This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 2 > 2,00 ECTS

Prerequisites

Students should have basic knowledge of the key concepts of Human Resources Management, Management and Organization Strategy.

Learning outcomes

- Understand the link between compensation and performance at individual level and company level:
- Be familiar with the main motivation theories in relation to compensation
- Apprehend the complexity of contemporary compensation systems and structures;
- Evaluate the pros and cons of compensation system and components in relation to performance management;
- Understand how compensation decisions are taken
- Analyze a compensation system in relation to firm strategy, culture and compensation philosophy
- Understand HR role in managing individual and team performance and building compensation systems
- Identify challenges regarding compensation when hiring, promoting, retaining and managing performance
- Understand internal and external constraints when building a compensation system
- Understand the role of performance assessment in pay-for-performance systems
- Understand market and law frameworks regarding compensation
- Get familiar with internal pay structures
- Apprehend compensation systems at international scale

Course description

PART ONE – Theoretical framework to understand the link between performance and compensation at individual and company levels
(Definitions of concepts; Compensation and motivation theories: equity, tournament, expectancy; Evolution of compensation understanding throughout history; HR role in compensation building, rewarding and driving performance; Compensation as a performance leverage when hiring, retaining, promoting; Corporate governance and stakeholders of compensation decisions)

PART TWO – Understanding compensation systems and components in relation to performance management
(Pay systems: traditional, pay-for-performance, skills-based; Forms of compensation: fix and variable salary, individual and group incentives, bonus and merit, profit-sharing; Benefits: tangible vs intangible, compulsory vs discretionary; Aims, pros and cons of compensation components; Choosing, implementing and monitoring compensation systems)

PART THREE: Concrete approach to building a strategic, competitive and fair compensation system that impacts performance positively
(Internal and external constraints when defining compensation level, structure and evolution: company strategy, market, legal framework, internal job classification, individuals’ skills, potential and performance assessment; Compensation within global companies)

Class type

Class structure

Teaching methods

• Case study
• Interactive class
• Presentation
• Project work
• Research

Assessment

Participation during class discussions (individual and in-class - 10%); Individual case study (at home; 40%); Group project (50%, assessed content as well as oral skills).

Recommended reading

• HENEMAN Robert L, Business-Driven Compensation Policies: Integrating Compensation Systems With Corporate Strategies, 2000 -

• KOSS Shannon, Solving the Compensation Puzzle: Putting Together a Complete Pay and Performance System (Practical HR), 2008 -

• WALKER Elaine, Compensation Basics for HR Generalists, 2006 -

• SCHUSTER R. Jay, The new pay : Linking employee and organizational performance, 1999 -

• JIANG Zhou, Total Reward Strategy: A Human Resources Management Strategy Going with the Trend of the Times, International Journal of Business and Management, 2009 -