SVKM’s

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

MASTER OF BUSINESS ADMINISTRATION
Program: MBA Trimester: V
Course: Compensation and Benefits Code:
Evaluation Scheme
Teaching Scheme
Classroom Practical/ Tutorials
Credit Continuous Term End Examination
Session Group work Evaluation (TEE)
20 Yes 60% 40%
Course Rationale:
Compensation, Benefits & Rewards play a key role in determining, re-enforcing and complementing business
strategies and tools to shape individual behavior in an organization. The choice of compensation, benefits and
rewards tools have to take into account the workforce profile and industry practices. The course will have a mix
of theory and practice sessions and will draw upon experiences of various practices in organizations to provide
rich insights.

Course Objectives:
1. To develop a comprehensive understanding of various concepts, components and tools in the compensation,
benefits and rewards management
2. To develop application of both monetary and non-monetary instruments in the area of benefits and rewards
3. To develop application and appreciation of tax structures and tax laws, the implications of those on
organization.
4. To develop awareness of management of compensation at global level and govt. policies
5. To develop awareness and enable reflection on some best-in-class practices in compensation and benefits
administration.

Learning Outcomes:
1. Gain competencies to critically assess/ formulate the compensation strategy for an organization and link
with the long term vision of the company
2. Gain competencies to design and implement various short term and long term incentive schemes and
variable pay structures
3. Results in appreciation of the importance of compensation, benefits and rewards tools for the purposes of
employee retention, motivation, performance orientation, etc.
4. Comprehend the concepts and fundamentals related to benchmarking.
5. Gain competencies in conceptualizing the design and implementation of compensation structures and
policies for organization keeping in mind the industry landscape.

Prerequisite(s):
Pedagogy:
 Case based analysis, group exercises, experiential learning activities, quizzes, presentations and lecture
method.

Textbook:
 Compensation, 12e, George Malkovich & Jerry Newman, McGraw Hill Education Pvt Ltd, 2016

Reference Books:
 Compensation and Reward Management, 3e, B.D. Singh, Excel Books,2017
 Compensation Management, 2e, Bhattacharya and Nilanjan, Excel Books,2014
 Compensation management in knowledge based world, 10e, Richard & Henderson, Pearson Education, 2007

Journals:

Links to websites:
Evaluation Scheme:
 Class Participation 20 %
 Presentations 20 %
 Quizzes 20 %
 Term- End Exam 40 %
Total 100 %

Session Plan:

Session Topics Learning Outcomes Pedagogical Tool Textbook Chapters &

Readings
1 Introduction to Comprehend total Case: Textbook :
Compensation and returns concept and Glamorous Chapter 1
benefits, Total Returns will appreciate the Internships? Or
concept need for such House Elves? –
compensation Textbook –
Page: 21-22
2 Internal Alignment, Results in Class Discussion Textbook:
Internal structures comprehending the Chapter 3
need for internal
alignment and will
be able to work
towards achieving
alignment
3 Job/Work analysis in Results in Case: Textbook:
developing analyzing job/work The customer Chapter 4
compensation system and the basis for service agent –
compensation Textbook - page-
fixations. 96-100
4 Job Evaluation in Results in Case: Textbook:
developing analyzing and Job Evaluation at Chapter 5
compensation system evaluating Job Whole Foods
evaluation for -Textbook – page
arriving -125-129
compensation
fixations.
5 Designing Pay levels, Gain competencies Discussions & Class Textbook:
Mix, and Pay in designing pay Exercises on pay Chapter 8
Structures levels and structures
structures
6 Pay for performance, Gain competencies Discussions & Textbook:
Variable pay, design in designing of Article Chapter 10
& implementation variable pay and Article:
pay for Research: How Incentive
performance Pay Affects Employee
systems Engagement, Satisfaction
and Trust Reprint
# H03IE4-PDF-ENG
Published 2017
HBS
7 Pay for performance, Gain competencies Case:
Variable pay, design in designing of Do Financial
& implementation variable pay and Incentives drive
pay for company
performance performance?
 systems #2565BC-PDF-ENG
Published 2006
HBS
Pay for performance, Gain competencies Discussions and Article:
8 Variable pay, design in designing of Article Performance Based Pay
& implementation variable pay and for Executives Still Works
pay for # H02OE9-PDF-ENG
performance Published 2016
systems HBS
9 Benefits Analyse the Discussions and Textbook:
administration – requirements for class Exercises on Chapter 12
benefit planning, benefits benefit plan &
design issues, administration and design
administration issues. will get exposure in
designing various
benefits
10 Statutory benefits Analyse the Case: Textbook:
administration – , requirements for Love Inc. – Chapter 13
social security, statutory benefits Textbook – page
medical care , Safety administration and 417-418
will get exposure in
designing various
benefits
11 Profit sharing and Comprehend the Case: Textbook:
ESOP, Equity, fairness need for Burger Boy – Chapter 9 & 10
- Implications, administration of Textbook – page
retention of employees profit sharing & 249-251
ESOPs and its
implications and
impact on retention
12 Government and legal Results in Discussions Textbook:
issues in appreciating for Chapter 17
compensation, the need in
statutory benefits following Govt.
norms and
administering
statutory benefits
13 Government and legal Results in Case: Textbook:
issues in appreciating for Grass Cutter vs- Gas Chapter 17
compensation, the need in Cutter –
statutory benefits following Govt. Textbook – page-
norms and 529
administering
statutory benefits
14 International Pay Results in exposure Case: Textbook:
systems of international pay Coke and IBM – Chapter 16
related issues and Textbook – page-
implications on 491 -493
organizations
15 Preparation of Pay Results in exposure Discussions & General info on
Slip- salary structure - in preparation of Exercises Companies Pay Structure
CTC components and Pay slip and salary
their implications structure
16-17 Computation of Results in Discussions and General latest info on –
taxable income – TDS appreciating the Exercises on Tax Laws of A.Y.
– responsibility of responsibility of Computation of
employer employer in tax taxes
computations in
 salary and will be
able to handle TDS
related issues
18 Executive /Managerial Develop the Case: Textbook:
Computation – issues components of pay Compensation of Chapter 14
– implications and benefits of special groups- text Article:
senior executives book – page: 443-44 A Short History of Golden
Parachutes.
# H035W3-PDF-ENG
Published 2016
HBS
19 Flexible compensation Results in Case:
and benefits - the comprehending the Flexible
future of need for having Compensation and
compensation flexible Benefits – Why
compensation and Variety will rule and
benefits plan and how to leverage it
ways to do it #2252BC-PDF-ENG
Published 2006
HBS
20 Presentations Student Presentations -----
presentations on
various issues
under
compensation
benefits in a
professional way

Please Note: Compensation and Benefits course has to be covered/delivered with the combination of
class room exercises involving calculations and with some Cases for offering better insights of the
course and its content. Hence provision for both has been made.