King Abdulaziz University

Faculty of Economics and Administration

Department of Business Administration

Course: HRMA 347, Section DAR

Course Title: Compensation and Benefits

Class Meetings: 1st Semester 2019
Section DAR: Monday & Wednesday, 09:30 AM – 10:50AM
Building 67, Floor: First, Room #: 171
Instructor: Dr. Komal Khalid
Building # 67 (Room # 143)
E-mail: kmuddassar@kau.edu.sa

Office Hours: Sunday & Tuesday, 10:30 AM– 01:30 PM

Monday & Wednesday, 11:00AM - 12:30 PM
or by appointment
Textbook: Compensation
by George T. Milkovich and Jerry M. Newman,
11th edition
McGraw-Hill/ Irwin Press
Course This course studies compensation systems, (which include wage and
Description: salary administration, incentive plans, and employee benefit programs),
as important tools for attracting, motivating, and retaining employees.
The course will consist of the key Compensation concepts with the
related bases for strategic compensation decisions. Detailed descriptions
have covered the various approaches in fixing compensation of the
employees focusing on person-based dimensions, analysis of the market
trends and creating an internal driven system. The course concludes on
the present Compensation challenges that are existing in the business
environment.
Course Objective: This course provides a systematic examination of choices that confront
managers who wish to manage compensation strategically. These
choices are presented within a three-stage integrated decision-making
framework designed to create truly strategic compensation and reward
systems. The three stages are described as a Total Compensation Model
that incorporates:
1. Formation of strategic policies concerning internal alignment,
external competitiveness, employee contributions and
administration of the pay system.
2. Selection of pay techniques that effectively link above noted
policies to the attainment of compensation objectives through
sequential decisions about internal structure, pay structure,
incentive programs and various forms of evaluation.
 3. Attainment of strategic compensation objectives such as
efficiency, fairness and legal compliance.

Course Outcomes: Upon successful completion of this course, the student will have reliably
demonstrated the ability to:
1. Design and maintain a pay system that is consistent for
employees within the organization (internal consistency).
2. Design a pay structure that will ensure the firm is competitive
with other similar firms (external competitiveness), and conduct
a market survey to determine appropriate pay levels.
3. Identify and describe a variety of reward systems used to
determine individual pay levels.
4. Identify and describe typical employee benefits components and
systems, and describe in detail those that are legally required.
5. Implement and administer a compensation system according to
the firm's policies and the legal requirements.

Policies for Scholastic honesty is an educational objective of KAU, and foundation upon
scholastic conduct which academic integrity rests.
Due to following reasons the instructor will give a lower grade or fail a student
depending upon the severity of the case:
1. Students’ scholastic honesty demands the pursuit of scholarly activity
free from fraud, deception and unauthorized collaboration with others.
Scholastic dishonesty includes: cheating, collaborating on assignments,
submitting work or written materials which have been prepared by
another person and plagiarism.
2. Copying another person's answers in an assignment, paper, project
report, etc. and presenting it, either wholly or with only minor changes,
as if it were the student's own work.
Working with others on an assignment which is intended to be an individual
assignment, and incorporating their material into your work.
Performance Student performance is evaluated as follows:
Evaluation: Exam ( I ) ------------------------20 There is no make-up for these exams.
Exam ( II ) ----------------------- 20 These exams may consist of multiple
Lecture Notes -------------------- 05 choices and essay questions.
Presentation and Report ------- 15
Final Exam ----------------------- 40
Attendance: Students are expected to attend every class. Any student who absent
more than 4 classes will be denied from completing the course (i.e., DN).
Participation and I highly appreciate student participation in class discussion. Your
Class Activities: participation will enhance your understanding of the subject and overall
performance.
Class activities (e.g., assignments, home works, discussions, group work
and project) will be further clarified. These activities worth 20 points of
your total grade.
 Course Contents and Schedule

Week Date Topic

(Week starting) CHAPTERS
2/09 Chapter 1
1 The Pay Model

9/09 Chapter 2
2 The Totality of Decisions
16/09 Chapter 3
3 Defining Internal Alignment

23/09 Chapter 4
4 Job Analysis

Midterm 1 on Please check the date (Chapters 1, 2, 3 & 4)

30/09 Chapter 5 Job based Structure and Evaluation

5

6 7/10 Chapter 6 Person-Based Structures

7 14/10 Chapter 7 Defining Competitiveness

21/10 Chapter 8 Designing Pay Levels, Mix, and Pay Structures
8, 9

Midterm 1 on Please check the date (Chapters 5, 6, 7 & 8)

Chapter 9
10 4 / 11 Pay-for-Performance: The Evidence
Chapter 10
11 11/11 Pay-for-Performance Plans

18/11 Chapter 12 The Benefit Determination Process

12
25/11 Chapter 14 Compensation of Special Groups
13
Chapter 16 International Pay Systems
14 2/12

15 9/12 Revision

FINAL EXAMS (Chapters 3, 8, 9, 10, 12, 14 & 16 )

Best wishes to you all

Note:
1. This is a tentative timeline. Students are expected to read the assigned
chapter(s)/readings/cases before the corresponding class period. Students are responsible
for knowing the assigned material.
2. The exact date of the Exams and other assignments and its deadlines will be announced in
the classroom, stick to the deadlines as announced in the class