Compensation and Incentives

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Compensation and Incentives

This course provides a quick introduction to the four key decisions in compensation design, as well as the compensatory factors and objectives underlying the design of an organization´s compensation system. It is aimed to help students understand the major elements in and the influences of a compensation system.

Applicants: 4

¥680

Enroll

THIS COURSE IS INCLUDED IN Human Resource Management in China Certificate Program

Time commitment:

2-3 hours/week, 2 weeks

Pace:

Self-paced

Subject:

Organizational Management

Language:

English

Level:

Introductory

Topic (s):

HR Management

About this course

Business leaders often ask, "What´s the best compensation practice to use?" This is a complex question. A compensation plan should be very contextual and tailored to factors such as an organization´s stage of development, business type, strategy, organizational structure, and etc. To find an answer to this question, you will find it is very important to understand some basic concepts of compensation and incentives. This course covers these key topics, including compensation and compensational factors, objectives in compensation design, and how pay level, pay structure, pay categories, and pay communication affect employee performance and withdrawal behaviors.

What you’ll learn

The definition of compensation and the different types of compensation plans
Compensatory factors underlying an employee´s compensation package
The two primary objectives of a compensation strategy
Key decisions to make when designing a compensation plan
The influences of pay level, pay structure, pay categories, and pay communication on employee performance and withdrawal behaviors

About the instructor(s)

Xueqing (Skye) Fan

Assistant Professor at Antai College of Economics and Management of Shanghai Jiao Tong University

Syllabus

Session
1

Compensation and compensatory factors

This session defines compensation and differentiates two forms of compensation: intrinsic compensation and extrinsic compensation. Based on that, key compensatory factors are elaborated from a legal perspective. The two major objectives in compensation design are also discussed.
Session
2

Pay level and organizational outcomes

Compensatory factors and two major objectives in compensation design drive four basic pay policy decisions: the level of pay, the structure of pay, the categories of pay, and pay communication. This session delves into what factors affect pay level, which thus may affect important employee outcomes.
Session
3

Pay dispersion, pay for performance, and pay communication

This session discusses how pay dispersion, pay for performance, and pay communication affect employee performance and retention. The factors that lead to pay dispersion are discussed. The effect and unintended consequences of pay for performance are elaborated. The pros and cons of pay transparency are also analyzed.
Session
4

Compensation and Incentives Quiz

Please respond to all questions. A passing grade of 70/100 is required, but you are allowed 5 attempts to pass the quiz. You have one year's time to complete your quiz since successful registration of the course/program.