HRM 465-565 Section B001
Compensation Management
(3 Credit Hours)
BLACK HILLS STATE UNIVERSITY
Spring 2010
COURSE SYLLABUS
Course Meeting Time and Location
Tuesday-Thursday 2 p.m. – 3:15 p.m., Meier Hall, Room 205
Instructor’s Contact Information
Name: Dr. David Scarborough
Office Location: Meier Hall, Room 334
Office Hours: Monday through Thursday 10am – 11
BHSU Phone: 605-642-6159
E-Mail Address: davidscarborough@bhsu.edu
Course Description
Compensation Management is a specialization in the field of Human Resources that
addresses how organizations use financial and other forms of pay to attract, retain and
reward employees. In most organizations, compensation costs are the single largest
line item expense on a balance sheet. As a result, HR practitioners responsible for
managing wage, salary and benefit administration are required to have interdisciplinary
training. Course content introduces important concepts from various fields including
labor economics, organizational psychology, financial management and actuarial
science. The administrative systems used to manage compensation are surveyed in
the context of underlying theory and major regulatory, competitive and ethical
constraints on pay practices.
Course Prerequisites
HRM 417 Human Resource Management
Description of Instructional Methods
The course consists of textbook readings; supplemental readings; online supplements,
notes, and PowerPoint slides.
Course Requirements
Required Text and Materials
Compensation, 8th Edition by George Milkovich, Cornell University and Jerry Newman,
State University of New York, BUFFALO. Hardcover, 648 pages, ©2005,
ISBN:0072875437
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Course Goals and Student Learning Outcomes
The goal of this course is to provide students with an orientation to compensation
practices in the United States. Beginning with common organizational procedures such
as job analysis and job evaluation, the administrative mechanics of pricing jobs for
internal equity and external labor market competitiveness is described. Different
models of pay administration are discussed in the context of the motivational theories
upon which they are based. Indirect compensation programs such as health and
retirement benefits are introduced. Upon completion of the course, the student will be
able to:
1. Describe how compensation strategies vary and pay practices are administered in
modern organizations.
2. Understand the broad legal framework of regulations governing compensation
practices in the United States.
3. Develop an understanding of job analysis and job evaluation as it relates to setting
wage rates, establishing fair pay practices and allocating rewards in a competitive
labor market.
4. Evaluate compensation strategies and procedures appropriate to different types of
organizations and workforce populations.
5. Identify and define a wide range of compensation practices used to attract, retain,
motivate and reward organizational constituents.
Evaluation Procedures and Guidelines for Course Requirements
Assessment
Three examinations will be administered during the semester. Grading on exams will
reflect the degree to which the student is able to correctly respond to examination
questions covering the assigned readings. Percent of correct answers on all tests will
be equally weighted and averaged to obtain a mean score constituting 75% of the final
course score.
Research Paper
In addition, a research paper based on individual research will be assigned. Students
will select an area of interest related to a specific compensation practice, law or
regulatory issue, research study, motivational theory or other topic covered in the text.
Before beginning this assignment, students must submit a typed, one-paragraph
description of the compensation issue to be analyzed for review with the instructor.
Instructor approval of the research paper topic is mandatory and any paper submitted
without prior authorization will not be graded.
Students will prepare a 10 to 15 page written analysis of the subject matter. The
purpose of this paper is to apply course learning to the analysis, interpretation and
evaluation of the topic. The research paper should include the following components:
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1. Problem Definition. This short section (one to two pages) will summarize the
problem area or issue covered in your paper and explain why this particular practice
or issue is significant. (This section is worth a possible 20 points.)
2. History and Background. This section of your paper should place the topic into
context. Where and when did it originate? What do expert sources say about
environmental, economic or legal factors that shaped how the issue has evolved?
(This section is worth a possible 20 points.)
3. Current Status. How is this subject viewed by leading authorities today? What
empirical evidence, legal case law or documented trend supports these
conclusions? How common or rare is the phenomenon? How has it changed over
time? (This section is worth a possible 20 points.)
4. Evaluation and Future Implications. This section should synthesize facts, evidence
and ideas presented previously into a defensible position taken by the writer on the
research topic. Awareness of counter point opinion or contradictory evidence should
be identified and addressed. What is likely to happen in the future regarding this
topic? Discuss and support your rationale and position. (This section is worth a
possible 20 points.)
5. References. Include a list of references that includes all references cited in your
paper. Your list of references should include at least eight outside references, with
at least four references from peer-reviewed publications. The list of references does
not count towards the page limit. (This section is worth a possible 20 points.)
