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SHRM&EC-P10
PGDM : 2010-12 (Term-IV)

Strategic HRM & Employee Compensation
Prof. S.S. Ganesh & Prof. PNSV. Narasimham*
Course Outline

Course Description: Organizations which used compensation systems as a panacea for people management problems in the past have started appreciating the importance as well as limitations of compensation policies and practices as complementary resources as they have limited ability to provide competitive advantage in isolation. Further, in the global economy, attracting, motivating and retaining knowledge workers through pay alone is next to impossible as the value system of knowledge workers are not purely financial.

Hence, more and more organizations are emphasizing upon the linkages between the business practices and pay systems which are aligned with various HR strategies and practices like Recruitment and Selection, Learning and Development, Performance Management, Career Management, and Employee Engagement practices. Therefore, the purpose of this course is to provide a distinctive approach to employee compensation as a strategic human resource management function in order to prepare people managers who would learn from the varied experiences of organizations from different industries.

Course Objectives: As a result of succeeding in this course, participants will be able to achieve the following the objectives.

· Decode the underlying Compensation Philosophies of different organizations as why they value, what they value, and how they value the contributions of employees from different functions and levels across in the organizations.

· Understand the nature and scope of Transactional Returns in comparison with the impact of Relational Returns on employee behavior and performance in creating high performance work culture. · Recognize the significance of the basic issues of compensating human resources by creating Equitable Pay Systems in organizations.

· Learn the principles, method and techniques of designing and implementing Market Competitive Compensation Systems through benchmarking surveys and the advantages and limitations of benchmarking best practices. · Create a Pay Structure for different occupational groups by defining Pay Levels and Pay Forms taking into consideration of internal equity and external competitiveness. · Understand the Wage Ecosystem (taxation, flexible benefits, direct vs indirect remuneration, ctc etc)- and appreciate the variables that influence compensation strategy and operations. · Strategize as how to align compensation strategies with business strategy and HR strategy and establish linkages between business strategy and individual and team performance through incentive compensation system design and practices.

· Learn to understand the importance of designing suitable compensation and benefits programmes in the context Mergers and Acquisitions, International Compensation and compensation for special groups like sales force, expatriate etc.,

Organization and Delivery of the Course:

The course has several themes which will be aligned with sessions, case studies, readings and text book chapters. Every session has one or more case studies, reading materials and news corner reports. Participants are expected to read and analyze the cases and bring the case analysis notes to contribute to the class discussion. Participants are also expected to go through the readings and gain in-depth knowledge in the respective themes. Participants may also be assigned roles in the case studies and would perform role plays in the class. The news corner reports are provided to enhance your understanding of current practices in compensation management related to the particular themes.

Material:

Course Reading Material “Strategic HRM & Employee Compensation”, 2011 by the Instructor.

Text Book: Milkovich & NewMan (2005). Compensation. Tata McGraw-Hill, New Delhi.


Session Plan
Theme 01
    Introduction to SHRM
    Pre Session
    		Article ReadingTheoretical Perspectives for SHRM
    Theme 02
      What Managers Don’t Know About Compensation…
      Session 01 & 02
      		CaseWhen Salaries Are Not Secret
      Article ReadingPower Dimension of Economics
      Text Book ChapterChapter 03 – Defining Internal Alignment
      Facilitator: Prof. S.S. Ganesh
      Theme 03
        Compensation for Competitive Advantage
        Session 03 & 04
        		Case 01
        Case 02        		A Simpler Way to Pay
        Lijjat Papad
        Article ReadingLooking Inside for Competitive Advantage
        Text Book ChapterChapter 02 – Strategy: The Totality of Decisions
        Facilitator: Prof. S.S. Ganesh
        Theme 04
          Market Competitive Pay through Benchmarking
          Session 05, 06 & 07
          		CaseCompensation Crisis
          Article ReadingDistinctive Human Resources are Firm’s Core Competencies
          Text Book ChapterChapter 07 – Defining Competitiveness
          Facilitator: Prof. Narasimham
          Theme 05
            Compensation Strategy for Competitive Strategy
            Session 08 & 09
            		Cases Frost Inc, Honda and UPS
            Article ReadingLinking Competitive Strategies with Human Resource Management Practices
            Text Book ChapterChapter 11 – Performance Appraisals
            Chapter 09 – Pay for Performance – The Evidence
            Facilitator: Prof. S.S. Ganesh
            Theme 06
              Veracity of Variable Pay Practices
              Session 10 & 11
              		Case Performance Evaluation at Citibank
              Article ReadingIncentive Compensation
              Text Book ChapterChapter 11 – Performance Appraisals
              Chapter 09 – Pay for Performance – The Evidence
              Facilitator: Prof. S.S. Ganesh
              Theme 07
                3Ps of Compensation – Pay Structure, Pay Levels and Pay Forms
                Session 12, 13 & 14
                		ExercisePay Structure Workshop
                Article ReadingNone
                Text Book ChapterChapter 08 – Designing Pay Levels, Pay Mix and Pay Structures
                Facilitator: Prof. Narasimham
                Theme 08
                  Should We Pay for Results Or Competencies?
                  Session 15 & 16
                  		CaseEureka Forbes Ltd
                  Article ReadingSales Management’s Behavior and Compensation-Based Control Strategies
                  Text Book ChapterChapter 14 – Compensation for Special Groups
                  Facilitator: Prof. S.S. Ganesh
                  Theme 09
                    Compensation & Benefits issues in M&A
                    Session 17 & 18
                    		Case None
                    Article ReadingNone
                    Text Book ChapterChapter 12: The Benefit Determination Process
                    Facilitator: Prof. Narasimham
                    Theme 10
                      International & Expatriate Compensation
                      Session 19 & 20
                      		Case None
                      Article ReadingNone
                      Text Book ChapterChapter 14: Compensation for Special Groups
                      Facilitator: Prof. Narasimham
                      Performance Assessment:

                      The course has six different components to suit the different learning style and pace of our participants. Each component has a series of related activities concerning conceptual learning and practical exposure aimed at achieving the course objectives.
                      S. NoName of the ComponentWeightage
                      1. In class exercises 20%
                      2. Quiz30%
                      3. Industry Project20%
                      4. End-Term30%
                      Total100%

                      The detailed guidelines for in class exercises, quiz and case study reports will be given to the participants during the course at different phases through course web.

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                      Created By: Janaki Jagan on 05/28/2011 at 10:08 AM
                      Category: PGDM-II Doctype: Document

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