Finance for HR Professionals and Compensation Management – Revised TYBMS Syllabus 2016

Modules at a Glance

SN Modules No. of Lectures
 1  Compensation Plans and HR Professionals  15
 2  Incentives and Wages  15
 3  Compensation to Special Groups and Recent Trends  15
 4  Legal and Ethical issues in Compensation  15
 Total  60

Finance for HR Professionals and Compensation Management – Syllabus Overview

SN Modules/ Units
 1 Compensation Plans and HR Professionals 
• Meaning, Objectives of Compensation Plans, Role of HR Professionals in Compensation Plans, Types of Compensation: Financial and non-financial, Factors Influencing Compensation
• Compensation Tools: Job based and Skill based, Models: Distributive Justice Model and Labour Market Model, Dimensions of Compensation
• 3 Ps Compensation Concept, Benefits of Compensation: Personal, Health and Safety, Welfare, Social Security
• Pay Structure: Meaning, Features, Factors, Designing the Compensation System, Compensation Scenario in India.
 2  Incentives and Wages
• Incentive Plans – Meaning and Types: Piecework, Team, Incentives for Managers and Executives, Salespeople, Merit pay, Scanlon Pay, Profit Sharing Plan, ESOP, Gain Sharing, Earning at Risk plan, Technology and Incentives. Prerequisites of an Effective Incentive System
• Wage Differentials: Concepts, Factors contributing to Wage Differentials, Types of Wage Differentials, Importance of Wage Differentials, Elements of a Good Wage Plan.
• Theories of Wages: Subsistence Theory, Wage Fund Theory, Marginal Productivity Theory, Residual Claimant Theory, Bargaining Theory.
 3  Compensation to Special Groups and Recent Trends
• Compensation for Special Groups: Team Based pay, Remunerating Professionals, Contract Employees, Corporate Directors, CEOs, Expatriates and Executives.
• Human Resource Accounting – Meaning, Features, Objectives and Methods
• Recent Trends: Golden Parachutes, e-Compensation, Salary Progression Curve, Competency and Skill based, Broad banding and New Pay, Cafeteria approach – Features, Advantages and Disadvantages.
 4  Legal and Ethical issues in Compensation
• Legal Framework of Compensation in India: Wage Policy in India, Payment of Bonus Act 1965, Equal Remuneration Act 1976, Payment of Wages Act 1936, Payment of Gratuity Act 1972, Employee Compensation Act 1923, Employees Provident Funds and Miscellaneous Provision Act 1952.
• Pay Commissions, Wage Boards, Adjudication, Legal considerations, COBRA requirement, Pay Restructuring in Mergers and Acquisitions, Current Issues and Challenges in Compensation Management, Ethics in Compensation Management.

Reference books for subject: Finance for HR Professionals and Compensation Management

Finance for HR Professionals and Compensation Management : ~ 
1. Gary Dessler, Biju Varkkey, Human Resource Management, Pearson, 12th edition
2. Mick Marchington and Adrian Wilkinson, Human Resource Management at Work – People Management and Development- IIIrd Edition,
3. Shashi K. Gupta, Rosy Joshi, Human Resource Management, Kalyani Publishers
4. Gary Dessler, Framework for HRM, 3rd Edition, Pearson Education
5. Ashwathappa, Human Resource Management
6. Luis.R.Gomez, David.B.Balkin, Robert. L. Cardy, Managing Human Resources – IVth Edition, (Eastern Economy Edition)
7. Milkovich, George T, Newman J.M, Compensation, Tata Mc Graw Hill.
8. Henderson, R.O, Compensation Management, Pearson Edition .
9. BD Singh, Compensation and Reward Management, Excel Books.
10. Karen Permant, Joe Knight, Financial Intelligence for HR Professionals
11. Sharma A.M, Understanding Wage system, Himalaya Publishing House, Mumbai



The following two tabs change content below.
We, at, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

Leave a reply is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account