Master of Management Studies (M.M.S) Compensation and Benefits Syllabus - Mumbai University 2026

Course objectives

• 1 To introduce students to compensation management principles and benefit administration practices.
• 2 To provide insights into various compensation strategies aligned with organizational goals and performance metrics.
• 3 To develop skills for designing and implementing comprehensive compensation plans and benefit packages.
• 4 To cultivate understanding of regulatory frameworks affecting compensation and benefit structures.
• 5 To enable critical evaluation of contemporary trends and ethical considerations in employee compensation.

Course outcomes

• CO1: To understand the key concepts, components, and legal aspects of Compensation and benefits & the strategic role of Compensation.
• CO2: To apply job evaluation methods and pay structures in real-world scenarios.
• CO3: To analyse Compensation data to assess internal and external pay equity and various Compensation models
• CO4: To evaluate the effectiveness of Compensation strategies in achieving organizational goals.
• CO5: To create an innovative and competitive Compensation and benefits plan for an organization. Unit/ Hours

Unit 1 CO1 · 3 hours

Introduction to Compensation and Benefits - Human Resources Philosophy and Perspectives on Compensation - Difference between Compensation and Benefits. - Approaches of organization for Compensation and Benefits - Global Compensation Approaches - Aligning Compensation Strategies with Business and HR Goals - Regulatory adherence

Unit 2 CO2 · 3 hours

Job Evaluation & Pay Structures - Job Evaluation - Process & Methods (Ranking, Classification, Point Method, Factor Comparison, Hay Guide) - Designing Pay Structures - Grade Pay, Pay Band and Broadband - Internal & External Equity

Unit 3 CO1, CO2, CO 4 · 3 hours

Reward Strategy & Elements of Reward Strategy - Articulating and understanding business context for reward strategies - Total Rewards Models, Equity- Expectancy Model - Reward Management - Benefits & Perquisites - Flexible Benefits, Employee Stock Options (ESOPs) and Phantom Stock Option Plan (PSOPs) - Legal Compliance

Unit 4 CO1, CO3, CO5 · 6 hours

Understanding Compensation Structure and Salary Framework - Costing the CTC of each element - Compensation Structure-Wages and Salary - Fixed;Cash Benefits; Retirals; Social Security; Variable Pay/Incentives/Stock Options; Forms of Pay – Base Pay, Merit Pay, Cost of Living - Elements in different salary slips - Consolidated and Separated Pay structure. - Designing a salary offer template - Evaluating and Understanding salary ranges - Extending a Salary Offer

Unit 5 CO1, CO5 · 3 hours

Understanding Inflation - Neutralization of Inflation - Dearness Allowance - Consumer Price Indices

Unit 6 CO1, CO2 · 3 hours

Employee Benefits and Social Security Schemes - Calculation of PF, ESIC, Gratuity, Superannuation - Approaches to Ex-gratia & Bonus

Unit 7 CO1, CO3, CO5 · 2 hours

Income Tax and Its Impact on Salary Structure - Understanding & Calculating Income Tax - Gross and Net Pay - Key Deductions

Unit 8 CO4, CO5 · 4 hours

Equity Compensation - Meaning, Objectives - Types of Stock Plans - Valuing Stock Grants - SEBI Guidelines - Taxability of Stock Options Performance-Based Pay Strategies - Pay-for-Performance Models - Merit Pay, Bonuses and Incentives - Profit Sharing & Gainsharing - Executive Compensation - Competitive Pay Policy

Unit 9 CO4, CO5 · 3 hours

Emerging Trends in Compensation and Benefits - Impact of Technology on Compensation Management - Gig Economy and its impact - Competitive Pay Policy Alternatives – Lead, Lag, Match - Pay Transparency - Ethics in Compensation Decisions

Textbooks

• 1 Compensation Management, Dipak Kumar Bhattacharya, Oxford Publications
• 2 Compensation Management in a Knowledge Based World, Richard I Henderson, Pearson Publications
• 3 Human Resource Management-Text and Cases, K. Aswathappa, McGraw Hill Education, 8th Edition

Reference Books

• 1 Managing Human Resources – Bohlander, Snell, Sherman
• 2 Berger, L. A., Berger, D. R., & Berger, L. A. The Compensation handbook. 6e, 2016. New York: McGraw-Hill Recommended Pedagogy
• 1 Interactive Lectures
• 2 Case studies
• 3 Videos
• 4 Application through Excel