Institute of Business Administration

University of Dhaka MBA PROGRAM, Spring Semester: February - May 2013 Course: H601: Compensation Management 1. Compensation George T Milkovich, Jerry M Newman, C S Vankata Ratnam Tata McGraw Hill, Ninth Edition 2. Employee Reward (People and Organisation) Michael Armstrong Institute of Personnel and Development
Brief Course Outline

Topics 1. The Conceptual framework a. Terminologies, differences, definitions and philosophies b. Definitions and Debates c. Elements/forms of pay d. Pay model e. The policy choices 2. Economic theories relating to pay a. Labour market b. Economic determinants of pay i. Supply and demand ii. Efficiency wage theory iii. Human capital theory c. Agency theory d. The effort bargain e. Factors effecting pay levels within organization 3. Strategy a. Similarity and differences in strategies b. Different strategies within same industry c. Different strategies within same company d. Strategic choices e. Support business strategy f. Developing a total compensation strategy: the choices (four choices) g. Best practice verses best fit 4. Defining Internal Alignment: Determining the structure a. Compensation Strategy: internal alignment b. Factors for various structure in the organization i. Levels, ii. Differentials

Primary Texts Employee Reward Michael Armstrong Compensation George T Milkovich, Jerry M Newman, C S Vankata Ratnam Employee Reward Michael Armstrong

Compensation George T Milkovich, Jerry M Newman, C S Vankata Ratnam

Compensation George T Milkovich, Jerry M Newman, C S Vankata Ratnam

iii. Criteria: Value and Content c. What shapes internal structure d. Strategic choices in designing internal structure

5. Job Analysis a. Job based approach b. Determining the internal job structure c. Job analysis procedure d. What information should be collected? e. How can the information be collected? i. Conventional method ii. Quantitative method f. Who collects the information g. Who provides the information h. What about discrepancies i. Job analysis debate : bedrock or bureaucracy j. Judging job analysis 6. Job Evaluation a. Defining job evaluation and the linkage b. Major decisions: Job evaluation (how to) c. Establishment of purpose d. Single versus multiple plan e. Benchmarking, slotting non-benchmark jobs f. Different methods and choosing among methods g. Conduct job analysis exercise to come up with the final structure

Compensation George T Milkovich, Jerry M Newman, C S Vankata Ratnam

Compensation George T Milkovich, Jerry M Newman, C S Vankata Ratnam Notes from Faculty

Topics 7. Defining competitiveness (External competitiveness) External competitiveness and factors Controlling costs Attracting and retaining Employees What shapes external competitiveness? Organizational factor affecting external competitiveness The concept of Relevant Market Competitive pay policy alternatives Consequences of pay-level and mix decisions

Primary Texts Compensation George T Milkovich, Jerry M Newman, C S Vankata Ratnam

8. Designing pay levels, Mix and Pay Structure Major decision involving pay levels, mix and pay structure Specifying competitive pay policy The purpose of a survey Selecting of specific market competitors Designing a survey o What jobs to include? o What information to collect? Interpreting survey results and constructing of market

Compensation George T Milkovich, Jerry M Newman, C S Vankata Ratnam

line Statistical analysis Constructing market pay-line The pay-policy line Developing of grades Establishing of midpoints, minimums and maximums The concept of Overlap Broad-banding Balancing internal and external pressure Compensation George T Milkovich, Jerry M Newman, C S Vankata Ratnam

9. Pay for Performance Plans Understanding the concept What are the pay-for-performance plans Individual Incentive plans advantages and disadvantages Team Incentive Plans Team Compensation Long-term incentive plans 10. Dealing with anomalies, consequences of Merger and Acquisition and other special circumstances

Notes from Faculty