Compensation and Benefits Syllabus

Course Code: MU0015

Course Title: Compensation and Benefits (4 Credits)




Course Contents


Unit 1

Compensation management – An Introduction: Compensation Management, Compensation and Non-compensation Dimensions, 3-P Concept in Compensation Management, Compensation as Retention Strategy, Compensation for Special Groups, Significant Compensation Issues


Unit 2

Job Evaluation, Grading and Compensation Structure: Concept of Salary Structure, Salary Progression, Methods of Payment, Limitations of Job Related Compensation, Competency based Compensation (Broad pay bands and 360 degree feedback)


Unit 3

Wages and Salary Administration at Macro (National) Level: Wage Concept, Wage Policy, Institutional Mechanisms for Wage Determination, Pay Commission, Wage Boards, Public Sector Pay Revision, ILO and Collective Bargaining, Union Role in Wage and Salary Administration


Unit 4

Job Evaluation: Compensation Strategy at Micro Level, Concept of Equity, Job Evaluation - Methods of job evaluation and System of job evaluation, Process of Job Evaluation, Problems Involved in Job Evaluation


Unit 5

Incentive Schemes: Pay for Performance: Types of Incentive Schemes, Wage Incentive Plans, Pre-requisites of Effective Incentive Schemes, Merits and Demerits of Incentives, Pay for Performance Plans


Unit 6

Benefits and Services: Concept and Nature of Benefits, Classification of Employee Benefits, Employee Benefit Programs, Long term Incentive plans, Strategic Perspectives on Benefits, Factors Influencing Choice of Benefit Program, Administration of Benefits and Services, Employee Services – Designing a Benefit Package


Unit 7

Tax Planning: Concept of Tax Planning, Role of Tax Planning in Compensation Benefits, Tax-efficient Compensation Package, Tax Implications of Employee Compensation Package to Employer, Fixation of Tax Liability, Salary Restructuring, Recent Trends in Taxation


Unit 8

Voluntary Retirement Scheme: Concept of Voluntary Retirement Scheme (VRS), Approaches to Deal with Workforce Redundancy, Costs and Benefits to the Company, VRS for Public Sector Employees, The Worker Adjustment and Retraining Notification Act (WARN)


Unit 9

Compensation Strategy: New Thinking for the New Millennium: Pay the Person, Reward Excellence, Individualising the Pay System, Organisational and External Factors Affecting Compensation Strategies, Compensation Strategies as an Integral Part of HRM, Compensation Policies


Unit 10

Managerial Remuneration: Managerial Remuneration – Concept and Elements, Executive Compensation: Methodology, CEO-to-worker pay ratio, Rewarding – A New Approach, Remuneration Ceilings, Remuneration Ceilings under Section XIII, Benchmark Compensation Package as per the Industry Standards


Unit 11

Performance Linked Compensation: Performance management, Performance Appraisal and Measurement, Pay for Performance Plans, Balancing of Internal and External Equity


Unit 12

Pay Structures: Performance Based and Pay Based Structures, Designing Pay Structures, Comparison in Evaluation of Different Types of Pay Structures, Designing Pay Ranges and Bands, Significance of Factors Affecting Pay Levels


Unit 13

Rewards & Recognition: Concept of Reward Management, Developing Reward Policies, Reward Strategy, Developing Total Reward Approach, Reward Management in Service Sector, Total Reward Framework of Service Industries in India, Factors affecting Reward Management Policies in Service Sector, Process of Designing a Successful Reward Strategy


Unit 14

Reward Management in Service Sector at Micro Level: Concept of Reward System in Service Organisations, Elements of Reward System, Designing Reward Systems, Recognizing and Rewarding Service Excellence, Reward Strategy and Performance Management in Insurance


Unit 15

International Compensation: Expatriate Compensation and its Objectives, Elements of Expatriate’s Compensation Package, Problems in Compensation Management