COMPENSATION MANAGEMENT

Paper Code: 
24MHR325
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to promote an understanding of issues related to the compensation in the organizations.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course Title

24MHR325

Compensation Management (Theory)

CO157: Interpret the key concepts related to Compensation Management

CO158: Evaluate different wage determination methods, different types of Wage Components, Methods of wage payment and wage theories.

CO159: Examine various components of job design, job evaluation and Team- Based Compensation.

CO160: Assess the different Behavioural Dimensions          of compensation management and executive compensation.

CO161:           Analyze the different provisions that come under The Payment of Wages Act, 1936 and The Minimum Wages Act, 1948.

CO162: Contribute effectively in course – specific interaction

Approach in eaching:

Interactive Lectures, Group Discussion, Tutorials, Case Study

Learning activities for the students: Self learning

assignments, Effective discussion, simulation

and presentation

Class test, Semester end examinations, Quiz, Assignments, Presentation

 

12.00
Unit I: 
Introduction to Compensation Management

Compensation Management:

Concept, Objectives, Significance and principles of Compensation Management, common types of compensation.

Wage concepts –Types of Wages: Minimum wage, Need-based Minimum Wages, Fair wage, Living wage, Wage policy in India

12.00
Unit II: 
Wage Determination and Components

Wage Determination: Wage Determinant Methods (Legislation, Wage Boards & Pay Commissions, job Evaluation, Collective Bargaining, Adjudication& Arbitration) Types of Wage Differentials, Wage Theories

Wage Components: Basic Salary, DA (evolution and its significance), Fringe benefits, Bonus, Incentives (Individual, group and organization wide) Methods of wage payment – Time and Piece rate wage system

12.00
Unit III: 
Job Design and Evaluation

Compensation Management and Job Design

Concept, Strategies and techniques of Job Design, methods of Analysis, Compensation Design through Compensable Factors.

Compensation Management and Job Evaluation: Concept, Techniques, Process and limitations.

Team-Based Compensation: Concept, Effective Team-Based Compensation, Recent trends in Team-Based Compensation.

12.00
Unit IV: 
Behavioural Dimensions and Executive Compensation

Behavioural Dimensions of Compensation Management:

Factors Influencing Effective Compensation Management, Motivational issues in Compensation, Impact of Compensation on Employees Behaviours, Consequences of Dissatisfaction with Compensation.

Executive Compensation: Concept, Principles of Executive Compensation, Factors Affecting Executive Compensation, Compensation trends in India.

12.00
Unit V: 
The Payment and Minimum Wages Act, 1948

The Payment of Wages Act, 1936:

Objects; Application; Responsibility for payment of wages; Fixation of wage periods; time- limits; Deduction from wages; Remedies available to worker, Powers of authorities, Penalty for offences.

The Minimum Wages Act, 1948: Objects; Application; Minimum Fair and Living Wages; Determination of minimum wage; Taxation of minimum wage; Advisory Board;

Remedy to worker for non-payment of minimum wages.

*Case studies related to entire topics are to be taught.

 

Essential Readings: 
  • Dipak Kumar Bhattacharyya, Compensation Management, Oxford University Press, New Delhi.
  • Sharma, A.M. Industrial Relations, Conceptual and Legal Framework, Himalaya Publishing House
  • Bhati, Kanchan., Compensation Management, Himalaya Publishing House

 

References: 

Suggested Readings:

  • Aswathappa, K., Human Resources and Personnel Management, Tata McGraw Hill Publishing Company Ltd., New Delhi
  • Rao.V.S.P, Human Resource management, Excel Book, New Delhi.
  • Subramaian K.N. Wages in India, Tata McGraw Hill Publishing Co. Ltd., New Delhi
  • Verma, Pramod Wage Determination: Concepts and Cases, Oxford and IBH, Publication, New Delhi.
  • Tapomoy Deb, Compensation Management: Text & Cases, Excel Books, New Delhi.
  • Poole Michael, Industrial Relations; Origins and Patterns of National Diversity; Routledge & Kegan paul, London.
  • Keer, Clark and Staudohar, Paul D., Industrial Relations in a New Age, Jossey- Bass Publishers, San Franciso;

 

E Resources:

 

Journals:

  • South Asian Journal of Human Resources Management
  • Indian Journal of Industrial Relations

 

Academic Year: 
2024-2025
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