HRM831 - Design and Administration of Compensation Plans

Outline info
Last revision date 2018-07-03 14:24:56.899
Last review date 2018-07-16 00:15:00.806

Subject Title
Design and Administration of Compensation Plans

Subject Description
The purpose of this subject is to examine the principles, processes and theories involved in the design and administration of compensation programs. Emphasis is placed on linking compensation strategy to corporate strategy, applying behavioural theories in the design of compensation programs and implementing, managing and adapting compensation programs.

Credit Status
One credit.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

  1. Outline strategic compensation issues and describe the pay model.
  2. Define consistency as it applies to employee compensation.
  3. Outline methods for describing and assessing work using job analysis.
  4. Outline various methods for evaluating work: job evaluation, knowledge-based plans and market pricing.
  5. Discuss the administrative processes associated with the evaluation of work.
  6. Define competitiveness as applied to employee compensation.
  7. Design a basic pay structure.
  8. Outline how employee performance and contributions can be effectively recognized in pay practices.
  9. Describe performance evaluation and merit pay systems.
  10. Describe alternatives to traditional reward systems.
  11. Describe benefits determination process.
  12. Explain the government's role in compensation.
  13. Outline the process of implementing a pay equity plan in the Province of Ontario.
  14. Outline key compensation budgeting and administration issues.
  15. Demonstrate effective written and verbal skills via case analysis, assignments, exams and in-class participation and presentations.

Essential Employability Skills
Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfils the purpose and meets the needs of the audience.

Respond to written, spoken, or visual messages in a manner that ensures effective communication.

Use a variety of thinking skills to anticipate and solve problems.

Locate, select, organize, and document information using appropriate technology and information systems.

Analyze, evaluate, and apply relevant information from a variety of sources.

Manage the use of time and other resources to complete projects.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.


However, it is recommended that students begin their studies with HRM701, Introduction to Human Resources Management, if they plan to pursue the Human Resources Management Graduate Certificate. 

Topic Outline

  • Strategic Issues and Concepts
    • Link with organization goals, strategies and environment 
    • Elements of the compensation package
    • Compensation goals  
  •      Employee Benefits & Preferences
    • Elements of benefit packages
    • Employee preferences
    • Statutory vs. non-statutory benefits
    • Flex plans
  •             Relevant Theories and their Application
    • Equity theory 
    • Expectancy theory
    • Economic theories
    • Pay satisfaction 
    • Internal, external and employee equity
  •             Collecting Information About Jobs
    • Job analysis 
    • Types of information needed 
    • Methods of data collection
  •      Job Evaluation
    • Non-quantitative methods 
    • Quantitative methods 
    • Commercial available plans 
    • Equal pay and job evaluation
  •             Pay Level Policy, Pay Surveys and Pay Structure
    • Lead, lag or matching policies 
    • Methods of surveying 
    • Interpretation of survey data
    • Updating survey information 
    • Salary ranges and grades
  •             Individual Pay Determination
    • Pay performance linkage
    • Merit systems 
    • Performance measurement systems
    • Rating errors 
    • Merit pay schedules 
    • Incentive systems  
  •      Implementation and Administration
    • Monitoring and controlling 
    • Communication and gaining acceptance 
    • Treatment of overpaid and underpaid employees 
    • Use of computers 
  •             Employee Benefits and Preferences
    • Elements of benefits packages
    • Employee preferences
    • Cafeteria/flexible plans
    • Statutory vs. non-statutory benefits  
  •      Miscellaneous Issues
    • Compensation of special groups
    • Pay equity
    • International compensation

Mode of Instruction
A combination of teaching methods will be utilized which may include lectures, case studies, discussions, group and individual work.

This course is delivered online. This may involve the use of digital materials and/or a text, group discussions, interaction with your instructor and online activities. 

Prescribed Texts

Title: Strategic Compensation in Canada
Edition: 6E
Author(s): Long, Richard J
Publisher: Nelson
ISBN: 9780176657161
(new edition Summer 2017)


Title: Compensation
Edition: 5th
Author(s): Milkovitch, Newman, Cole
Publisher: McGrawHill
ISBN: 9781259257292

Reference Material

Required Supplies

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online ( or at Seneca's Registrar's Offices.

Modes of Evaluation
Assignments are due on the dates specified. Should extenuating circumstances arise, please contact your instructor immediately, prior to when your assignment is due, so an appropriate course of action can be established. Late assignments may be subject to a penalty of up to 10% per week and will not generally be accepted beyond two weeks after the assignment due date.

In cases of cheating or plagiarism, the College Academic Policy will prevail.  Please ensure that all assignments and reports are properly documented.

Students are referred to the following web site for the Seneca College Library MLA Style Guides, Academic Honesty Policy and Copyright guidelines:  


Dates for evaluations are specified in the weekly schedule addendum to this outline. The evaluation process may include, but is not limited to, tests, exams, assignments or presentations. Any absences or missed submissions due to medical or other reasons must be supported by medical or other appropriate documentation within one (1) week of the due date. The faculty and program area must be notified immediately in the even of a missed evaluation. Upon acceptance of the documentation, the weighting of the missed deliverable will normally be applied to the final exam.

English Competency:

The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this course in both oral and written work. Ensure your written work includes correct sentence structure, spelling and punctuation. Always spell check, edit and proofread your work.

Grading is based on the following marking scheme: 

In-class:   Online:   Accelerated Online (7 weeks):  
Assignment #1         10% MC Questions              20% Assignments 65%
Assignment #2 15% Assignments 45% Final Exam ** 35%
Mid Term Test 30% Final Exam ** 35%    
Final Exam 35%        

** Final Exams: The final exam for online courses must be written at the Test Centre of the College at which you registered. If you are unable to do so, please make alternative arrangements through the College at which you registered. All the academic policies of the College at which you registered apply. This includes, but is not limited to, policies related to grading, supplemental exams, deferred exams and accommodations.

Please retain this course outline document for future educational and/or employment use.

Academic Program Manager:
Emiliano Introcaso

Approved by: Academic Program Manager Emiliano Introcaso