HRM 463: Compensation Management Fall Semester, 2007
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1 HRM 463: Compensation Management Fall Semester, 2007 Barry A. Friedman, Ph.D., 247 Rich Hall (315) , Office Hours: Tuesday and Thursday, 8:45-9:30, 12:30-2:00, 3:45-5:15, and by appointment. Purpose Prerequisite Relevance Course Objectives The development and maintenance of internally equitable and externally competitive wage and salary programs is studied. Major emphasis is given to the importance of total compensation as a tool for effective business strategy implementation, and in attracting, retaining, and motivating employees. Topics include: compensation theory; compensation as a component of strategic management; monetary and non-monetary compensation as a motivator; legal aspects of compensation; job analysis; job evaluation; pay structure determination, performance appraisal; incentive plans; employee benefits. HRM 386 or permission of the instructor. Students without adequate academic background should not remain in this course. Those who choose not to drop the course will not be allowed to withdraw because of inadequate academic preparation. Inadequate preparation often leads to poor performance. Compensation systems are the primary means by which organizations induce contributions from their human resources. When effectively managed, total compensation is a competitive advantage in today s increasingly rapidly changing business environment. Effective compensation management is essential for unleashing human resource potential. To determine how to make effective compensation decisions under realistic organizational conditions. More specifically, upon successful completion of this course, students will be able to: Explain how compensation decisions fit organizational strategy implementation Explain the impact of legal requirements on compensation management Identify and explain the rationale for the different types of incentive plans Distinguish between different types of pay and compensation plans and structures Analyze, critique and recommend changes for compensation systems Identify effects of compensation systems on organizational performance
2 Teaching Method: Complete Readings/Cases Before Class and Discuss Content Discuss Analyze Cases in Small Groups Texts Expectations Milkovich, G.T. and Newman, J.M. (2008) Compensation. Ninth Edition. (Text) Milkovich, G.T., and Milkovich, C. (2004) Cases in Compensation. Ninth Edition. (Casebook) 20%- Participation 15%- Midterm 25%- Final 40%- Four Team Reports and Presentations (10% each) Participation is determined by evaluating your: 1) ability to respond to questions; 2) contribution to discussions and exercises in class; 3) the quality of the questions you ask. A s in participation are awarded to students who develop the reputation as a person who is always prepared, willing and able to contribute whether it is to answer or ask questions, or to participate in any of a variety of in-class exercises. Participation grades below C in this class are rare, reserved for students who demonstrate disrespect for class participants. If you experience difficulty speaking in class, please see me. Attendance is essential and obligatory. Attendance will be taken. Students may be dropped for nonattendance. It is your responsibility to regularly attend classes and complete assignments as scheduled. This course requires that you read the assigned text chapters, cases and consider the review questions before each class meeting. Class discussion is expected as we examine compensation issues. Active and constructive participation during small group activities will help you apply knowledge.
3 Expectations (continued) Exams address class, textbook, case, and reading material (the final is not cumulative). The exams will be some combination of multiple choice and essay questions. The Team Reports asks that you design a compensation system for FastCat, a case study. Specific instructions are in the Cases in Compensation casebook. Short informal presentations are required. Reports are due the class meeting after the presentation (except for last report, due same day). Intellectual Integrity Add/Drop Process Disability Intellectual integrity on the part of all students is basic to individual growth and development through college course work. When academic dishonesty occurs, the teaching/learning climate is seriously undermined and student growth and development is impeded. For these reasons, any form of intellectual dishonesty is a serious concern and is therefore prohibited. Students are expected to be fully familiar with the campus policy on intellectual integrity that can be found in the undergraduate catalog. It is the responsibility of the students to be fully informed of the college catalog policies regarding course add, drop and withdrawal. If you have a disabling condition that might interfere with your ability to complete this course successfully, please contact me, or contact the Office of Disability Services (phone ).
4 HRM463 Please read text chapter, review questions and cases prior to class Dates Topics Text Chapter unless otherwise noted 8/30 Course Introduction 1 Pay Model 9/4 Teambuilding- team formation and charter Your Turn: Mapping Compensation Strategies (p. 54) 2 1,2,5 (p. 54) 9/6 FastCat: Objectives for FastCat s Compensation System FastCat Casebook (p.1-10) 9/11 FastCat: Team Presentations of Strategy 9/18 Defining Internal Alignment/Determining Pay Structure First FastCat Team Report Due 3 1,2,3,5 (p. 83) 9/13 So You Want to Lead the Orchestra?,( p. 82) 9/20 Job Analysis (p.114) 9/25 The Customer Service Agent (p ) 9/27 Job Evaluation (p.146) 10/2 Job Evaluation at Whole Foods (p )
5 Dates Topics Text Chapter unless otherwise noted 10/9 Person Based Structures: Skills and Competencies Climb the Legal Ladder (p ) (p.176) 10/11 FastCat: Phase I- Alignment: Designing an Internal Structure FastCat Casebook (p.11-36) 10/16 FastCat: Team Presentations of Internal Structure 10/18 Defining External Competitiveness/Determining the Pay Level Second FastCat Team Report Due 7 1,2,5,6 (p.210) Your Turn: Sled Dog Software (p. 209) 10/23 Designing Pay Levels, Mix and Pay Structures Your Turn: Word of Mouse: Dot Com Comparisons (p.250, 1-4,6,7,9) 11/25 Employee Contributors: Pay for Performance Appendix 10-A: Gain Sharing Plan at Dresser Rand (p ) (p. 251) 9,10 1,2,3,5 (p. 318) 11/30 Performance Appraisals (p. 362) 11/1 Your Turn: Merit Pay- Making Policies and Practices that Work! (p ) Midterm Essay Take Home (Part One) 11/6 Midterm (Part Two in class)
6 Dates Topics Text Chapter unless otherwise noted 11/8 FastCat: Phase II External Competitiveness- Pricing the Structure FastCat Casebook (p.37-58) 11/13 FastCat: Team Presentations 11/15 Benefit Determination Process and Benefit Options Love, Inc. (p ) 12, (p.463) Third Team Reports Due 11/20 Compensation of Special Groups Your Turn: Compensation of Special Groups (p ) 11/27 Union Role in Wage and Salary Administration Your Turn: General Technology (p. 507) 11/29 International Pay Systems Your Turn: Coke and IBM (p ) 12/4 Management: Making It Work Still Your Turn: Ethics in Compensation Decisions (p. 609) 12/6 FastCat Phase III: Performance and Execution Presentations Fourth FastCat Team Report Due (p ) (p. 508) (p. 544) (p. 609) FastCat Casebook (p.59-71) 12/10-14 Final (date to be announced)
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