ACADEMIC PLAN*
SESI 3/12/34
SEMESTER AUGUST 2012
COMPENSATION MANAGEMENT (PHS 3153)
MONTH
August 2012
DATE
1st week
TOPICS
REMARK
Introduction
 Subject
 Assessment
 Group project paper
 Class & Academic Policies
Part 1 – Introducing the Pay Model and Pay Strategy
Pay Model
 Compensation: Definition
 Forms of Pay
 A Pay Model
2nd week
Introducing the Pay Model and Pay Strategy (cont.)
Strategy – The Totality of Decisions
 Similarities and Differences in Strategies
 Strategic Choices
 Support Business Strategy
 The Pay Model Guides Strategic Pay Decisions
 Developing a Total Compensation Strategy: Four Steps
 Source of Competitive Advantage: Three Tests
 “Best Practices” versus “Best Fit”
Chapter 1
Chapter 2
Chapter 1 & 2
Quiz 1
3rd week
Part 2 – Internal Alignment Determining the Structure
Defining Internal Alignment
 Compensation Strategy: Internal Alignment
 Structures Vary Among Organizations
 What Shapes Internal Structures?
 Strategic Choices in Designing Internal Structures
 Guidance from the Evidence
 Consequences of Structures
Job Analysis
 Structures Based on Jobs, People, or Both
 Job-based Approach: Most Common
 Job Analysis Procedures
 What Information Should Be Collected?
 How Can the Information Be Collected?
 Job Descriptions Summarize the Data
 Job Analysis: Bedrock or Bureaucracy?
 Judging Job Analysis
Chapter 3
Chapter 4
4th week
Internal Alignment Determining the Structure (cont.)
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Job-Based Structure
Person-Based Structures: Skill Plans
“How to”: Skill Analysis
Person-Based Structures: Competencies
“How to”: Competency Analysis
One More Time: Internal Alignment Reflected in Structures
Administering the Plan
Evidence of Usefulness of Results
Bias in Internal Structures
The Perfect Structure
Quiz 2
5th week
Chapter 3 & 4
Internal Alignment Determining the Structure (cont.)
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Person-Based Structures.
Skill plans:
Types of skill plan
Purpose of the skill-based structure
Competency based structure – Approaches & Purpose
Administering the plan
Biases in the internal structures
Test 1
6th week
Chapter 5
Chapter 6
Chapter 5 - 6
Part 3 – External Competitiveness: Determining the Pay Level
Defining Competitiveness
 Compensation Strategy: External Competitiveness
 What Shapes External Competitiveness?
 Labor Market Factors
 Product Market Factors and Ability to Pay
 Relevant Markets
 Competitive Pay Policy Alternatives
 Consequences of Pay-Level and Mix Decisions
Designing Pay Levels, Mix, and Pay Structures
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Major Decisions
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Specify Competitive Pay Policy
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The Purpose of a Survey
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Select Relevant Market Competitors
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Design the Survey
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Interpret Survey Results & Construct a Market line
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From Policy to Practice: The Pay-Policy Line; Grades and Ranges;
Broad Banding
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Grades and Ranges; Broad Banding
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Balancing Internal and External Pressures: Adjusting the Pay
Structure
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Market Pricing
Chapter 7
Chapter 8
7th week
Part 4 – Employee Contributions: Determining Individual Pay
Chapter 10
Pay-for-Performance Plans
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What Is a Pay-for-performance Plan?
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Does Variable Pay Improve Performance Results? The General
Evidence
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Specific Pay-for-performance Plans: Short Term
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Team Incentive Plans: Types
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Explosive Interest in Long-term Incentives
Quiz 3
8th week
Part 5- Employee Benefits
The Benefits Determination Process
 Why the Growth in Employee Benefits?
 Value of Employee Benefits
 Key Issues in Benefit Planning, Design and Administration
 Components of a Benefits Plan
 Administering the Benefits Program
Benefit Options
 Legally Required Benefits
 Retirement and Savings Plan Payments
 Life Insurance
 Medical and Medically Related Payments
 Miscellaneous Benefits
 Benefits for Contingent Workers
9th week
10th week
Chapter 7 & 8
Part 6 – Extending the System - Compensation of Special Groups
 Who are the special groups
 Compensation strategy for special groups
Test 2
Chapter 12
Chapter 13
Chapter 12 & 13
Extending the System (cont.)
Union Role in Wages and Salary Administration
 The impact of union in wages
 Union and alternative reward systems
Chapter 15
International Pay Systems
 Managing Variations: The Global Guide
 The Social Contract
 Culture
 Trade Unions and Employee Involvement
 Ownership and Financial Markets
 Managerial Autonomy
 Comparing Costs
 Comparing Systems
 National Systems-Comparative Mind-Set
 Strategic Market Mind-Set
 Expatriate Pay
 Borderless WorldBorderless Pay? Globalists
Chapter 16
11th week
Part 7 – Managing the System
Government and Legal Issues in Compensation
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Government as Part of the Employment Relationship
Fair Labor Standards Act of 1938
Prevailing Wage Laws
Pay Discrimination: What is It?
Quiz 4
12th week
13th week
Revision
14th week
Revision
* Subject to change
Chapter 15 & 16
Part 7 – Managing the System (cont.)
Management – Making it Work
 Managing Labor Costs
 Control Salary Level: Top Down
 Control Salary Level: Bottom up
 Managing or Manipulating?
 Embedded Controls
 Communication: Managing the Message
 Pay as Change Agent
 Structuring the Compensation Function
 Controls as Guidelines: Let (Thoughtful) Managers Be Free
December
Chapter 17
FINAL EXAM
Chapter 18