MANAGEMENT DEVELOPMENT INSTITUTE, GURGAON

Part-time PGPM (April-2008 and October 2008)

Management Development InstituteElective Course

Compensation Management

COURSE OFFERED BY:

Tanuja SharmaRoom no.-C-6Contact No: MDI Phone nos., Office Extn: 304, 0124-4560304 (D)Emails-tanujasharma@mdi.ac.in

COURSE OBJECTIVES:

It matters what you pay for and it matters how you pay. Both these challenges have been crucial in today’s business world. Companies have recognized the fact that to attract, retain, reward, and motivate the employees, a sound understanding and designing of Compensation Management is a must in todays’ strategically managed Global world. In addition these need to be easily communicated and understood by organization members, be cost effective, and need to be unbiased and objective.

The course on Compensation Management will help in understanding, appreciating, internalizing and implementing the major challenges in this field.

The Course aims at orienting and exposing students to

Concept and components of fundamental compensation tools. The pay system strategies and Pay Model for internal equity. Benchmark to appropriate/comparable “markets”, i.e. external equity. Reconcile internal and external equity for “job slotting” in new pay range Pay for performance & Benefit options. Emerging trends in compensation

METHODOLOGY FOR SESSIONS

An experiential exercise has been planned to begin the session. Aim is to develop conceptual clarity of Compensation Management. In addition various methods to be used are

Active discussions in the class Class room cases for analytical sharpening. Real life case presentation by Industry Invitees. Class room presentations by students (Individual/ Groups) for skill building. Best Practices White Paper/ Project Report.

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The evaluation components with their weightages would consist of the following:

Quiz (two) 10 marks Class presentations (Individual/ Group Presentations) 10 marks White Paper/ Project Report (Group work) 15 marks Midterm 25 marks End Term Exam 40 marks

Broad Course Outline and session Plan

Day Topic Method1 An Introduction to Compensation

Compensation management, Philosophy & Policy.

An experiential exercise – for understanding and concept clarity.

2 Components of Compensation System.Readings: Chapter-1 ((Milkovich & Newman-Indian edition)

Case: Compensation Management and Workforce Diversity.

Class presentationQuiz 1

3 Compensation Strategy and Objectives.Total Compensation Model – Strategic Perspectives, Pay model.Integration with business.

Readings: Chapter-2 ((Milkovich & Newman-Indian edition)

Case: HBR

Rated assignment-Article presentations

Quiz 2

4 Job Evaluation Methods

Readings: Chapter-4 &5 ((Milkovich & Newman-Indian edition)

Case based exercise on Job Analysis and Job Evaluation

5 Class presentations based on book topicsPart Five & Part Six (Milkovich & Newman-Indian edition)

Rated assignment

Mid Term (Written exam) Weightage-25%

6 Market Pricing & Compensation BenchmarkingCompensation surveys, Source of data Collection, process of carrying out surveys, Job Pricing, Compensation Levels.

Readings: Chapter-7 ((Milkovich & Newman-

Salary surveys.

Guest lecture by expert from Hewitt

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Indian edition)7 Designing the Compensation Programme

Pay levels, Pay Structures and Pay systems.Pay ranges and Bands.

Readings: Chapter-8 & Appendix –B, 263-265 (Milkovich, 8th Edition).Developing Pay Structures, Pay Curve, Pricing Jobs, Treating Anomalies. Wage structure, Pay Grades, Pay adjustment Matrix. Broadbanding.

Readings: Page 217-239 of the book Reward Management.

Real life cases

Quiz-3

8 Pay for Performance, Rewarding –performance, psychological theories related to rewards.

Readings: Part 3 &4, Milkovich, 8th Edition

HBR caseQuiz-4

9 Challenges to Pay for Performance, Merit pay, Incentive pay etc.Employee Benefits, Key Issues, Benefit planning, designing and administration, administering Benefits. Benefit Options.

Class discussion &Guest speaker.

10 White Paper/project report presentation Weightage -15%

End Term (Written exam) Weightage-40%

Recommended Reading: Compensation (9th edition) By Milkovich, Newman& Venkata Ratnam., Tata McGraw Hill Publishing company., New Delhi.

Suggested readings :1. Armstrong,M and Murlis,H (1998) Reward Management,A handbook of Remuneration Strategy

and Practice,4th edition Kogan Page Ltd./IPM,London,Published in association with Hay Management Consultants.

2. Bergmann, Thomas, J. & Scarpello, Vida G. (2002) Compensation Decision Making,4th Edition,South-Western.

3. Henderson, Richard I. (2006) Compensation Management in a Knowledge-Based World, 9th edition,Prentice Hall, (Indian Edition-Pearson Education).

4. Martocchio Joseph J.Strategic (2006). Compensation-A Human Resource Management Approach, 3rd Edition, Pearson Education.

5. John Stredwick (1997), Cases in Reward Management, Kogan Page Ltd.London

6. Desslar Gary (2000) Human Resource Management, 8th Edition, Pearson Education, Asia.

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