School of Professional Advancement Doc.
No : QA-WI-01
Course Outlines Issue No: 01
Rev : 00
Resource Person Dr Khansa Masood
Trimester
Course Title Compensation & Benefits Management
Course Code HR-440
Course Type: Core
Pre-Requisite: MO & OB
Counseling Hours: Class Days
Program: MHRM
Program Head:
Name Signature Date
Prepared By
(Resource Person) Dr Khansa Masood
Checked By
(Program Head)
Approved By
(Director SPA) Imran Sadiq
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School of Professional Advancement Doc. No : QA-WI-01
Course Outlines Issue No: 01
Rev : 00
Course Description
Compensation & Benefit Analysts are facing two challenges, one is how to keep the Companies
Profitable and other is how to keep employees intact: by making cost-of-living adjustments to
salaries, give cash subsidies for specific expenses, or provide annual increments in accordance to
employee performance.
The overview of compensation and benefit includes the topic of wage and salary administration,
variable pay (Incentives, Recognition & Bonus), accounting & Finance for HR Professionals, job
evaluation to design pay structure & benefit plan, Compliance and legal side of Comp & Ben,
Payroll & Taxation. The organizations also have taken retrenchment / restructuring / downsizing
decision, such actions are taken affect employees livelihood. The company has to ensure that
employees will be compensated appropriately in such time. substantial means of support to last
through his or her unemployment for a certain period of time can help to soften the impact.
Instructional Goals (or Course Objectives)
Upon successful completion of this course the student will be expected to:
Understand different pay programs: merit pay, pay-for-performance, profit sharing, team
rewards.
Understand the role of compensation in attracting, motivating, and retaining a high-
quality workforce.
Identify linkages between compensation and performance systems.
To develop analytical skills in the areas of labour market and the dynamics of
compensation and benefits management system
Analyze and describe issues in the compensation system of an organization.
Develop employees’ benefits and incentives programs by determining pay increase.
Administer the compensation and benefits survey and monitor compensation cost.
Course (Student) Objectives
Upon completion of the course, students will be able to:
Demonstrate understanding of the core concepts of compensation and Benefits
Management System.
Analyze and describe issues in the compensation system of an organization.
Prepare compensation plan of any organization
Develop employees’ benefits and incentives programs
Administer the compensation and benefits efficiently and effectively
Format of the Course:
Weekly lectures with supplement exercising material
Resource Material
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School of Professional Advancement Doc. No : QA-WI-01
Course Outlines Issue No: 01
Rev : 00
Compensation by Milkovich, Newman & Gerhart
Compensation Management in a Knowledge – based World by Richard I. Henderson
Compensation Management by Dipak Kumar Bhattacharyya
Strategic Compensation by Joseph J.Martocchio
Performance Management, by Herman Aguinis 2/E (Prentice-Hall)
Performance Management: by Robert Bacal (McGraw-Hill)
Brief of Relevant Laws (Lawyer as guest speaker)
1. Payment of Wage Act (1936)
2. The Minimum Wages Ordinance (1961)
3. West Pakistan Minimum Wages Ordinance for Unskilled Workers (1969)
4. The Factories Act (1934)
5. The Companies Profit (Workers’ Participation) Act (1968)
6. Industrial & Commercial Employment (Standing Orders) Ord. (1968)
7. Employee’s Old-age Benefits Act (1976)
8. The Provincial Employee’s Social Security Ord. (1965)
9. Provident Fund Act, 1925
10. Workmen’s Compensation Act (1923)
11. Punjab Fair Price Shops Ordinance, 1971
12. West Pakistan Factories Canteen Rules, 1959
13. West Pakistan Maternity Benefit Ordinance (1958)
Brief Course Contents
Session 1: Course Introduction
One-to-one Introduction
Course Introduction, Teaching and Assessment Methodology
Discussion on Course Outline
Setting up Norms
Understanding the course structure and introductory concepts of Compensation &
Benefits Management System and relevant laws.
Activity 1:
Formation of Groups for the Project
Discussion on the choice of organizations
Learning Outcomes
Students will be able to differentiate between salary and total compensation plan
Understand the importance of this course for their career
Session 2: Compensation system and its practical aspect
Concepts and definitions
Compensation Management Purpose
Types & Methods, Motivational theories of Compensation
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Course Outlines Issue No: 01
Rev : 00
Components of Compensation system
Minimum Wages and relevant laws
Activity 2:
Class Discussion on Best Practices, Benchmarks.
