PARUL UNIVERSITY - FACULTY OF MANAGEMENT

Department of Master of Business Administration

SYLLABUS FOR 4th Sem MBA PROGRAMME
Compensation Management (06202252)

Type of Course: MBA

Prerequisite:
Rationale:

Teaching and Examination Scheme:

Teaching Scheme
Examination Scheme
(Hrs./Week)
Credit External Internal Total
Lect Tut Lab
T P T CE P
4 - - 4 60 - 20 20 - 100
Lect - Lecture, Tut - Tutorial, Lab - Lab, T - Theory, P - Practical, CE - CE, T - Theory, P - Practical

Contents:
Teaching
Sr. Topic Weightage
Hrs.
Module 1:
‡ Introduction and Concept Of Compensation ±Direct And
Indirect Compensation Components, Dimensions And Designing
Reward System. Role of Compensation, Functions And
1 Responsibilities. Various Factors Affecting / Influencing 20% 13
Compensation. CTC- Cost to Company

Wage concepts (Minimum Wage, Fair wage, Living wage, Money/real

wage.)

Module 2:
‡ Theories of Wages: Macro- Micro, behavioural theories.
‡ Wage Policy- Economic, Social objectives.
‡ Compensation strategy at micro (company) level
‡ Legal considerations in determining compensation- institutional
mechanism for wage determination, collective bargaining, pay
2 commissions, wage boards. 30% 17
‡ Pay Surveys:
ƕ Why to conduct a Pay survey?

Data collection Method, external survey methods. Designing pay

ranges and bands. Designing base pay structure,

Module 3:
‡ Job Analysis : Definition and Steps of Job analysis
‡ Job evaluation: Definition, procedure, methods of job
evaluation.
3 ‡ Competency based pay and compensation trends 20% 10

Managerial compensation: elements of managerial compensation,

unique features of managerial compensation.

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 Module 4:
‡ Incentives:
‡ Meaning and definition, Classification of incentives, merits and
demerits of incentives,
‡ Types of incentives plans/ schemes.
‡ Wage incentive plans
4 ‡ Significance and Forms & Choices of performance linked reward 30% 15
scheme. Steps in designing Performance Pay/ variable pay.
‡ Benefits and Services:

Definition of fringe benefits, objectives. Classification of employee

benefits or types of benefits

Module 5:

Compensation Structure in India, CTC- Cost to Company( Calculation)

Tax planning and VRS (Voluntary Retirement scheme).

5 Grade and Pay structure, Types of Grade pay & pay structure of any % 5
organisation.

Comparative International Compensation

Overview of Future Trends in Compensation Management

*Continuous Evaluation:
It consists of Assignments/Seminars/Presentations/Quizzes/Surprise Tests (Summative/MCQ) etc.

Reference Books:
1. COMPENSATION AND REWARD MANAGEMENT (TextBook)
B.D.SINGH.; EXCEL PUBLISHER; LATEST
2. COMPENSATION MANAGEMENT IN KNOWLEDGE BASED WORLD
RICHARD HENDERSON; PEARSON; LATEST
3. COMPENSATION MANAGEMENT
MOUSUMI BHATTACHARYYA AND NILANJAN SENGUPTA; EXCEL PUBLISHER; LATEST
4. COMPENSATION MANAGEMENT (TextBook)
TABOMEY DEB; EXCEL PUBLISHER; LATEST
5. REWARD MANAGEMENT PRACTICE
MICHAEL ARMSTRONG; KOGAN PAGE; LATEST

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