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STHRM&EC-X09

PGDM-PT : 2009-12 (Term-VII)

Strategic HRM & Employee Compensation
Prof. S.S. Ganesh
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. · 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.

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 & Venkata Ratnam (2009). 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
      Theme 03
        Compensation for Competitive Advantage
        Session 03, 04 & 05
        		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






        Theme 04
          Managing Market Myths in Compensation
          Session 06, 07 & 08
          		CaseCompensation Crisis
          Article ReadingDistinctive Human Resources are Firm’s Core Competencies
          Text Book ChapterChapter 07 – Defining Competitiveness
          Theme 05
            3Ps of Compensation – Pay Structure, Pay Levels and Pay Forms
            Session 08 & 09
            		Cases None
            Article ReadingNone
            Text Book ChapterChapter 08 – Designing Pay Levels, Pay Mix and Pay Structures
            Theme 06
              Compensation Strategy for Competitive Strategy
              Session 10
              		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
              Theme 07
                Veracity of Variable Pay Practices
                Session 11 & 12
                		Case Performance Evaluation at Citibank
                Article ReadingIncentive Compensation
                Text Book ChapterChapter 11 – Performance Appraisals
                Chapter 09 – Pay for Performance – The Evidence
                Theme 08
                  Should We Pay for Results Or?
                  Session 13 & 14
                  		CaseEureka Forbes Ltd
                  Article ReadingSales Management’s Behavior and Compensation-Based Control Strategies
                  Text Book ChapterChapter 14 – Compensation for Special Groups
                  Theme 09
                    Compensation Administration
                    Session 15
                    		Case None
                    Article ReadingNone
                    Text Book ChapterNone


                    Performance Assessment:

                    The course has four 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. On-Campus Assignments30%
                    2. Quiz20%
                    3. Case Study Report20%
                    4. End-Term20%
                    5. Course Involvement10%
                    Total100%


                    On-Campus Assignments – 30%
                    There will be three on-campus assignments which will be used in the subsequent classes to facilitate the learning. The on-campus assignment will have a mix of both individual as well as group assignments. The weight for each assignment is 10%.

                    Quiz – 20%
                    The questions for the quizzes are drawn from the case material, reading material assigned for the theme, text book chapters, instructor’s presentation and the relevant news corner reports given for the themes. All the quizzes would be multiple-choice, either-or, and objective type. The average score of total quizzes (2 quizzes) would be taken for calculating the 20% weight for the quizzes.

                    Case Study Report – 20%
                    The case study report is to be prepared after the on-campus programme is over. The guidelines for the case study report will be given through AIS / Course web during the on-campus programme.

                    End-Term – 20%
                    The end-term examination would be a closed-book examination evaluating the concepts learnt discussed during the course. The weightage for the end-term is 20%.

                    Course Involvement – 10%
                    The measures of course involvement would be based on class participation, case preparation and analysis, quality of case study report, timely submission of the report, and any other initiative to enrich the course content, process and outcome. The weightage for course involvement is 10%.

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                    Created By: Janaki Jagan on 05/16/2011 at 09:36 AM
                    Category: ExPGP-III Doctype: Document

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