UNIVERSITY OF SIALKOT
FACULTY OF MANAGEMENT AND ADMINISTRATIVE SCIENCES
Course Outline
Course Name: Compensation & Reward Management
Course Code: HRM-4002
Credit Hours: 3
I. COURSE DESCRIPTION
The course provides an overview and based on that an exposure to compensation and reward systems in
organizations. The students are given an orientation of the most challenging domain of the Human Resource
Management, namely Compensation & Reward Management and an incisive understanding of the
compensation & Reward strategies and challenges. Another major application of the course is to equip
students with the basic knowledge in this domain and develop them in a way that they can use that
knowledge to develop HR policies and systems for their clients. Finally the course provides an optimal
framework to integrate what the students learn in the other disciplines of the program and enhance their
learning through case analysis.
II. COURSE OBJECTIVE
Upon completion, the students will be able to:
Assume entry-level responsibilities for compensation management projects in organizations.
Understand and apply relevant compensation theory, design and implementation of that structure.
Analyse current compensation decision-making and benefit programs in the work place.
Assess the relationship of job analysis and evaluation to compensation.
III. COURSE OUTCOMES
The course is designed to impart the abilities and competencies of
Using the key concepts and terms in the area of compensation and reward.
Understanding the issues involved in compensation and reward management, analyzing them and
developing their solutions.
Displaying the working knowledge, skills and abilities of the field of reward and management.
Demonstrating an understanding of the relationship between human resource management
objectives and compensation and reward program.
IV. COURSE CONTENTS
Introduction and Overview of Compensation and Reward
Forms of Pay and Pay Model
Internal Alignment: Determining the structure
External Competitiveness: Determining the pay level
Employee Contributions: Determining Individual Pay
Employee Benefits
Case-Studies related to Compensation and Reward management of Different
organizations
V. EVALUATION
Assignments: 10%
Project and Presentation: 10%
Quizzes: 5%
Mid Term Examination: 25%
Final Examination: 50%
Total: 100%
VI. TEXT BOOKS
Milkovich and Newman; Compensation; McGraw-Hill; 8th Edition.
Armstrong M. and Murlis H.; Reward Management – A Handbook of Remuneration Strategy &
Practice; Hay Group London; 5th Edition.
VII. REFERENCE BOOKS/MATERIAL
R. Henderson; Compensation Management in a Knowledge Base World; Prentice Hall
Publications; 10th Edition.
Reward Strategies, Encyclopedia of Human Resource Development.
VIII. ADDITIONAL READINGS
Case studies, exercises and articles would be provided during the course of semester. Students are
expected to prepare the cases in advance of case sessions to utilize class time productively. Quizzes at
times can also include additional articles provided in the class.
DETAILED COURSE OUTLINE
Week Topic REFERENCES
The Pay Model
Definition of Compensation and reward
1 Ch # 01
Different Forms of Pay
Pay Model
Strategic Perspective
Strategic Perspective toward Total compensation
2 Ch # 02
Steps in Developing a total compensation strategy
Source of Competitive advantage
Compensation Strategy: Internal Alignment
Defining the Internal Alignment
What shapes internal structures?
Ch # 03
Strategic choices in designing internal structures
3
Research regarding pay structure
Consequences of Structures
Case Study: The Effect of Compensation on employee
motivation
Job Analysis
Ways to create internal structures
Job-based Structure
4 Ch # 04
Job analysis Procedures
Information needed for job analysis
How can the information be collected?
Job Evaluation
Defining job Evaluation: Content, Value and External
Market Links
“How To”: Major Decisions
Job Evaluation Methods Ch # 05
5
o Ranking
o Classification
o Point Method
The final Result: Structure
Case Study: Salary in Equities at ACME manufacturing
Person Based Structures
Skill plans
Skill Analysis
6 Ch # 06
Person-based Structures: Competencies
Competency Analysis
Administering the plan
External Competitiveness
Defining Competiveness
Factors that Shape External Competitiveness
7 Modification to the Demand Side Ch # 07
Modification to the Supply Side
Product Market Factors and Ability to Pay
Organization Factor
External Competitiveness
Designing Pay levels, mix and pay Structures
Major Decisions in setting Pay
8 Specify Competitive Pay Policy Ch # 08
Select Relevant market Competitors
Design the survey
Interpret Survey Results and Construct a Market Line
Case Study: Impact on Hotel Employee Turnover and
Satisfaction level
9 Mid Term Exam
Employee Contributions: Determining Individual Pay
Pay for Performance
What Behaviors Do Employees Care About?
10 Linking Organizational Strategy to Compensation and Ch # 09
Performance Management
Total Reward System
Designing a Pay for Performance Plan
Pay for Performance Plans
What is Pay for Performance Plan?
Specific Pay for Performance Plans Ch # 10
11 Types of Team Incentive Plans
Explosive Interests in Long Term Incentive Plans
Article: Relationship between job satisfaction and
organizational performance
Performance Appraisals
The Role of Performance Appraisals in Compensation
Decisions
12 Ch # 11
Strategies For Better Understanding and Measuring
Job Performance
The Performance Evaluation Process
Employee Benefits
The Benefit Determination Process
Reasons for Growth in Employee Benefits
The Value of Employee Benefits
Ch # 12
13 Key Issues in Benefit Planning, Design and
Administration
Components of a Benefit Plan
Administrating the Benefit Program
Case Study: Compensation Management in Metropolis
Benefit Options
Legally Required Benefits
14 Retirements and Saving Plan Payments Ch # 13
Medical and Medically Related Payments
Miscellaneous Benefits
Compensation of Special Groups
Who are Special Groups? Ch # 14
15 Compensation Strategy for Special Groups
Article: A Framework for lean manufacturing implementation
16 Presentation
17 Preparation week
18 Final Term Examination
