PES INSTITUTE OF TECHNOLOGY – BANGALORE SOUTH CAMPUS Dept. of MBA Course Outline Semester – III Subject Code : 14MBAHR303 Subject Title : Compensation and Benefits. Faculty Name : Nagabhushana R No of Lecture + PPT Hours / Week: 04 Practical Component Hour : 01 Total no of Lecture + PPTs: IA Marks: Exam Hours: Exam Marks: Table -1 Session Plan 56 50 03 100 Module No Session No. Contents Objective 1 1 Introduction to compensation. Definition of compensation. To understand the importance of compensation in human resources management. 1 2 The pay model. To understand the pay model. Discussion on pay model. Students should be able to have complete clarity of pay model. Strategic pay policies. To understand the importance of strategic pay policies. Discussion on various strategic pay policies. Students should be able to explain various strategic pay policies. 1 3 Description Outcome Discussion on Students should be able to various nuances justify criticality of of compensation compensation management in management. HR management. Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No 1 Session No. 4 Contents Objective Strategic perspectives of pay. To understand strategic perspectives of pay. Strategic Pay 1 1 5 6 Decisions, Best Practices vs. Best Fit Options Review of To understand strategic Pay Decisions and compare, Best Practices vs. Best Fit Options. To have complete Description Discussion on important Strategic perspectives of pay. Discussion on Strategic Pay Outcome Students should be able to evolve Strategic perspectives of pay. Decisions, Best Practices vs. Best Fit Options. Students should be able to take Strategic Pay Decisions. Discussion on Students should be able to Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No 2 Session No. 7 Contents Objective Description Outcome Module 1. clarity of module 1. concept of compensation, the pay model, strategic pay policies, and strategic perspectives of pay. Discussion on the concept of take strategic pay decisions. Internal Internal Alignment. Defining Internal Alignment: To understand the importance of Internal Alignment: Students should be able to understand the nuances of Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que 4% Module No Session No. Contents Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Alignment: 2 8 9 2 10 Internal Pay Structures, Strategic Choices In Internal Alignment Design. Strategic Choices In Internal Alignment To understand the importance of Internal Pay Structures. To understand various Strategic Choices In Internal Alignment Design. To understand various Strategic Discussion on Internal Pay Structures. Discussion on Strategic Choices In Internal Alignment Design. Discussion on Strategic Choices Students should be able to understand the nuances of Internal Pay Structures. Students should be able to take decisions keeping in mind various Strategic Choices In Internal Alignment Design. Students should be able to take decisions keeping in Group presentatio n1 Quiz Module No Session No. Contents Objective Description Outcome Design continuation. Choices In Internal Alignment Design. In Internal Alignment Design. mind various Strategic Choices 11 Which Internal Structure Fits Best? To evolve the most appropriate internal structure. Students should be able to evolve the most appropriate internal structure. 2 12 Review of module 2. To review module 2. Discussion on best internal structure. Discussion on the concept of internal alignment. 3 13 Job Analysis and To understand the Discussion on Students should be able to 2 Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que In Internal Alignment Design. Students should be able to evolve the most appropriate internal structure. quiz Summary of Module 2 learning Class Particip ation Module No Session No. Contents Objective Description Outcome Evaluation: importance of Job analysis and evaluation. the importance of Job analysis and evaluation. realize the importance of Job analysis. Discussion on 3 14 3 15 Job Analysis Procedures. Job Analysis Data Collection Process To learn various Job Analysis Procedures. Job Analysis Procedures involved. To understand Job Discussion on Analysis Data Collection Process. Job Analysis Data Presentati on Students should be able to design job analysis procedures for a given business model. Students should be able to design Job Analysis Data Collection Process Assignment s/ additional work Assignment #2 Group presentatio n2 Student Learnin g Evaluat ion Techni que Module No 3 3 3 Session No. 16 17 18 Contents Job Descriptions Definition of Job Evaluation. Major Decisions In Job Evaluation. Description Outcome Collection Process. for given job profile. To understand the concept of Job Discussion on the concept of Students should be able to write down Job Descriptions for Descriptions. Job Descriptions. a given job. To understand the importance of Job Discussion on the concept of job evaluation. Students should be able to defend the importance of Job Objective Evaluation. To understand the Discussion on Major Decisions In Job Evaluation. Major Decisions In Job Evaluation. Presentati on Assignment s/ additional work Evaluation. Students should be able to list down various Major Decisions In Job Evaluation. Summary of Module 3 learning + Assignment #3 Student Learnin g Evaluat ion Techni que Module No 4 4 4 Session No. 19 20 21 Contents Objective Job Evaluation Methods. To understand various Job Final Result – Pay Structure. Case study Evaluation Methods. 