Learning Outcomes
Understand difference between Compensation and Benefits.
Session 3: Job Analysis
Analyzing Considerations in job analysis
Understanding methods of job analysis
Review questions
Activity 3:
Discussion on the application of various jobs analyses concepts
Discuss Job Descriptions and Key Performance Indicators (KPIs)
Learning Outcomes
Developing Job Descriptions and Key Performance Indicators (KPIs)
This skill will eventually enable the students to develop quality compensation plan
Session 4: Job Evaluation
Learning job evaluation methods
Understanding issues and complexities in evaluating jobs
Learning the reasons for implementing job evaluation program
Analyzing compensable factors in calculating job worth
Activity 4:
Practical Application of Methods of Job Evaluation
Learning Outcomes
This will help the students implement job evaluation program in their respective
organizations
Session 5: Factor Comparison & Point Factor Methods for Developing Compensation Plan
Understanding the uses of Factor Comparison & Point Factor Methods
The strengths and weaknesses of market pricing
Compensable factors and their uses
Activity 5:
Practical Application of Factor Comparison & Point Factor Methods for evaluating all the
jobs in the hierarchy of their organizations
Learning Outcomes
This will help them construct meaningful and easily understandable job worth.
Session 6: Surveying Market Pay
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Course Outlines Issue No: 01
Rev : 00
Understanding job surveys and dynamics of market compensation practices
Understand the need for job survey for compensation plans management
Define the process, methods, and techniques of job surveys
Analyze job survey data and assess its results for developing comprehensive
compensation management system
Activity 6:
Presentations by the group leaders on the project work done so far
Discussion on conducting market pay survey in the organizations relevant to their group
project organizations
Learning Outcomes
This will help them construct their survey design for compiling meaningful information
Discussion on the practical difficulties in conducting market surveys and how to
overcome these bottlenecks
Session 7: Designing Base Pay Structure
Understanding principles of base pay structure paragraph structure using examples
Learning how to develop pay policy line
Designing pay grades and aligning the pay grades to internal worth as well as market
values
Activity 7:
Discussion by the group members on the project work done so far
Learning Objectives
Students will be able to learn how to design base pay structure for their organizations
Session 8: Practical Application of Methods of Job Evaluation
Learning practical application of Factor Comparison & Point Factor Methods
Activity 8:
Apply Factor Comparison & Point Factor Methods on evaluation of all the jobs in their
project organization
Learning Outcomes
Students will be able to Apply Factor Comparison & Point Factor Methods on evaluation
of all the jobs in their project organization
Session 9: Mid – term Exam
Conducting mid – term exam
Activity 9:
Presentations by the group members on the project work done so far
Learning Outcomes
Students will be assessed on the academic concepts.
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Course Outlines Issue No: 01
Rev : 00
The progress of the course project will be discussed.
Session 10: Compensating Performance & Teamwork
Pay for performance
Merit Pay and reward
Designing a job content –based performance appraisal program
Developing team-based compensation system
Activity 10:
Graded Presentations
Learning Outcomes
Learning the importance of relating kinds and levels of employer provide rewards to
kinds and levels of employee contribution
Analyzing the problems related to measuring and rating employee performance in teams
Learning motivation dynamics and linking it with performance and compensation
Design merit pay and team-based pay package
Session 11: Short – term & Long – term Incentives
Premium and differentials
Pay for units produced
Bonuses and rewards
Designing a long – term incentives plan
Deferred compensation plan
Activity 11:
Quiz (Marks: 5)
Discussion on Government compensation structure
Learning Outcomes
Students will be assessed on the concepts learnt so far.
Students will be able to learn short-term and long-term incentives plan
The students will develop understanding of the value and cost of these incentives
Session 12: Executive & International Compensation
Executive compensation
Capital accumulation
Maximizing executive compensation opportunities
International compensation
Issues related to repatriation
Activity 12:
Graded Presentations
Learning Outcomes
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Rev : 00
The students will develop understanding of the executive compensation and capital
accumulation
The students will learn the dynamics of maximizing executive compensation
opportunities
The students will learn the dynamics of international compensation and United Nations
compensation system
Session 13: Employees Pay & Benefits Delivery Administration
Administering employees pay, benefits and services
Reducing costs of administration
The budget processes
Other compensation administration issues
Activity 13:
Case Study (Marks: 5)
Discussion on relevant laws
Budget preparation in companies
Learning Outcomes
Learn to administer pay and benefits
Learn to compare pay and benefits administration issues of private and public sectors
Session 14: Group Project Presentations
Group Presentations
Activity 14:
Presentations
Learning Outcomes
The final group presentations will exhibit the overall comprehension attained by the
students in respect of the concepts of compensation and benefits
Students will demonstrate the presentation skills
Session: 15. Group Project Presentations
Course Overview
Question and answer session
Activity 15:
Presentations
Learning Outcomes
Whole course will be revised
Students can evaluate their own learning of the course
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Course Outlines Issue No: 01
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ASSESSMENT METHODOLOGY
Mid-term Exam 30 %
Quiz 05%
Class Activity (Case Study)/participation 15%
Group Project Assignment/ Presentations 10 %
Final Exam 40 %
Note: Detail description of every aforementioned assessment activity will also be provided in the
class.
