Annexure ‘AAB-CD-01a’

L T P/S SW/ No. of TOTAL

Course Title: Compensation Management
FW PSDA CREDIT
Course Code: HR 304 UNITS
Credit Units:3
Level: UG 2 - - 2 3 3

Course Objectives:
The objective of the course is to develop students’ understanding of the concepts of compensation and rewards in the organization, compensation structure and
differentials. This course will explore the factors of job analysis, job description, and job evaluation as the basis of compensation strategy, offering students an
opportunity to develop competencies in making equitable compensation decisions. The course covers topics related to broader concepts of compensation such
as incentive and competency-based pay. It also familiarizes the students with the latest issues related to compensation in order to make the students abreast of
the recent technologies and trends in this area.
Prerequisites: Students should have knowledge of basic management subjects wherein Human Resource management should be a core Paper.

Course Contents/Syllabus:
Module I: Introduction to Compensation Management Weightage (%)

Descriptors/Topics: 20%

 Overview of Compensation Management: meaning, objectives, nature of

compensation, types of compensations,

 Role of various parties – Employees, Employers, Unions & Government in deciding

compensation, Macroeconomics of labour market.

 Economic dimensions of Compensation Management: Introduction to the Theories

of Wages

 Compensation Policies, wage board, pay commission, Wage Legislations.

Module II: Designing Pay Structure 20%

Descriptors/Topics

 Concept of Equity in compensation

 System of wage payments: concept of Minimum, Fair and Living Wages, concept and numerical based on Basic
systems- Time wage, Piece wage

 Job Analysis programme, Job Evaluation Compensation Surveys, Designing Pay Ranges and Bands,
Significance of Factors Affecting Pay Levels, Developing Competitive Compensation Programs

 Converting Remuneration Survey results into a Salary Proposal, Total Salary Structure, Measuring Cost- to –
Company (CTC).

 Challenges Regarding Compensation Design

Module III: Performance Linked Compensation 20%

Descriptors/Topics

 Performance Appraisal and Measurement, Pay for Performance Plans: Non - Financial and Financial
incentives, individual, group incentive and Organization wide plans, Productivity Gain sharing plans, Profit
Sharing Plans, Performance -linked reward system
 Competency Mapping & Developing Performance Matrix

Module IV: Benefits and Services 10%

Descriptors/Topics

 Concept of Benefits, Classification of Employee Benefits, Employee Benefit Programs, Factors

Influencing Choice of Benefit Program, Benefit determination process,

 Employee Services – Designing a Benefit Package, Administration of Benefits and Services

Module V: Compensation Plans and tax planning 20%

Descriptors/Topics

 Equity Compensation Plans – objective of equity compensation, introduction to ESOPs, types of Stock Plans,
 valuing stock grants, SEBI Guidelines, taxability of stock options, Various Types of Allowances.

 Taxation of Benefits: Concept of Tax Planning, tax efficient compensation package.

Module VI: Latest Developments, Trends and Practices 10%

Descriptors/Topics

 Current Trends and practices in Compensation Management, HR Metrics and Workforce Analysis to improve
decision making, People count Analysis to assist with salary and workforce planning, OFCCP Compensation
analysis to align salary ranges with the current market trends, total reward strategies and its implementation in
the organization.

Course Learning Outcomes:

At the end of the course the student must be able to:

 Understand the concepts of compensation management, wage Legislations pertinent to compensation in India.
 Analyze internal and external data and benchmarking, including the impact of contextual variables (e.g., location, industry, labor unions) on the wage
setting process
 Apply skills in formulating a compensation policy and planning a suitable package on principles of equity and efficiency
 Apply basic skills in developing job descriptions, salary structures and performing job evaluation.
 Analyze performance linked Compensation and use Compensation analysis as a strategic Human Resource tool.
 Evaluate theoretical and practical approaches to address various current compensation and benefit issues and opportunities.
 Apply quantitative tools and innovations of compensation management in organizations

Pedagogy for Course Delivery: Pedagogy for Course Delivery:

Teaching methods will be a mix of an analytical approach where the students will gain theoretical and practical knowledge through textbook materials, lectures, videos,
current event discussion, guest speakers, group and individual projects using case studies and presentations. Each student is required to do the back ground reading from the
specified chapters before coming to class.

• Lecture and class discussion

• Case study and Individual assignments
• Team project/Assignment

List of Professional Skill Development Activities (PSDA):

1. Field Project 1- The first activity asks students to conduct online research to investigate market pay rates for six jobs using at least two different web sites. The
activity demonstrates the variability in data available and requires students to conduct basic statistical analysis.
2. Field Project 2- The second activity asks students in group of 3-4 to plan a salary survey project using a Gantt chart. This activity demonstrates the importance
of planning and organizing the project and introduces a useful project management tool. conduct a survey in an organization of your choice to find out about
the compensation management practices and policies. Prepare a report and present in the class.
3. Assignment- The last activity asks students to analyze sample survey data using basic statistical techniques. This activity further challenges students to
generate a market pay line using regression calculations. This activity demonstrates the link between internal job evaluation results and market pay rates.

Lab/ Practical’s details, if applicable: NA

Assessment / Examination Scheme:

Theory L/T (%) Lab/Practical/Studio (%)

100% NA

Theory Assessment (L&T):

Continuous Assessment/Internal Assessment End Term

Examination
(40%)
(60%)

Components (Drop
down)
Mid-Term Project Viva Voce (Based Assignment Attendance
Exam on Project 1)

Linkage of PSDA with NA PSDA 2 PSDA 1 PSDA 3 NA

Internal Assessment
omponent, if any

Weightage (%) 10 15 5 5 5 60

Lab/ Practical/ Studio Assessment:

 Continuous Assessment/Internal Assessment End Term Examination
(____ %) (____ %)

Components (Drop down NA NA NA NA NA NA NA

Weightage (%)

Mapping Continuous Evaluation components/ PSDA with CLOs

Bloom’s Level > Remembering Understanding Applying Analysing Evaluating Creating

Course CLO1 CLO1 CLO3 CLO2 CLO6

Learning
Outcomes CLO4 CLO5

CLO7

Assessment
type/PSDA

Field Project 1   

Field Project 2   

Assignment   

Mid Term    

Text Reading:

 Compensation, Milkovich& Newman, McGraw-Hill Education, 10th edition, 2010

 Dessler G (2005). Human Resource Management Pearson Education, India

References:
 Snell S and Bohlander G (2007). Human Resource Management, Cengage Learning (Thomson Learning).
 Aswathappa. K, (2005), Human Resource Management- Text & Cases, Tata McGraw Hill, New Delhi
 Rao VSP(2007) Human Resource Management. Text & Cases Excel Books
 Elizabeth Lanhan, Administration of W age and salaries, Harper & Row 2013.
 Dravid W .Belcher, W ages and Salary Administration, Himalaya, 2013

Additional Reading:
 www.usu.edu/hr/files/uploads/policies/384.pdf
 shodhganga.inflibnet.ac.in/bistream/10603/9548/16/16_chapter 7.pdf
 https:/ /www deschutes.org
 onlinelibrary.wiley.com / doi/10.1111 /j.15360.1956.tboo1 3 3x/ abstractaweb .wayne.edu /~absel/bkl/vo/ 07 / 07 bp.pdf