Unit I: Introduction to Compensation Management Introduction –Definition of Compensation Management - objectives of compensation – Principles of Compensation Management – Importance of Compensation Management - Types of wages. Exploring and Defining the compensation context – Intrinsic compensation - Extrinsic compensation -- Compensation Trends in India. - The 3-P compensation concept
Unit II: Compensation Planning & Bases of Compensation Compensation and its components - Compensation Planning: Level, Structure and Systems Decision – Compensation level planning- factors influencing compensation level planning : internal factors and external factors. Traditional Bases for Pay-Seniority and Longevity PayMerit Pay- Performance Appraisal- Methods- Biases -Strengthening the Pay for Performance Link- Possible Limitations of Merit Pay
Unit III: Incentive Pay & Other Pay Systems Exploring Incentive Pay- Contrasting Incentive Pay with Traditional Pay. Individual IncentivesTypes of Individual Incentives- Advantages and Disadvantages. Group Incentives- Types of Group Incentives- Advantages and Disadvantages. Companywide Incentives- Types- Designing Incentive Pay Programmes. Person Focused Pay- Competency Based Pay, Pay for Knowledge and Skill Based Pay, team based pay- Concepts.
Unit IV: Designing Compensation System Building internally consistent Compensation System - Creating Internal Equity through Job Analysis and Job Valuation - Building Market Competitive Compensation System – compensation surveys - Integrating Internal Job Structures with External Market - Building Pay Structures that Recognise Individual Contribution : Constructing pay structure. Pay structure variations – Broad banding- two tier pay structure.
Unit V: Contemporary Strategic Compensation International compensation – components of international compensation – Executive compensation – components of executive compensation - Compensating the Flexible .Workforce Contingent Employees – core and fringe compensation.