Course : Compensation Management

Faculty : Dr. Mousumi Sengupta

Batch : 2018-2020
Term : IV
Credits : 3

Introduction:

This course helps management students to understand the basic components of employee
compensation and benefits, in order to lead the people, recognize their contribution towards
organizational excellence, and, to acknowledge their value creation in the company.

Course objectives:

The objectives of this course are as under:

 The course is aimed to sensitize students about the major compensation components
and its various forms.

 The course also helps students to manage the employee compensation and benefits
within organizations.

Alignment of Compensation Management Course Objectives with the SDMIMD Vision and
Mission

Business Leadership: Compensation management helps to recognize people’s contribution and

motivate them to take leadership positions in organizations, and, therefore, leads to enhanced
business leadership.

Organizational Excellence: Rewarding employee performance motivates employees, leading to

organizational excellence.

Value Creation: Managing compensation is a method to recognize the value, which individual
employees bring in towards achieving organizational goals.

Name of Course Term PEO 1 PEO 2 PEO 3 PEO 4 PEO 5

Compensation Management IV High High High High High
 Pedagogy:

The activities will consist of lectures, moodle based assignment, project submission, project
presentation, and case study analysis.

Students are encouraged to gather additional information by readings articles, newspapers,

journals, and, web-based resources, along with collection of data from primary sources to
develop understanding of current practices in the field of compensation management.

Course Evaluation Components and Weightages:

Component % Remarks
marks
Moodle based assignment 15 Assessment of students’ learning in the context of
the course and implement the same in certain
situations
Project Report submission 10 Submission of written report on a given topic through
collection of data to assess students’ learning in the
field of study
Project Report presentation 10 Presentation of the report and findings
Case Analysis 15 Examination to assess students’ ability to analyze the
given case situation
Mid-term Exam 25 Descriptive examination
End-term Exam 25 Descriptive examination
Total 100

Assessment Rubric for the Vision & Mission Elements and Evaluation Components

Table of Applicability

Evaluation Moodle Descriptive Case Project Project

Component/ based examinations Analysis Report report
Vision & Mission assignments submission presentation
Element
Business Leadership Yes Yes Yes Yes Yes
Organizational Yes Yes Yes Yes Yes
Excellence
Value Creation Yes Yes yes Yes Yes

Descriptive Examinations

Exceptional Excellent Accomplished Unacceptable

Common attributes structured answers, structured Unstructured Inappropriate
relevant concepts, own answers, relevant answer, relevant answer
interpretation concepts concepts
Vision & Mission
Element
Business Leadership, Explains relevant concepts Explains relevant Explains relevant No relevant
Organizational and theories, provides concepts and concepts and concepts and
Excellence, Value relevant illustrations, theories, provides theories theories are
Creation provides own relevant explained
interpretation of the illustrations
concept & own concluding
remark

Project Report submission

Element Exceptional Excellent Accomplished Unacceptable

Common Punctual Punctual submission, Late submission, Late submission,
attributes submission, structured write up, structured write up incoherent write-up
structured write ups, collection of primary
collection of primary data
data, appropriate
reference
Vision and Mission
Element
Business Reviews literature, Reviews literature, Reviews literature, Reviews literature,
Leadership, collects primary collects primary data, collects primary data no data collection
organizational data, provides own provides references
excellence, value interpretation and
creation conclusion, provides
references

Project Report presentation

Element Exceptional Excellent Accomplished Unacceptable

Common Presenting the Presenting the Presenting the Incoherent
attributes findings of the findings of the report findings of the report presentation
report in a in a structured in a structured
structured manner, manner, explaining manner
within time limit, the data collection
explaining the data method, within time
collection method, limit
concluding remarks
Vision and Mission
Element
Business Structured Structured Structured Unstructured
Leadership, presentation presentation presentation presentation
organizational maintaining the maintaining the time exceeding time limit
excellence, value time limit, limit, explaining the
creation explaining the data data collection
collection method, method, explaining
explaining the the barriers of data
barriers of data collection
collection,
 explaining how the
findings may be
relevant for leaders
in creating
organizational
excellence

