• To impart skills in designing analyzing and restructuring reward management systems, policies
• To understand the various dimensions of Compensation Management.
UNIT I INTRODUCTION
Compensation – Definition – objectives- principles of compensation formulation- Compensation Design and strategy- theories of wage determination- Wage Structure -types of wages- wage boards- wage policy. Compensation decisions- compensation benchmarking- compensation trends and reward system in India.
UNIT II EMPLOYEE COMPENSATION AND LABOUR MARKET
Macroeconomics of Labour markets- Unemployment and its impact on labour market- Neoclassical microeconomics of labour markets-models, supply and demand-economic model Implications on employee compensation- economic theories and employee compensation- trade -offs – valuation of employee compensation.
UNIT III MANAGING EMPLOYEE BENEFITS AND REWARDS
Nature and types of employee benefits- statutory employee benefits in India- Deferred compensation plan- Non-monetary benefits. Reward – Meaning, Elements, Types- Basic concepts of reward management – Designing reward system- Approaches to reward system- Difference between reward and compensation.
UNIT IV PERFORMANCE RELATED COMPENSATION
Performance management system (PMS)-performance objectives – indicators- standards and metric – effective performance modeling-dimensions of performance- competency based pay. Team Compensation – Gain Sharing Incentive Plan – Enterprise Incentive Plan – Profit Sharing Plan- ESOPs
UNIT V EXECUTIVE AND SALES COMPENSATION PLAN
Executive Compensation – Components, Theories, Design- Relationship between Fixed and variable pay Executive Incentive Programmes. Sale Compensation plan- design and administration- sales incentives and motivations. Compensation Management in Multi-National organisations.
TOTAL: 45 PERIODS
The student gets to learn about
• The basics of Compensation Management and Reward system, Theories and strategies
• Macro and micro economics of labour market and employee compensation
• Managing employee benefits and rewards
• Performance related compensation
• Executive and sales compensation plans, theories and design
1. Richard.I. Henderson: Compensation Management In A Knowledge Based World – Prentice Hall, 2007.
2. Richard Thrope& Gill Homen: Strategic Reward Systems- Prentice-Hall, 2000
3. Reward Management: A Handbook of salary administration by Armstrong, Michael and
4. Marlis, Kogan page business books, 2005
5. Thomas.P. Plannery, David.A. Hofrichter&Paul.E.Platten: People Performance & Pay – Free Press.
6. Michael Armstrong & Helen Murlis: Hand Book Of Reward Management – Crust Publishing House.
7. Joseph.J. Martocchio: Strategic Compensation – A Human Resource Management Approach – Prentice-Hall.
8. Edwarde.E.Lawler III: Rewarding Excellence (Pay Strategies for the New Economy) – Jossey-Bass.