Performance and Compensation System

Perfomance management and compensation systems are key components of the HR system and largely affect individual satisfaction and organizational performance. This course aims to provide students with the essential tools to understand, analyse and design strategic compensation systems in modern firms. Issues such as the relationship between compensation and performance, the complementarity between intrinsic and extrinsic rewards, the variety of bases for pay and the development of an effective pay structure will be analysed. The relevance of performance management systems as the basis for designing effective compensation strategies is also a central part of the course. The process of performance management, as well as the different types of appraisals will be discussed.
The objective will be pursued through theory-grounded study as well as through the practical and micro-founded analysis. Critical issues and problems related to performance management and compensation systems will be identified and examined to enhance a pragmatic approach.

At the end of the course, the student should be able to:
- Comprehend the different aims and the complexity of contemporary performace management and compensation systems
- Analyse performace management and compensation systems in relationship to firm strategy and performance
- Outline the different types of performance evalutation and pay policies
- Identify the main challenges inherent in setting up and managing a performance and compensation plan.
- Outline the main theoretical approaches in relationship to compensation management
- Evaluate the pros and cons of high performance pay policies
- Outline the main steps related to building a pay structure