Compensation & Benefits
Course Code : HR653
School of Business and Economics
Program
MBA
Semester
Fall 2015
Credit Hours
03
Management, Organization Behaviour, Human Resource
Mgt
Mr. Sami Ullah Bajwa, Assistant Professor
sami.bajwa@umt.edu.pk Room No.5, Department of
Management (Business Administration)
Pre requisites
Resource Person
Contact information
Course Description
Compensation represents both the intrinsic and extrinsic rewards employees receive for
performing their jobs. Together, both intrinsic and extrinsic compensation describes a
company’s total compensation level. Effective compensation systems achieve three key goals.
They provide a firm internal consistency, market competitiveness, and means for recognizing
individual achievement. An internally consistent compensation system clearly defines the
relative value of each job among all jobs within a company, providing an objective justification
for their differences in pay. Market competitive pay systems allow firms to attract and retain the
best employees by setting pay levels consistent with a firm’s competitive strategies. Finally, a
compensation system that recognizes individual achievement can boost both employee morale
and firm performance by effectively rewarding key contributors. This course is designed to
provide students with concepts, tools and experiential exercises so that they are able to
improve and develop compensation systems, which achieves the abovementioned goals.
Learning Objectives
On completion of this course, students will be able to understand:


The concept of Strategic Compensation and Benefits and its significance for survival in
today’s dynamic business environment
To comprehend the foundations and framework of Strategic Compensation and
Benefits and understand how effective compensation systems facilitates survival
and effectiveness of organizations in turbulent business environments
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


Understanding three key goals of Compensation Systems, including internal
consistency, market competitiveness, and means for recognizing individual
achievement.
Learning Tools and their application along with critical analysis of the contexts of
organizations with regards to Compensation and Benefits
Application of learned concepts and tools in Pakistan’ s business environment
Sr.
Course Learning Objectives
Link with Program Learning Objectives
1
To learn the concept of Strategic Compensation
and Benefits and its significance for survival in
today’s dynamic business environment
To inculcate business knowledge and
analytical skills in graduates to think decisively
in order to develop innovative solutions to
problems in a business environment
2
To comprehend the foundations and framework
of Strategic Compensation and Benefits and
understand how effective compensation systems
facilitates survival and effectiveness of
organizations in turbulent business environments
To steer an organization through the difficult
and turbulent global environment and enable
the development of an implementable
business plan
3
Understanding three key goals of Compensation
Systems, including internal consistency, market
competitiveness, and means for recognizing
individual achievement.
To provide a progressive and structured
framework to graduates that enables them in
developing and applying knowledge set of
critical, social responsibility and ethical
evaluation
4
Learning Tools and their application along with
critical analysis of the contexts of organizations
with regards to Compensation and Benefits
To craft graduates’ expertise in order to
increase their resourcefulness
5
Application of learned concepts and tools in
Pakistan’ s business environment
To develop practical knowledge and
contemporary professional capabilities
Textbooks &Supplies
Strategic Compensation: A Human Resource Management Approach (8th Edition)
By: Joseph J. Martocchio
Prentice Hall 2014
Counseling Time
Monday
2:00 PM to 4:00 PM
Thursday
2:00 PM to 5:00 PM
Friday
2:00 PM to 5:00 PM
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Teaching & Learning Methodology
Teaching methodology for the course is designed to augment participants’ learning through
1.
2.
3.
4.
5.
Lectures and discussions
Case discussions
Presentations
Videos
Experiential exercises
Tests and Grading
COMPONENT
WEIGHT
DESCRIPTION
FINAL EXAM
25%
Constitutes topics covered throughout the course. The Exam will be
subjective type.
MID TERM
15%
Constitutes topics covered till session No.7 The Exam will be solution
based.
CLASS
PARTICIPATION
10%
Positive, healthy and constructive class participation will be monitored
for each class. Quality class participation endures questioning and
discussions which enhance learning opportunities.
QUIZ (N-1)
15%
Four quizzes (MCQs + Subjective) will be conducted. Three best quizzes
will be counted in evaluation.
CASE STUDIES
10%
Four case discussions, followed by presentations, will be conducted.
CLASS ACTIVITY
5%
Each group is required to bring at least 1 laptop for 2 class activities.
