Departement of Management Graduate School of Management ... · VISI DAN MISI FAKULTAS EKONOMI DAN...

Dr. Ir. Manerep Pasaribu

COMPENSATION AND BENEFIT STRATEGYSyllabus (Odd Semester 2019/2020)

Faculty of Economic and BusinessDepartement of ManagementGraduate School of Management

ECMS 804004

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SYLLABUS Compensation and Benefit StrategyFaculty of Economic and BusinessDepartement of Management Graduate School of Management


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VISI

• Menjadi pusat pembelajaran ekonomi dan bisnis yang bereputasibaik di Asia sehingga berkontribusi terhadap pembangunanIndonesia dan masyarakat global.

MISI

• Berkontribusi pada pengembangan pengetahuan di bidang ekonomi dan bisnis

• Menyiapkan pemimpin yang memiliki tanggung jawab sosial dan mampu menghadapi perubahan lingkungan global.

VISI DAN MISI FAKULTAS EKONOMI DAN BISNIS

UNIVERSITAS INDONESIA

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Visi PPIM FEUI

”Menjadi Pusat Pengembangan Pengetahuan

Manajemen berbasisPenelitian dan Pengajaranyang terkemuka di Asia”

Visi2020

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Subject Code ECMS804004

Subject Title COMPENSATION AND BENEFIT STRATEGY

Credit Value 3

Year/Semester I/1 AND 2

Day/Hour THURSDAY / 6.30 – 9.00 PM (KHUSUS)

Subject Type COMPULSORY

Pre-requisite/

Co-requisite/

Exclusion

NONE

Role and Purposes

• Compensation and benefits have always been an issue for organisations. By

developing a right compensation and benefits packages for employees,

organisation can influence the employee behaviour while also retain its best

people.

• Compensation can create competitive advantage for organisation; but on the other

hand, it can also make organisation goes bankrupt as the packages offered do not

match with the organisation strategy and its environmental contexts. Thus, it is

important to understand the aspects influencing compensation and hoe to develop

right compensation package for organisation base on those aspects

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Subject Learning Outcomes

Participants of this unit are expected to obtain these

competencies:

• Able to explain model of pay which can be offered by

organisation

• Able to analyse factors influencing internal alignment and

external competitiveness of compensation in case studies or

papers on compensation

• Able to analyse case studies or papers on different benefits

offered based on theory understanding on the dynamics of

benefits offered by organisation

• Able to analyse compensation package for special groups:

professionals and expatriates

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Subject Code ECMS804004

Subject Title COMPENSATION AND BENEFIT STRATEGY

Credit Value 3

Year/Semester I/1 AND 2

Day/Hour

Subject Type COMPULSORY

Pre-requisite/Co-requisite/Exclusion

NONE

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Role and Purposes • Compensation and benefits have always been an

issue for organisations. By developing a right

compensation and benefits packages for employees,

organisation can influence the employee behaviour

while also retain its best people.

• Compensation can create competitive advantage for

organisation; but on the other hand, it can also make

organisation goes bankrupt as the packages offered

do not match with the organisation strategy and its

environmental contexts. Thus, it is important to

understand the aspects influencing compensation

and hoe to develop right compensation package for

organisation base on those aspects.

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Subject Learning

Outcomes

Participants of this unit are expected to obtain

these competencies:

• Able to explain model of pay which can be offered

by organisation

• Able to analyse factors influencing internal

alignment and external competitiveness of

compensation in case studies or papers on

compensation

• Able to analyse case studies or papers on different

benefits offered based on theory understanding on

the dynamics of benefits offered by organisation

• Able to analyse compensation package for special

groups: professionals and expatriates

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Subject Synopsis/Indicative Syllabus #1-2

Week# Topics Reference Case

1Introduction to Compensation and

Compesation Strategy

MNG 1

M 1Interactive Lecturing

2Compensation Strategy and Internal

Alignment

MNG 2,3/M1/

Articles 1/2

The Role of Labor

Costs in Retail

Electronics (Chapter

1 MNG)

3Building internal consistency of compensation

system: Job analysis and job evaluation

MNG 4,5/

M 6/

Articlesl 3/4

The Customer-

Service Agent

(Chapter 4 MNG)

4Building internal consistency of compensation

system: Person-based pay

MNG 6/

M 5/

Articles 5/7

Climb the Legal

Ladder (Chapter 6

MNG)

5Building Market-competitive compensation

system: Defining competitiveness

MNG 7/

Articles 11/12

Combining Pay

Survey and Job

Evaluation Data

(Chaoter 7 MNG)

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6

Building Market-competitive compensation

system: Designing Pay Levels, Mix, and

Structures

MNG 8/

M 7/

Articles 17/18

Google’s Evolving

Pay Strategy

(Chapter 8 MNG)

7Employee Contribution: Determine Individual

Pay (CL)

MNG 9, 10

M 8/

Articles 19/20

Burger Boy (Capter 9

MNG)

MID -TERM EXAM

8 Incentive Pay M 4

9Employee Benefits: Determination Process

and Options

MNG 12,13

M 9

10 Compensating ExecutivesM 12

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11Managing the System: The roles of union,

government, and management.

