Upon completing this course, students are expected to understand the following concepts and their pratical applications:
MNG: Milkovich, Newman, GErhart (2014) Compensation, 11th edition. McGraw Hill.
LG: Lazear and Gibbs (2009) Personnel Economics in Practice, 2nd edition. John Willey & Sons.
Bandiera, O., Barankay, I., and Rasul, I. (2007) Incentives for managers and inequality among workers: Evidence from a firm-level experiment. Quarterly Journal of Economics, 122(2): 729-773.
Baron, J. M., Berger, M. C. and Black, D. A. (2006) Selective counteroffers. Journal of Labor Economics, 24(3): 385-409.
Fehr and Schmidt (2006) The economics of fairness, reciprocity and altruism–experimental evidence and new theories. In Kolm and Ythier (Eds) Handbook of the economics of giving, altruism and reciprocity, vol 1.
Hossain, T. and List, J. (2012) The behavioralist visits the factory: Increasing productivity using simple framing manipulations. Management Science, 58(12): 2151-2167.
Lazear, E. P. (2000) Performance pay and productivity. American Economic Review, 90(5): 1346-1361.
Shaw, J., Gupta, N. and Delery, J. (2002) Pay dispersion and workforce performance: Moderating effects of incentives and interdependence. Strategic Management Journal, 23: 491-512.
Zubanov, N. (2012) Risk aversion and effort in an incentive pay scheme with multiplicative noise: Theory and experimental evidence. ERIM working paper ERS-2012-005-STR. Available at http://hdl.handle.net/1765/32031.
This course aims to give broad introduction to the management of employee compensation and benefits (C&B). Starting with discussions about the importance of C&B to workers and firms, proceeding to theoretical foundations of wage setting and the effects of C&B practices on organizational performance. The role of C&B in strategic management of human resources will also be mentioned together with practical implications for the design of C&B schemes. Theoretical and empirical studies on C&B and firm performance will be presented as part of the course.
Professor Nick Zubanov
Type of Course:
Lecture and tutorials
Certification of credits:
Written exam of 90 minutes