PROJECT
10%
Will be submitted on group basis. Further details about project will be
provided through moodle.
ASSIGNMENTS
10%
Three Assignments will be given on individual basis
Total
100%
The participant should get registered and regularly visit the online Moodle subject forum and
prepare/review/analyze the uploaded files, articles, cases on weekly basis. No
relaxation/substitution will be given for quiz, assignments, presentations and case studies.
Participants are required to adhere to the punctuality policy and come in the lecture room
before the start of the designated time. Students are encouraged to visit the office of resource
person during counseling hours for clarifying any confusions or resolving any problems
pertaining to the subject matter. They are also strongly encouraged to contact the resource
person via email for any confusions or ambiguities.
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Calendar of Activities
Sr.
Topics
1.
Introduction
1. Knowing more about each other and scope of
course, Course outline and Learning Methodology
2. Moodle registration
2
Strategic
Compensation
1. Describe compensation and summarize evolution
of compensation practices
2. Discuss differences between strategic and tactical
compensation.
3. Identify the stakeholders of the compensation
and summarize their stake in the work
compensation professionals perform.
Chapter 1
Lecture and
Discussion
3
Essentials of
Compensation
1. Name and summarize the goals of compensation
professionals.
Chapter 1
Assignment
1 due
4
Contextual
Influences on
Compensation
Practice
1. List and discuss laws that apply to compensation
tactics
2. Explain how labor unions influence compensation
practices
Chapter 2
Quiz 1
Class
Activity
Building Internally
Consistent
Compensation
Systems
1. Explain the concept of internally consistent
compensation systems.
2. Summarize the practice of job analysis.
3. Describe the practice of job evaluation.
4. Explain how internally consistent compensation
systems and competitive strategy relate to each
other.
Chapter 6
Case 1
Describe seniority and longevity pay practices.
List elements of merit pay.
Understand performance appraisal methods.
Explain how compensation professionals can
strengthen the pay-for-performance link
5. Discuss limitations of merit pay programs.
Chapter 3
Quiz 2
Assignment
2 due
1. Provide a contrast between incentive pay
methods and traditional pay methods.
2. List three categories of incentive pay plans.
Discuss the advantages and disadvantages of
group incentive plans.
3. List and summarize five factors in the design of
incentive pay programs.
Chapter 4
Case 2
5
6
Traditional Bases
for Pay
Learning objective of this topic
1.
2.
3.
4.
7
Incentive Pay
8
Mid Term (Scenario based)
Readings
Activity
Course
Outline
Lecture and
Discussion
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Sr.
Readings
Activity
1. Explain the concept and practice of personfocused pay.
2. Summarize the varieties of person-focused pay
programs.
3. Contrast person-focused pay with job-based pay.
4. Provide an explanation of the advantages and
disadvantages of person-focused pay plans.
Chapter 5
Lecture and
discussion
Discretionary
Benefits
1. Give an overview of discretionary benefits.
2. List the three broad components of discretionary
benefits.
3. Explain the benefits and costs of discretionary
benefits.
Chapter 9
Case 3
Building Market
Competitive
Compensation
Systems
1. Explain the concept of market-competitive
compensation systems
2. Discuss how compensation professionals
integrate job structures with external market pay
rates.
3. Present the basic concepts of two compensation
policy types: pay mix and pay level.
Chapter 7
Quiz 3
Assignment
3 due
12
Legally Required
Benefits
1. Discuss Government of Pakistan’s enacted
employee benefits.
2. Summarize main components of legally required
benefits.
3. Indicate the main benefits and costs of legally
required benefits.
Chapter
11
13
Building
Structures that
Recognize
Employee
Contributions
1. Explain the concept of pay structures.
2. Specify and explain the five steps necessary to
construct a pay structure.
3. Discuss considerations in designing merit pay
systems and person-focused pay program design.
Chapter 8
Case 4
14
Challenges Facing
Compensation
Professionals
1. Explain the impact of economic recession and
underemployment on compensation practice
2. Describe the influence of changing workforce
demographics on employee benefits practice.
Chapter
16
Quiz 4
9
10
11
Topics
Person-Focused
Pay
Learning objective of this topic
Class Activity
2
(Bring
laptops)
15Fin Final Project Presentations
Note: In each class context of Pakistan, with regard to compensation and benefits, will be discussed.
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