Moodle based assignment

Element Exceptional Excellent Accomplished Unacceptable

Common Punctual Punctual submission, Punctual submission, Late / no
attributes submission, structured comments unstructured submission
structured with originality of comments
comments with thoughts, Moodle
originality of participation
thoughts,
appropriate
language, Moodle
participation
Vision and Mission
Element
Business Analyse the content, Analyse the content Incomplete analysis No submission
Leadership, provides own
organizational interpretation and
excellence, value conclusion
creation

Case Analysis

Element Exceptional Excellent Accomplished Unacceptable

Common Punctual submission, Punctual Punctual Late submission,
attributes structured write ups, submission, submissions, Incoherent
relevant concepts, own structured write structured write ups, explanation
interpretation of the case, ups, relevant relevant concepts
additional information concepts,
relevant to the case. interpretation of
the case
Vision and Mission
Element
Business Explains relevant Explains relevant Explains relevant Incoherent
Leadership, concepts and theories, concepts and concepts and explanation of
organizational interprets the case facts, theories, theories, interprets theories and case
excellence, value analysing the SWOT of interprets the the case facts facts
creation the case facts, own case facts, own
concluding remark, concluding
provides additional remark
information relevant to
the case.
Coverage of the subject :

Sessions Coverage
1-2 Introduction to Compensation Management
 Introduction
 The pay model
 Theories Related to Compensation Management

3 Job Analysis
 Defining job, task, and duty
 Job description and job specification
 Various procedures of job analysis
 Parameters for judging Job analysis

4-5 Discussion on fixed and variable components of salary

 Discussion on Net Salary and Take Home salary
 Discussion on components of Employee Benefit
 Preparation of Salary slip
 Calculation of C to C

6-8 Job Evaluation

 Defining Job Evaluation
 Methods of Job Evaluation

9 Stock Compensation

What is stock based compensation

Employee stock options
Intrinsic value method
Fair value method

10-12 Performance related pay

 Individual performance related pay
 Specific short term pay
 Individual incentives
 Team performance related pay
 Gain sharing
 Profit sharing
 Employee stock option plan

13 Pay design and pay structure

 Designing pay structure
  Specifying the employer’s competitive pay policy –
 Defining the purpose of the survey
 Selecting jobs for inclusion in the survey
 Designing the survey -
 Interpreting survey results -
 Constructing a pay policy line that reflects external pay
policy
 Balancing competitiveness with internal alignment
 Components of pay structure in India

14 Compensation of special groups

 Corporate Directors
 Supervisors
 Exécutives
 Scientists and Engineers

15 Compensation management : Strategic perspective

 Developing compensation strategy
 Policies those are strategically relevant

16-18 Case Analysis

19-20 Project report presentation

Recommended Text Book:

1. Mickovich, G. T., Newman, J. M., &, Venkat Ratnam, C. S. (2013). Compensation. TMH.

Reference Books:

1. Henderson, R. (2006) Compensation management in a knowledge-based world. PHI.

2. “Appraisal & Developing Managerial Performance”. T V Rao, Excel Books
3. “360 Degree Feedback and Performance Management System”. T V Rao, M Vijaya
Lakshmi and Raju Rao

Cases:

GiveDirectly. By John Beshears; Joshua R. Schwartzstein; Tiffany Y. Chang; Brian J. Hall.

Harvard Business Publishing. Mar 7, 2018

WrapItUp: Developing a New Compensation Plan. By W. Earl Sasser Jr.; Rachel Shelton,
Harvard Business Publishing. Nov 4, 2011

Bonuses in Bad Times. By Daniela Beyersdorfer; Vincent Dessain; Zeynep Ton. HBR case
study. Jul 1, 2012
When Salaries Aren't Secret. By John Case; Victor Sim; Dennis Bakke; Ira Kay; Bruce
Tulgan. HBR case study. May 1, 2001

Roush Performance: How to Design a Sales Force Compensation Plan. By Doug J. Chung.
Harvard Business Publishing . Jan 25, 2019

Best-Laid Incentive Plans. By Steven Kerr; Stephen P. Kaufman; Steven E. Gross; Diego E.
Hernandez; Barry Leskin. HBR case study. Jan 1, 2003

--------xxxxx-------