Personal Ethics
It is expected that both the stakeholders (teacher & students) will adhere to decorum of
professional and ethical conduct. Cheating, plagiarism (submitting the language, ideas, thought
or work of another as one’s own) or otherwise indulging in un-fair means to obtain a grade under
false pretenses will result in severe disciplinary action leading to removal from the course. Any
deliverables found falling in such category will result in straight Zero without further re-
submission.
Session Sub-Topic Readings Activities
1 One-to-one Introduction Compensation Activity
Course Introduction, Teaching and Management in a
Assessment Methodology Knowledge – based
Discussion on Course Outline World
Setting up of Norms Richard I. Henderson
Introduction of Compensation and Ch. 1
Benefits Management System
2 Understand the need for Activity
compensation management
Define the process, methods and
techniques of job design
Define assessment centers and the
approach for job analysis
Analyze job design and assess its
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Course Outlines Issue No: 01
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relation to compensation management
system
3 Analyzing Considerations in job Compensation Activity
analysis Management in a
Understanding methods of job Knowledge – based
analysis World
Richard I. Henderson
Review questions
Ch. 6
4 Learning job evaluation methods Compensation Activity
Understanding issues and Management in a
complexities in evaluating jobs Knowledge – based
World
Learning the reasons for
Richard I. Henderson
implementing job evaluation program
Ch. 8
Analyzing compensable factors in
calculating job worth
5 Understanding the uses of Factor Compensation Activity
Comparison & Point Factor Methods Management in a
The strengths and weaknesses of Knowledge – based
market pricing World
Richard I. Henderson
Compensable factors and their uses Ch. 8 & 9
6 Compensation Presentations
Understanding job surveys and Management in a
dynamics of market compensation Knowledge – based
practices World
Understand the need for job survey Richard I. Henderson
for compensation plans management Ch. 10
Define the process, methods and
techniques of job surveys
Analyze job survey data and assess its
results for developing comprehensive
compensation management system
7 Understanding principles of base pay Compensation Activity
structure paragraph structure using Management in a
examples Knowledge – based
Learning how to develop pay policy World
Richard I. Henderson
line
Ch. 11
Designing pay grades and aligning
the pay grades to internal worth as
well as market values
8 Learning practical application of Compensation Activity
Factor Comparison & Point Factor Management in a
Methods Knowledge – based
World
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Course Outlines Issue No: 01
Rev : 00
Richard I. Henderson
Ch. 9
9 Mid – term Exam Mid – term
Discussion by the group members on Exam
the project work done so far
10 Pay for performance Compensation Presentations
Merit pay and reward Management in a
Designing a job content –base Knowledge – based
World
performance appraisal program
Richard I. Henderson
Developing team-based compensation Ch. 12 & 13
system Compensation
Management by Dipak
Kumar Bhattacharyya
Ch. 5
11 Premium and differentials Compensation Activity
Pay for units produced Management in a
Bonuses and rewards Knowledge – based
World
Designing a long – term incentives
Richard I. Henderson
plan Ch. 14 & 15
Deferred compensation plan
12 Executive compensation Compensation Presentations
Capital accumulation Management in a
Maximizing executive compensation Knowledge – based
World
opportunities
Richard I. Henderson
International compensation Ch. 16
Issues related to repatriation Compensation
United Nations compensation system Management by Dipak
Kumar Bhattacharyya
Ch. 7 & 14
13 Administering employees pay, Compensation Activity
benefits and services Management in a
Reducing costs of administration Knowledge – based
The budget process World
Other compensation administration Richard I. Henderson
issues Ch. 17 & 18
14 Group Presentations Presentations
15 Course Overview Presentations
Presentations and Question / answer
session
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