Compensation and Benefits
Section 001 - Spr 2007
Faculty Information
Instructor: Michael (Mike) Davis
VP, HR, US Retail and Corporate
General Mills
763-293-2600 (work)
Email: mdavis2@csom.umn.edu (school)
mike.davis@genmills.com (work)
Office hours: by appointment
I will generally get to CSOM at 3 PM and will be available for questions or discussion
_________________________________________
TA: Michelle Steadman
Email: MSteadman@csom.umn.edu
Office hours: TBD
Course Description
Compensation and benefits (C&B) systems are an integral part of a company’s human resources strategy and programs.
C&B is also central to the company’s overall employment value proposition, which allows it to attract and retain a
workforce. C&B costs are generally significant, at times exceeding the total cost of raw materials for manufacturing.
C&B is usually an important part of the company’s performance management system, providing a key link between
business strategy and operating plans, and how employees at all levels are motivated and paid.
Like many other skill sets that must be mastered by a seasoned HR professional, C&B is part art and part science.
There are many ways to do it right and just as many ways to do it wrong. The C&B system should logically meld to the
industry, operating structure, strategy and culture of the company; therefore, it will vary from company to company.
However, there are many operating principles, tools and techniques, regulations, and conventional and best practices that
are used across industries, companies and country borders.
During this semester you will learn about the elements in a typical compensation & benefits program, and how
companies use C&B as an integral part of a broader total rewards system. The class will be taught very practically, from
an HR practitioner perspective.
Required Text/Materials
Compensation -- Eighth Edition -- by George Milkovich and Jerry Newman
Grading Distribution
60%
4 Tests
20%
Individual Research Paper
20%
Group Project Paper
Academic Policies
MAHRIR Policy
The Carlson School defines academic misconduct as any act by a student that misrepresents the student's own academic work
or that compromises the academic work of another. Scholastic misconduct includes (but is not limited to) cheating on
assignments or examinations, plagiarizing, i.e., misrepresenting as one's own work any work done by another, submitting the
same paper, or substantially similar papers, to meet the requirement of more than one course without the approval and consent
of the instructors concerned, or sabotaging another's work. Within this general definition, however, instructors determine what
constitutes academic misconduct in the courses they teach. Students found guilty of academic misconduct face penalties
ranging from lowering of the course grade or awarding a grade of F or N for the entire course, to suspension from the University.
University Policy on Academic Misconduct
Accommodations for Students with Disabilities
The University of Minnesota is committed to providing all students equal access to learning opportunities. Disability Services is
the campus office that works with students who have disabilities to provide and/or arrange reasonable accommodations.
Students registered with Disability Services, who have a letter requesting accommodations, are encouraged to contact the
instructor early in the semester. Students who have, or think they may have, a disability (e.g. psychiatric, attentional, learning,
vision, hearing, physical, or systemic), are invited to contact Disability Services for a confidential discussion at 612-626-1333
(V/TTY) or at ds@umn.edu. Additional information is available at the DS website http://ds.umn.edu .
Course Schedule
Class
1
2
Date
January 17
January 22
Topic(s)
Introduction to Compensation & Benefits
More on Total Rewards & Internal Alignment of Jobs
Reading
M&N Chapters 1&2
M&N Chapter 3
3
4
January 24
January 29
5
January 31
6
7
8
9
February 5
February 7
February 12
February 14
10
11
12
13
14
15
16
17
18
19
20
21
February 19
February 21
February 26
February 28
March 5
March 7
March 12
March 14
March 19
March 21
March 26
March 28
22
23
24
25
26
27
28
29
April 2
April 4
April 9
April 11
April 16
April 18
April 23
April 25
30
31
April 30
May 2
Discussion of Individual Research Paper
Job Analysis & More on Salary Structures
Job Evaluation
Discussion of Group Project
Person-Based Structures & Defining
Competitiveness
Market Pricing, Surveys and Use of Survey Data
Exam 1
Pay for Performance I - Introduction
Guest Lecturer (BAE Systems) & Pay for
Performance II - Behaviorial Theory
Pay for Performance III - Performance Measurement
Pay for Performance IV - Short Term Incentives
Pay for Performance V - Long-Term Incentives
Exam 2
Performance Management & Non-Monetary Rewards
Benefits I - Introduction
NO CLASS - Spring Break
NO CLASS - Spring Break
NO CLASS - Work on your paper!
NO CLASS - Work on your paper!
Benefits II - Health Benefits
Benefits III - Retirement & Savings Plans
GUEST - Bob Leone, Hewitt Associates
INDIVIDUAL PAPER DUE
Extra Session to Review Benefits
Exam 3
Total Reward Strategy
Executive Compensation I - Introduction
Executive Compensation III - GE CC Meeting
Executive Compensation IV - Critics Perspective
International C&B GUEST Stephanie Lilak
Special Compensation Issues
GROUP PROJECT DUE
Public Policy Issues
Exam 4
M&N Chapter 4
M&N Chapter 5
M&N Chapters 6&7
M&N Chapter 8
None
M&N Chapter 9
M&N Chapter 10
None
None
None
None
M&N Chapter 11
M&N Chapter 12
Enjoy
Enjoy
M&N Chapter 13
None
None
None
M&N Chapter 2
M&N Chapter 14
GE Materials
Sears Case
M&N Chapter 16
None
None
We're Done!