22 Case study 2 Discussion on Job Evaluation Methods. To understand Discussion on Final Result – Pay Structure. Final Result – Pay Structure. To understand practical challenges of Job Analysis and Evaluation. 4 Description To understand Discussion real time challenges of Job Analysis and Evaluation. Discussion real Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Group . Quiz Students should select appropriate Job Evaluation Method for a given scenario. Students should be able to evolve. Students should get real time exposure of challenges of Job Analysis and Evaluation. Students should get real time Module No 4 4 Session No. 23 24 Contents Determining External Competitiveness and Benefits Management: Definition of Competitiveness. Pay Policy Alternatives Objective Description Outcome Presentati on practical challenges of Job time challenges of Job Analysis exposure of challenges of Job presentatio n3 Analysis and Evaluation. and Evaluation. To understand the importance of External Competitiveness. To understand various Pay Policy Discussion on various broad overviews of Analysis and Evaluation. Students should get clarity of the broad concept of External External Competitiveness. Competitiveness. Discussion on various Pay Students should be able to list out and decide best and Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No 4 4 Session No. 25 26 Contents Wage Surveys, Interpreting Survey Results Pay Policy Line, Pay Grades Objective Description Outcome Alternatives. Policy Alternatives appropriate Pay Policy To understand the importance of Wage Surveys, Interpreting Survey Results. To understand the concept of Pay Policy Line and Pay Grades. Discussion on Wage Surveys and methods of Interpreting Survey Results. Discussion on Pay Policy Line and Pay Grades. Presentati on Assignment s/ additional work Alternatives. Students should be able to identify various wage survey techniques and methods of Interpreting Survey Results. Students should be able to write down Pay Policy Line and Pay Grades for a given business model. Summary of Module 4 learning Assignment #4 Student Learnin g Evaluat ion Techni que Module No 4 4 5 Session No. Contents 27 Benefits Determination Process and Value of Benefits. 28 29 Legally Required Benefits. Retirement, Medical, & Other Benefits. Objective Description Outcome To understand the Discussion on benefits offered to employees. Students should be able to determine the value of benefits. Discussion on various Legally Students should be able to list out various Legally Required Benefits. Required Benefits. Discussion on various statutory benefits. Students should gain deep insights about various statutory benefits. Benefits Determination Process and Value of Benefits. To understand various Legally Required Benefits. To know various statutory components like Retirement, Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective Description Outcome Presentati on Students should be able to write down important features of statutory benefits. Group presentatio n5 Medical, & Other Benefits 5 5 30 Review of Module 4. 31 Performance Based Compensation System: Employee Contributions: To gain complete Discussion on knowledge of various statutory important benefits. statutory benefits. To understand the Discussion on Performance importance of Performance Based Compensation System: Employee Contributions: Based Compensation System: Employee Contributions: Students should be able to design Performance Based Compensation System for given job profile. Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective Description Outcome Presentati on Employee Contributions: Pay For Performance (PFP): 5 32 Objective: To understand the concept of Pay For Performance (PFP). Description: Discussion on the concept of Pay For Bangalore One-case presentatio n6 Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Case study questions Case analysis ability Performance (PFP). Outcome: Students should be able to design concept of Pay For Performance (PFP) in a given scenario. 5 33 Rewarding Desired Behaviors. Objective: To Module No Session No. Contents understand the importance of Rewarding Desired Behaviors. Description: Discussion on benefits of Rewarding Desired Behaviors and methods of Rewarding Desired Behaviors. Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective Description Outcome Presentati on Assignment s/ additional work Outcome: Students should be able to evolve techniques / methods of Rewarding Desired Behaviors. 5 34 Does Compensation Motivate Performance? Summary of Module 2 learning + Assignment #5 Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective: To understand whether Compensation Motivate Performance? Description: Discussion on various techniques of performance based compensation and Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents related motivational aspects of compensation. Outcome: Students should be able to design a performance based compensation. 5 35 Designing PFP Plans, Merit Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Pay/Variable Pay. Objective: To understand methods of Designing PFP Plans, Merit Pay/Variable Pay. Description: Discussion on PFP Plans, Merit Pay/Variable Pay concept in different Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents scenarios. Outcome: Students should realize the importance PFP Plans, Merit Pay/Variable Pay concept in different scenarios and should be in a position to implement it in a given scenario. Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Individual vs. Group Incentives. 