MHRE212 Systems for remuneration and compensation
The course has a duration of 30 academic hours and encompasses different forms of study:
І. Individual work with training materials
• Work with scientific publications and printed sources.
• Work with electronic resources.
ІІ. Interactive group work: discussions, class assignments for understanding and skills development/improvement
• Problem-solving workshops for forming/development of professional skills.
• Group projects aiming at development of collaborative mindset and skills.
In the organizations with a modern style of management compensations and rewards are among the key tools of human resource management whereas the traditional function of compensation administration is no longer of such importance.
Human resource management experts need to know in detail the applicable labour and insurance legislation, the labour market trends and the resources available in the organization for motivating its staff. In this way HR experts can support the senior management in designing appropriate policies and reward systems which should appeal to the employees and attract and retain the best of them. At the same time, the compensation system must account for the actual results of the organization activities expressed as productivity of labour.
Compensations and rewards are discussed in the context of effective motivators for the employees as an essential part of the organization’s budgetary policies aligned with the modern concepts of measurable results via performance evaluation. Special attention is paid to different payment systems which allow efficient administration and satisfy the employee expectations for pay justice and opportunities for development.
The whole course is built upon a case study, updated to account for the actual labour market issues in a certain year. The case study is designed to demonstrate the consecutive phases of building up an incentive system which includes a properly structured compensation model and a broad array of rewards which are not necessarily material in nature.
The course aims at:
• Guiding the students to acquire the necessary competencies in labour legislation and develop a mindset which interprets compensation systems within the respective regulatory framework.
• Supporting the students to develop a complete concept of personnel incentives by making appropriate connections among the theories of motivation, the methods of performance evaluation, the pay system models and the relevant actual trends established by labor market surveys.
• Guiding the students into developing practical skills in building compensation & reward systems under the existing conditions in a country such as Bulgaria.
доц. Мария Иванова д-р
Описание на курса:
After completing successfully this course the students will:
• The major laws and regulations which set up the framework for pay mechanisms in labour relations.
• Which elements of the pay systems must be aligned with the relevant national legislation.
• What is the role of minimum wages and their levels in the European Union member-states.
• What are the features of the major segments of the Bulgarian labour market concerning pay levels.
• Which are the most popular sources of labour market information.
• Which are the key principles of compensations on which the different pay systems are based.
• Which are the external and internal factors which determine pay levels and methods of pay.
• What is the connection between motivating and demotivating factors, the payment principles and the non-monetary elements of compensation and reward systems.
• What is the compensation structure according to the relevant labour legislation and the compensation policies of the organization.
• Which are the most popular incentive plans and how to apply them efficiently.
• What is the nature and which are the mechanisms for applying performance-related payment systems.
• Which are the most popular pay systems applied in bog organizations in Bulgaria and elsewhere.
• Which are the key processes in building up a compensation & reward system.
2) are capable:
• To consult the senior management on compensation and reward issues and make grounded proposals for improving the existing pay system in a given organization.
• To apply, in collaboration with competent legal councils and accountants, the requirements of the labour legislation applicable to compensation matters.
• To identify appropriate labour market surveys and to interpret them according to their specific needs for information.
• To analyse all aspects of a compensation & rewards practice with a view to make grounded proposals for improving the existing pay system or build a new one.
• To identify and account for all factors relevant to building a compensation & rewards system, including legal, financial and psychological considerations.
• To pinpoint deviations from the established principles in a compensation and rewards system or practice and propose solutions towards a more consistent pay system.
• To set up the framework for a graded pay system by designing the key components of such a system such as pay grades, the steps within a grade, criteria and rules for advancement along the pay grid, and the rules for accepting exceptions to the grid logic.
• To give professional feedback on the performance of an employee in connection with the principles for changing the compensation and rewards system.
• English reading and writing skills.
• Computer skills (text processing, worksheets, internet and e-mail).
• Ability to use internet-based resources.
• The training is more effective if the students have a prior bachelor degree in economics, psychology or another relevant subject which could be instrumental in developing a professional attitude.
• Prior knowledge and/or experience in job evaluation and personnel appraisal contributes significantly to better course outcomes.
Форми на провеждане:
Език, на който се води курса:
Теми, които се разглеждат в курса:
Литература по темите:
• Aggarwal, A.K., Samwick, A. (2003) Performance incentives within firms: The effect of managerial responsibility. Journal of Finance, Vol. LVIII, No. 4, p. 1613-1649.