MNG 15,

17, 18

12Global Total Compensation: International pay

system and compensating expatriates

MNG 16

M 14

13 Final Presentation

14 Final Presentation

FINAL-TERM EXAM

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Learning Method

Details of learning method

No. 1. Group Presentation

After the first and eighth sessions, a group of students will deliver a

presentation covering the session’s topic and the reading

materials, including a case analysis for each session.

Presentations will cover all topics and the assigned reading for the

session. Students should focus the presentation on the theories as

explained in the textbook and article reading as well as a brief

summary of the case study.

• Every week each group must present the summary of all papers

assigned by the facilitators.

• The paper shall be presented in a PowerPoint presentation and

be not more than 25 slides.

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Learning Method


No. 2 Reading Material Summary (for students not presenting,

Individual Participation)

• Each student has to write a reading material summary, which

synthesizes (combines) the chapter, the article, and the case

analysis in each session.

• The summary should not exceed 3 pages, not including visuals

(tables, graphics, etc.)

• The writing should be a formal essay, not a Powerpoint

presentation.

• The summary should be written in Indonesian or English.

• Participants are expected to be proactive in sharing their

insights in the class, and mastering the content of the papers.

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Learning Method


No. 3. Mid Semester Exam

Covering only the sessions in the first half of the semester. Covering only

the books and journal articles on that period. Each lecturer prepares the

open book exam.

No 4. Final Examination

Covers the sessions in the second half of the semester. Covers only the

books and journal articles on that period. Each lecturer prepares the open

book exam.

No. 5 Students’ Final Score

Students’ final scores are the average of both halves of the semester.

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Teaching/Learning

Methodology

We are primarily using a combination of traditional lecturing approach

and class discussion as the method of teaching, with an emphasis on

group debates. The success of this subject is based on class

participations in every session of regular class meetings. The students

are required to read lecturing materials before attending class

Participation:

Individually, each student is required to participate actively in teaching and

learning:

1. Ask questions in accordance with the topic.

2. Prepare yourself to answer questions.

3. Discuss issues related to the topic.

To be eligible, students must read textbooks and other materials provided.

Attendance:

Minimum 80% of Total Lecture:

1. A maximum of 3 (three) times absents, for no reason.

2. Students who came 15 minutes after class begins are considered not

present

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Assessment Method in Alignment with Intended

Learning Outcomes

Description Percentage of Evaluation (%)

Class Participations BONUS

Group Presentations 25%

Individual Summary 25%

Mid-term Exam 25%

Final-term Exam 25%

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Student Study Effort Expected

• Class Contacts:

Lecture 7.5 Hours

Presentation 27.5 Hours

• Other student study effort:

Preparation for

project/assignment/tests18 Hours

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Reading List

and References

Recommended References:

Milkovich, G., Newman, J., Gerhart, B. (2017). Compensation

(12th. edition). New York: McGraw-Hill Irwin. (MNG)

Martocchio, Joseph J. (2013). Strategic Compensation: A

Human Resource Management Approach (7th edition). New

Jersey: Pearson. (M)

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1. Structure and Process of Diversification, Compensation Strategy, And Firm Performance (Luis R.

Gomez-Mejia)

2. What’s Wrong With Executive Compensation? (Jared D. Harris, 2009)

3. A Model Capturing Ethics and Executive Compensation (Rodgers and Gago, 2003)

4. A Model Of Person-pay Interaction, How Executives Vary In Their Responses To Compensation

Arrangements (Wowak and Hambrick, 2012)

5. An Experiential Approach To Developing A Pay Structure, Insights From Teaching Compensation

Management (Mahajan, 2012)

6. Business strategy and top management compensation, the mediating effects of employment risk,

firm performance and size (Veliyat, Ferris & Ramaswamy, 1994)

7. CEO Pay Fairness As A Predictor of Stakeholder Management (Fong, 2010)

8. Differences between union and nonunion 2001-2011(George I. Long, 2012)

9. Do Workers Work More if Wages are High, Evidence From A Randomized Field Experiment

(Fehr and Goette, 2007)