Note: The paper must be typed, double spaced, using 12 point font with one-inch
margins and should conform to the MLA style guide. Poorly formatted writing or
citations and grammatical and spelling errors will result in point loss in the sections
where they are observed. All point totals for the completed research paper will be worth
a possible 100 points, which will be averaged with the three exam scores making up
25% of the final grade. Letter grade assignment will be based on the following scale:
Grading Scale
A – Superior
B – Above Average
C – Average
D – Below Average
F – Failing
(90 – 100%)
(80 – 89%)
(70 – 79%)
(60 – 69%)
(0 -- 59%)
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Course Outline/Schedule
Date
Assignment/Activity
1-14-10
Review course syllabus and course introduction
Read Chapter 1: “The Pay Model”
Read Chapter 2: “Strategy: The Totality of Decisions”
1-19-10
The Pay Model
1-21-10
No class-Mad Scientist Conference
1-26-10
Strategic Perspectives
Read Chapter 3: “Defining Internal Alignment”
1-28-10
Defining Internal Alignment
Read Chapter 4: “Job Analysis”
2-2-10
No Class- HSG Conference
2-4-10
No Class – HSG Conference
2-09-10
Job Analysis
Read Chapter 5. “Job Evaluation”
2-11-10
Job Evaluation
Review for Exam #1 (Chapters 1-5)
2-16-10
Exam 1
Assignment Due: Research paper topic proposal
2-18-10
Exam #1
Read Chapter 6 “Person-Based Structures”
2-23-10
Person-Based Structures
Read Chapter 7: Defining Competitiveness
3-02-10
Defining Competitiveness
Read Chapter 8: “Designing Pay Levels, Mix and Pay Structures”
3-04-10
Designing Pay Levels, Mix and Pay Structures
Assignment Due: Research paper topic approval
Read Chapter 9 “Pay for Performance: The Evidence”
3-9-10
Spring Break
3-11-10
Spring Break
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Date
Assignment/Activity
3-16-10
Pay for Performance
Read Chapter 10 “Pay for Performance Plans”
3-18-10
Pay for Performance Plans
Read Chapter 11 “Performance Appraisals”
3-23-10
Performance Appraisals
3-25-10
Review for Exam #2 over Chapters 6-11
3-30-09
Exam #2
Read Chapter 12 “The Benefit Determination Process”
4-1-10
Benefit Determination Process
Read Chapter 13 ”Benefit Options”
4-6-10
Benefit Options
Read Chapter 14: “Compensation for Special Groups”
4-8-10
No Class- - SIOP Conference
4-13-10
Compensation for Special Groups
4-15-10
Read Chapter 17 “Government and Legal Issues in Compensation
Reading Assignment _________________
4-20-10
Government and Legal Issues in Compensation
Read Chapter 18 “Management: Making It Work”
4-22-10
Management: Making it Work
4-27-10
Last Chance Working Paper Session
Review for Final Exam over Chapters 13, 14, 17 and 18
4-29-10
Research Papers Due
5-6-10
Final Exam 11:30 AM-1:00 PM
*Note: This course syllabus may be adjusted and/or corrected at the discretion of
the instructor.
Attendance Policy
Attendance at all class sessions is expected. No make-up examinations will be given for
students who miss class due to unexcused absences. Students will be allowed to make
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up graded work if an absence is due to participation in university-sponsored activities,
provided prior notification of the impending absence has been given to the instructor.
Other students will be allowed to make up graded work only if the instructor has been
notified in advance and the absence has been pre-approved by the instructor. NOTE: Emailing the instructor a few minutes prior to class does not constitute an excused
absence.
Academic Honesty
Acts of academic dishonesty, including: (1) the use or giving of any unauthorized
assistance in taking quizzes, tests, or examinations; (2) the use of sources beyond
those authorized by the instructor in writing papers, preparing reports, solving problems,
or carrying out other assignments; (3) acquisition, without permission, of tests or other
academic material belonging to a member of the institutional faculty or staff; or (4)
plagiarism will result in disciplinary sanctions that could result in the student receiving a
failing grade for the assignment or the course, or more severe disciplinary sanctions
imposed by the university. Plagiarism is defined as: “the use, by paraphrase or direct
quotation, of the published or unpublished work of another person without full and clear
acknowledgement consistent with accepted practices of the discipline; or the
unacknowledged use of materials prepared by another person or agency engaged in
the selling of term papers or other academic materials.” Note: plagiarism also includes
materials obtained from Internet sites. Source: Student Handbook
Make-up Policy
If you know that you will be absent at the time an exam is to be administered, please
arrange to take the exam prior to the exam date listed in the syllabus. In case of illness,
notification needs to be given prior to the exam. ALL WRITTEN ASSIGNMENTS ARE
DUE AT 2:00 P.M. ON THE DATE LISTED IN THE “TENTATIVE COURSE
OUTLINE/SCHEDULE” SECTION OF THIS SYLLABUS. NO LATE ASSIGNMENTS
WILL BE ACCEPTED UNLESS PRIOR ARRANGEMENTS HAVE BEEN MADE WITH
THE COURSE INSTRUCTOR.
ADA Statement
Reasonable accommodations, as arranged through the Disabilities Services
Coordinator, will be provided students with documented disabilities. Contact the BHSU
Disabilities Services Coordinator at 642-6099 (Jacket Legacy Room in the Student
Union) for more information.
Freedom in Learning
Under Board of Regents and University policy student academic performance may be
evaluated solely on an academic basis, not on opinions or conduct in matters unrelated
to academic standards. Students should be free to take reasoned exception to the data
or views offered in any course of study and to reserve judgment about matters of
opinion, but they are responsible for learning the content of any course of study for
which they are enrolled. Students who believe that an academic evaluation reflects
prejudiced or capricious consideration of student opinions or conduct unrelated to
academic standards should contact the chair of the department in which the course is
being taught to initiate a review of the evaluation.
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Incompletes
Except for the conditions stated below, a grade of incomplete will not be approved by
the Dean of the College of Business and Technology.
1. A student must have completed approximately 75% of the required work in a
course, including homework, exams, projects, and papers.
2. A student must have a valid and documented medical condition or personal
situation that prevents her or him from completing the remaining coursework by
the end of the semester.
Substandard performance up to the time of the request is NOT a valid reason for giving
an incomplete.
Computer Use Statement
Students using state-provided computer hardware, software, and services are expected
to use such items for educational purposes only and in an efficient, ethical, and lawful
manner.
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