5 36 Objectives: To understand the differences between Individual vs. Group Incentives. Description: Discussion on Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Individual vs. Group Incentives. Outcome: Students should be able to design appropriate Individual and Group Incentives. 6 37 Long Term Incentives. Objective: To Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents understand the concept of Long Term Incentives and its importance. Description: Discussion on various Long Term Incentives being used in organizations. Outcome: Students should understand Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective Description Outcome Presentati on Assignment s/ additional work Group presentatio n7 Summary of Module 6 learning the techniques of Long Term Incentives. 6 38 Compensation of Special Groups: Who are Special Groups? Objectives: To understand the importance of Compensation of Student Learnin g Evaluat ion Techni que Module No Session No. Contents Special Groups. Description: Discussion on compensation of special groups and important special groups. Outcome: Students should be able to design compensation for special groups. Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Module 6: Legal & Administrative Issues in Compensation: Legal Issues. 6 39 Objectives: To understand the importance of Legal & Administrative Issues in Objective Description Outcome Presentati on Assignment s/ additional work Assignment #6 Student Learnin g Evaluat ion Techni que Module No Session No. Contents Compensation. Description: Discussion on Legal & Administrative Issues in Compensation with examples. Outcome: Students should get exposed to Legal & Administrative Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Issues in Compensation. Pay Discrimination 6 40 Objective: To understand the nuances of Pay Discrimination. Description: Discussion on the concept of Pay Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Discrimination. Outcome: Students should have complete insights of Pay Discrimination and its impact on morale of the organization. 6 41 Pay Discrimination Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective: To understand the nuances of Pay Discrimination. Description: Discussion on the concept of Pay Discrimination. Outcome: Students should have complete insights of Pay Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Discrimination and its impact on morale of the organization. Budgets and Administration 6 42 Objective: To understand the concept of Budgets and Administration in relation to Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents compensation management. Description: Discussion on the concept of Budgets and Administration in relation to compensation management. Outcome: Students should get exposed the modalities of Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents the concept of Budgets and Administration in relation to compensation management. Case study. 6 43 Objective: To understand practical Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents challenges of pay discrimination. Description: Discussion real time challenges of pay discrimination.. Outcome: Students should get real time exposure of challenges of pay Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents discrimination. Case study. 6 44 Objective: To understand practical challenges of pay discrimination. Description: Discussion real time challenges of Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective Description Outcome Presentati on pay discrimination.. Outcome: Students should get real time exposure of challenges of pay discrimination. Case study. 7 45 Objective: To understand Group presentatio n8 Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents practical challenges of legal issues. Description: Discussion real time challenges of legal issues. Outcome: Students should get real time exposure of challenges of Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective Description Outcome Presentati on Assignment s/ additional work Legal issues. Case study. 7 46 Objective: To understand practical challenges of legal issues. Description: Discussion real time challenges of legal issues. Summary of Module 7 learning Student Learnin g Evaluat ion Techni que Module No Session No. Contents Outcome: Students should get real time exposure of challenges of Legal issues. Case study. 7 47 Objective: To understand practical challenges of legal Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents issues. Description: Discussion real time challenges of legal issues. Outcome: Students should get real time exposure of challenges of Legal issues. Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Review of module 6 7 48 Objective: To have complete clarity on nuances of module 6 concepts. Description: Discussion the concepts of module 6 with examples. Outcome: Students Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective Description Outcome Presentati on should realize the importance and critacallity of pay discrimination. Module 7: Global Compensation 7 49 Objectives: To understand the nuances of Global Compensation. Group presentatio n9 Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Summary of Module 2 Class particip Description: Discussion on the nuances of Global Compensation. Outcome: Students should gain insights of the nuances of Global Compensation. 