10. Does Best Practice in Setting Executive Pay in The UK Encourage Good Behaviour (Bender and

Moir, 2006)

Articles #1

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11.Does Industry affiliation influence wages, evidence from Indonesia and the Asian financial crisis

(Mehta and Sun, 2013)

12. Employees Compensation and Organization Financial Performance (Javed et al, 2010)

13. Employees Compensation and Organization Financial Performance (Javed et al, 2010)

14. Executive Compensation and Corporate Governance in China (Conyon and He, 2011)

15. Executive Compensation, A Multidisplinary Review of Recent Developments (Devers et al, 2007)

16.

Executive Pay and The Search for Legitimacy: An Investigation Into How UK Remuneration

Committees Use Corporate Performance Comparisons in Long-Term Incentive Pay

Decisions (Stuart Ogden and Robert Watson, 2008)

17.firm Profitability, Regional Unemployement and Human Capital in Wage Determination (Johansen

et al, 2001)

18. Firm-Size Wage Gaps, Job Responsibility, and Hierarchical Matching (Fox, 2009)

19.How much does the CEO matter, the role of managerial discretion in the setting of CEO

compensation (Finkelstein and Boyd, 1998)

20.Incentives For Managers and Inequality Among Workers, Evidence From A Firm-Level

Experiment (Bandiera et al, 2007)

Articles #2

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21.Industry Structure and Labor Market Flexibility in The South African Manufacturing Sector: A Time

Series and Panel Data Approach (Johannes W. Fedderke and Andrew J. Hill, 2011)

22.Pay Comparability Across and Within UK Boards: An Empirical Analysis of The Cash Pay Awards

to CEOs and Other Board Members (M. Ezzamel and R. Watson, 2002)

23.Sharing The Wealth, Social Comparisons and Pay Dispersion in The CEO Top Team

(Fredrickson et al, 2010)

24.The Costs and Benefits of Managerial Incentives and Monitoring in Large US Corporation (Zajac

and Westphal, 1994)

25. The Effects of Cultural Orientations on Preferred Compensation Policies (Yeganeh and Su, 2011)

26. Top Executive Remuneration, A View from Europe (Bruce et al, 2005)

27.Wage Differentials in The Presence of Unobserved Worker, Firm, and Match Heterogeneity

(Woodcock, 2008)

28.What Makes Workers Happy, Anticipated Rewards and Job Satisfaction (Linz and Semykina,

2012)

Articles #3

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Plagiarism Plagiarism is defined as inserting words/sentences/ideas belonging to other author/s

in part or in whole without referring to the sources. Students must indicate the source

of any words/sentences from other author/s in his/her writing.

Plagiarism also refers to the copying in part or in whole other student’s assignment, or

copying from books, journals, web, magazines, newspapers, etc.

Plagiarism includes also the act of auto-plagiarism defined as the use of one’s own

words/sentences/ ideas taken from other assignment/paper that have been submitted

for grading in other or the same course without any reference to its/their source/s.

In accordance to the disciplinary rules and code of ethics for students as indicated ont

the Guidebook of FEBUI, students are prohibited to conduct plagiarism, and will be

sanctioned/punished accordingly.

The sanctions/punishment are as follows:

• First time offense, the minimum sanction is a Zero (0) grade for the assignment

or maximum an F

• Second time offense, the grade for the course will be an F.

• Third time offense, the student will be expelled from Department of Management,

FEBUI.

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Statement

of

Authorship

It is mandatory that a Statement of Authorship must be included and posted on the front

page of the assigned paper.

Statement of Authorship

I/We.........................the undersigned declare to the best of my/our ability that the

paper/assignment herewith is an authentic writing carried out by myself./ourselves. No

other authors or work of other authors have been used without any reference to its

sources.

This paper/assignment has never been presented or used as paper assignment for other

courses except if I/we clearly stated otherwise.

I/We fully understand that this assignment can be reproduced and/or communicated for

the purpose of detecting plagiarism.

Name :

Student’s ID Number :

Signature :

Course :

Paper/Assignment Title :

Date :

Lecturer :

(signed by all and every single student if its a group assignment)

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ECMM 801021 STRATEGIC MANAGEMENT Syllabus


Program Studi Magister Manajemen

Case Study

Case Analysis

Theory (Chapter)

Synthesizing/Combining

Articles

Group Presentation

Individual Reading

Summary

Max. 25 pages

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2018

Max. 3 pages

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