Annexure ‘CD-01’

L T P/S SW/FW No. of TOTAL

Course Title: COMPENSATION AND REWARD MANAGEMENT Credit Units: THREE PSDA CREDIT
UNITS
Course Level: PG Course Code: HR712
2 0 0 2 3 3
Course Objectives:
The Objective of the course is to equip students with the development and maintenance of internally equitable and externally competitive wage and salary
programs. To educate students in compensation with sufficient role of compliance along with discretionary organizational requirements in the matter. In
addition to learning contemporary concepts, approaches, techniques and terms, students will be taught the use of technology and measurement in compensation
and benefits.

Prerequisites: Basic understanding of Human Resource Management.

Course Contents / Syllabus: Weightage

Module I : Foundation of Compensation Management 20%

Introduction to Pay Model, Defining Compensation, Concept of Wage, Economic Theory of Wages, Strategic Perspectives of
Compensation, Internal Alignment, Concept of Equity, Job Evaluation and Methods of Job Evaluation, Hay Guide Chart

Module II : Designing Pay Level 15%

Defining External Competitiveness, Concept of Base Pay, Salary Progression, Contextual Influences on Pay – Allowances: Legal
and Unrestricted, Legal Compulsions in Compensation - Labor Laws Applicable to Compensation, Pay Commission, Wage Board
and Wage Agreements

Module III: Benefits and Social Security 15%

Defining Benefits, Mandatory Benefits, Benefit Determination Process, Discretionary Benefits, Flexible work schedule, Employee
Stock Option Plans, Factors affecting the Benefit Package, Administration of Benefits and Services

Module IV: Pay for Performance 15%

Individual Incentive – Merit Pay, Commission, Team / Group Incentives, Gain sharing and Profit Sharing, Concept of Bonus

Module V: Total Salary Structure and Administration 15%

Analyzing Salary Surveys, designing a Salary Structure, Ethics in Compensation, Deductions, Severance Pay, Flexi and Customized
Compensation, Competency Based Compensation

Module VI: Extending the Structure and Latest Trends 20%

Perspectives on Reward, Person focused Pay, International Pay Systems, Metrics in Compensation, Technology enablers in
Compensation, Latest Trends in Compensation and benefits.

Course Learning Outcomes:

 Recognize the basic competencies required for the development and management of compensation systems.
 State the impact of legal requirements on compensation management
 Evaluate the significance of employee benefits in the salary structure
 Interpret the rationale for different types of Benefit and Incentive plans
 Examine the latest trends and technology enablers in compensation system.
 Develop salary surveys and design salary structure

Pedagogy for Course Delivery: The Course will be taught using lecture, case -based and Remote learning methodology using Four Quadrant Approach.
Students will be asked to review content on the subject matter and discussions will be conducted in groups. Exercises will be conducted in making students
competent to design and frame a salary structure. Use of ICT and relevant software will be done for working knowledge of relevant concepts.

List of Professional Skill Development Activities (PSDA):

i. Create Individual/Group Incentive Plan for profiles in Product/Service sector.

ii.. Designing Salary structure: Survey/Interview with industry practitioners.

iii. Develop a case based on benefit package considering profile/s in Indian Multinational Corporation.

Lab/ Practicals details, if applicable: NA

List of Experiments:

Assessment/ Examination Scheme:

Theory L/T (%) Lab/Practical/Studio (%) End Term Examination

50% N. A 50%

Theory Assessment (L&T):

Continuous Assessment/Internal Assessment End Term
Examination
(50 %)
(50%)

Components (Drop Class Test Assignment Project& Case Study Quiz Attendance
down) Presentation

Linkage of PSDA with PSDA 1 PSDA 2 PSDA 3

Internal Assessment
Component, if any

Weightage (%) 10% 10% 10% 10% 5% 5%

Text Reading:
 Milkovich T. G., Newman M. J., Venkata Ratnam C.S. (2017) ‘Compensation’, 9th Edition, Tata Mc Graw Hill, ISBN: 007015158X

References:
 Martocchio Joseph (2018) ‘Strategic Compensation – A Human Resource Management Approach’, Ninth Edition, Pearson. ISBN: 9332584834
 Henderson, Richard I (2007) ‘Compensation Management in a Knowledge-Based World’, 10th Edition, Prentice Hall, ISBN: 8131711102
Any other Study Material:
 David D. Decenzo and Stephen P. Robbins, “Human Resource Management”, New Delhi, Prentice Hall, 3rd Edn., 1988.
 Michael Armstrong & Helen Murlis, HANDBOOK OF REWARD MANAGEMENT, Crust Publishing House
 Richard.I. Henderson, COMPENSATION MANAGEMENT IN A KNOWLEDGE BASED WORLD, Prentice Hall India, New Delhi
 Richard Thrope & Gill Homen, STRATEGIC REWARD SYSTEMS, Prentice Hall India, New Delhi.
 Mapping Continuous Evaluation components/PSDA with CLOs

Bloom’s Level > Remembering Understanding Applying Analysing Evaluating Creating

Course Learning State the impact of Recognize the basic Examine the latest Evaluate the
Interpret the Develop salary
Outcomes legal requirements on competencies trends and technology significance of
rationale for enablers in employee benefits in surveys and
compensation required for the
different types of compensation system. the salary structure design salary
management development and
Benefit and Incentive structure
management of
plans
compensation
Assessment type/PSDA
systems

Class Test ✓ ✓

Assignment (PSDA 1) ✓ ✓

Project& Presentation ✓ ✓ ✓
(PSDA 2)

Case Study (PSDA 3) ✓ ✓ ✓

Quiz ✓ ✓