7 50 Recognizing Module No Session No. Contents Variations. Objective: To understand variations in Global compensation. Description: Discussion on variations in Global compensation. Outcome: Students should be able to Objective Description Outcome Presentati on Assignment s/ additional work learning + Assignment #8 Student Learnin g Evaluat ion Techni que ation Module No Session No. Contents draw variations in Global compensation. Social Contract. 51 Objective: To understand the concept of Social Contract. Description: Discussion on Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents nuances of social contract. Outcome: Students should learn techniques of evolving social contracts. Culture & Pay. 52 Objective: To understand the Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents relation ship between Culture & Pay. Description: Discussion on he relation ship between Culture & Pay. Outcome: Students should derive the relation ship between Culture & Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Pay. Strategic Choices In Global Compensation. 53 Objective: To understand Strategic Choices In Global Compensation. Description: Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Discussion on Strategic Choices In Global Compensation. Outcome: Students should get exposed to Strategic Choices In Global Compensation. 54 Comparing Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Systems. Objective: To compare important global compensation systems. Description: Discussion on various important global compensation systems. Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Outcome: Students should gain complete insights of important global compensation systems. Expatriate Pay. 55 Objective: To understand the concept of Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents Expatriate Pay. Description: Discussion on Expatriate Pay with examples and various components. Outcome: Students should be able to design expatriate pay scale in a given situation. Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. Contents 56 Discussion on the concepts of the module. 57 58 59 60 61 VTU Question paper discussion. VTU Question paper discussion. VTU Question paper discussion. VTU Question paper discussion. VTU Question Objective Description Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Module No Session No. 62 Contents Objective Description paper discussion. VTU Question paper discussion. Table – 2 Outcome Presentati on Assignment s/ additional work Student Learnin g Evaluat ion Techni que Presentation Topics Mod No S.No. 1 2 3 4 5 6 7 8 9 Presentation Topic Group presentation 1 – Students choice Group presentation 2 – Students choice Group presentation 3– Students choice Delhi Metro Train – case presentation - 4 Group presentation 5– Students choice Bangalore One-case presentation 6 Group presentation 7– Students choice Group presentation 8– Students choice Group presentation 9– Students choice Table – 3 Assignments & Additional Work Mod No 1 2 3 4 5 6 Assignment Topics Practical Components Students must prepare a comprehensive compensation plan to be offered to a Sales Executive, A General Manager and The CEO of an organization. Students to collect information from an IT organization regarding the Cost To Company of an employee. Students have to prepare questionnaire for conducting wage survey and carry out Table – 4 Case Study Topics Sl No 5 10 15 20 25 30 35 40 45 50 55 60 Topic Case study on Approaches to Compensation Case Study on Wage Theories Case on Bargaining Ability of Unions, Case study on Job Evaluation Case on CTC Case connecting CTC and perquisites Presentation on incentive schemes Presentation on Employee Insurance Schemes Presentation on Types of Stock Options Case on Executive Compensation Case on Equal remuneration Act Presentation on Tax Compliance Table – 5 References & Additional Readings Mod No S.No. 1 to 8 1 to 8 1 to 8 1 2 3 1 to 8 4 1 to 8 1 to 8 1 to 8 5 6 7 Particulars Compensation & Reward Management, BD Singh, Excel BOOKS Compensation, Milkovich & Newman, TMH Strategic Compensation, Joseph J. Martocchio, 3rd Edition, Pearson Education Compensation Management in a Knowledge based world, Richard I. Anderson, 10th edition, Pearson Education Compensation Management, Er Soni Shyam Singh, Excel Books Compensation & Reward Management, BD Singh, Excel BOOKS Compensation, Milkovich & Newman, TMH Table – 6 (IA Pattern) Test Marks Presentations Assignments 60% 20% 20% For Internal Evaluation T1 marks and the best out of remaining two will be considered. 1st Test is mandatory. Question Bank:- Question Bank 3 Marks Questions: 1. What are principles of compensation? 2. What are fringe benefits? 3. What do you mean by ‘perquisites? 4. What is variable pay? 5. What is the theory of s demand and supply? 6. What are the components of executive compensation? 7. Which are the benefits that can be taxed. 8. List statutory benefits? 9. What are the non statutory benefits? 10. Differentiate between Managerial and Executive Compensation? 11. What is Golden Parachute. 12. What are the stock options plan? 13. Who are special groups. 14. Write short notes on merit pay, variable pay, and PFP. 7 & 10 Marks Questions : 1. Explain CTC Method with an example 2. What are the factors to be considered while designing compensation? 3. How do you maintain equity principle? 4. Explain principles of compensation? 5. Explain Economic Theories Of Wages? 6. Explain the procedure of remitting the tax 7.Explain the connection between strategy and compensation? 8. Explain the concept of Pay For Performance (PFP):
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