• Aberdeed Group, 2007. Incentive Compensation Management: Aligning Employee Performance with Business Goals. Aberdeed Group: White paper.
• Aberdeed Group, 2008. Total Compensation Management: Taming Costs and Rewarding Employees. Aberdeed Group: White paper.
• Armstrong, M. 1999. A Hanbook of Human Resource Management Practice, 7th ed. London: Kogan Page.
• Armstrong, M. 2007. A Handbook of Employee Reward Management and Practice. 2nd Ed., London: Kogan Page.
• Baker, G.P. at el. (1998) Compensation and incentives: Practice vs. Theory. Journal of Finance, Vol. 43, Issue 3, p. 593-616.
• Ball, C.A. 2003. Take Charge of Your Workers' Compensation Claim: an A-to-Z Guide for Injured Employees. Berkeley, CA: Nolo Press.
• Cichelli, D.J. 2004. Compensating the sales force. NY: McGraw Hill.Anthony, W., Perrewe, P., Kacmar, K. 1993. Strategic Human resource Management. The Dryden Press.
• Chingos, P.T. (Ed.) 2002. Paying for Performance: A Guide to Compensation Management. NY: John Wiley.
• Ball, C.A. (2003) Take charge of workers compensation claim. Nolo Press.
• Bebchuk, L., Khurana, R. (2006) The compensation game. Harvard Business School.
• Cichelli, D.J. (2004) Compensating the sales force. McGraw Hill.
• Crandall, N.F. et al. (2003) The headcount solution: How to cut compensation costs and keep your best people. McGraw Hill.
• Dibachi, F., Dibacji, R.L. (2002) Just add management - Seven steps to creating a productive workplaceand motivating your employees in challenging times. McGraw Hill.
• Fisher, C., Wise, V. (2006) Share-based payment: Emerging issues. Victoria University, Occasional Paper No. 13
• Garvey, G., Milbourn, T. (2003) Incentive compensation when executives can hedge the market: Evidence of relative performance cross section. Journal of Finance, Vol LVIII, No. 4, p. 1557-1581.
• Herzberg, F. (1987) How To Motivate Employees Harvard Business Review, p. 5-16.
• Incentive compensation management: Aligning employee performance with business goals (2007) Aberdeed Group, White paper.
• Jensen, M.C., Murphy, K.J. (1998) Performance pay and top management incentives. In: Foundations of Organizational Strategy, Harvard University Press.
• Laffont, J.J., Martimort, D. (2002) The theory of incentives. The principal-agent model. Princeton University Press.
• Manas, T.M., Graham, M.D. (2003) Creating a total rewards strategy: A toolkit for designing business-based plans. Amacom.
• Milkovich, G.T., Newman, J.M. (2002) Compensation. 7th Edition, McGraw Hill.
• Narayanan, V.G., Raman, A. (2004) Aligning incentives in supply chains. Harvard Business Review, p. 94-102.
• Nicholson, N. (2003) How to motivate your problem people. Harvard Business Review, p. 5-12.
• Reda, J.F. et al. (2005) Compensation Committee Handbook, 2nd Edition, John Wiley.
• Schlegel, J. (2007) The cycle of Excellence. Compensation administration in Pay-for-Performance organizations. Salary.com.
Usunov, Julian (2016) COMPENSATION ANDREWARDSYSTEMS, ISBN978-954-535-565-3
.Wright, Angela (2004) Reward management in context, London: Chartered Institute of Personnel and Development, ISBN 0852929935, ISBN 9780852929933
•Senger, J. (2005) Designing A Not-For-Profit Compensation System. John Wiley.
• Sifleet, J. (2004) Beyond 401(k)S for small business owners: A practical guide to incentive, deferred compensation, and retirement plans. John Wiley.
• Smith, G. (2004) Leading the Professionals: How to Inspire & Motivate Professional Service Teams. Kogan Page.
• Stevenson, N. (2000) 10 Minute guide to motivating people. 2nd Edition, Alpha Books.
• Yanadori, Y., Milkovich, G.T. (2002) Origin of CEO and compensation strategy: Differences between insiders and outsiders. CAHRS/Cornell University.
• An additional list of recent internet-based materials (updated every year).
• Additional materials supplied by the tutor upon expression of individual interest by any of the students.
Средства за оценяване:
The assessment of the practical assignment shall take account of the language proficiency, the professional approach and the originality of the presented ideas.