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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.

· Understand the significance of aligning compensation policies and practices with business strategy and other HR practices.

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.

Theme 01 HRM for Competitive Advantage	Session 01, 02 & 03	Case 01	Lijjat Papad
		Article Reading	Looking Inside for Competitive Advantage
		Text Book Chapter	Chapter 02 – Strategy: The Totality of Decisions

Theme 02 Compensation Strategy for Competitive Strategy	Session 04 & 05	Cases	Frost Inc, Honda and UPS
		Article Reading	Linking Competitive Strategies with Human Resource Management Practices
		Text Book Chapter	Chapter 11 – Performance Appraisals Chapter 09 – Pay for Performance – The Evidence

Theme 03 Aligning Business Strategy with Individual Performance	Session 06 & 07	Case	Performance Evaluation at Citibank
		Article Reading	Incentive Compensation
		Text Book Chapter	Chapter 11 – Performance Appraisals Chapter 09 – Pay for Performance – The Evidence

Theme 04 What Managers Don’t Know About Compensation…	Session 08, 09 & 10	Case	When Salaries Are Not Secret
		Article Reading	Power Dimension of Economics
		Text Book Chapter	Chapter 03 – Defining Internal Alignment

Theme 05 Managing Market Myths in Compensation	Session 06, 07 & 08	Case	Compensation Crisis
		Article Reading	Distinctive Human Resources are Firm’s Core Competencies
		Text Book Chapter	Chapter 07 – Defining Competitiveness

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. No	Name of the Component	Weightage
1.	Dialectic Forum (blog)	20%
2.	Assignment	10%
3.	Case Study Report	30%
4.	End-Term	30%
5.	Course Involvement	10%
	Total	100%

1. Dialectic Forum (Blog) – 20%
The purpose of the dialectic forum is to promote “collective learning” through blogging. All participants are encouraged to share their views and perspectives freely through this knowledge sharing forum.

2. Assignment – 10%
There will be one assignment related to Theme 03 which will be used in the subsequent classes to facilitate the learning. The guidelines for the assignment will be given through the course web.

3. Case Study Report – 30%
The case study report is to be submitted before the end-term exam. The guidelines for the case study report will be given through course web.

4. End-Term – 30%
The end-term examination would be an open-book examination evaluating the concepts learned during the course.

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