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  1. 1. ORGANISATIONAL PSYCHOLOGY SECTION in the SCHOOL OF MANAGEMENT STUDIES BUS5033W: ORGANISATIONAL PSYCHOLOGY MASTERS BUS5033W REWARD MANAGEMENT AND TALENT RETENTION ESSENTIAL INFORMATION 2008 Course Convener: A/Prof Burger van Lill Room 4.35 Leslie Commerce Building E-mail: Lecturer: Dr Anton F. Schlechter Room 4.36 Leslie Commerce Building E-mail: Administrator: Mrs Fazeela Felton Room 4.34 Leslie Commerce Building E-mail: Lecture times: Tuesdays at 17:00 – 19:00 Lecture venue Room 3.08 in the Leslie Commerce Building Course duration: 9 July – 4 November 2008
  2. 2. Course Overview Organisational success is as much a function of the way business practitioners manage employees, as it is the function of organisational structures and financial resources. Compensating employees represents a critical human resource practice. Without sound compensation systems, companies cannot attract and retain the best-qualified employees. Compensation systems can promote companies’ competitive advantage when they are properly aligned with strategic goals. The aim of this course is to provide students with the required knowledge of the art of strategic compensation practice so that they, as strategic partners, may play a role in ensuring an organisations’ competitive advantage. One of the greatest challenges facing companies today is retaining top talent. The expense to an organisation of replacing an employee (including separation, replacement, training and lost performance costs) can be as much as that employee’s salary for a year. Turnover further erodes morale among those employees that remain in the organisation and harms customer retention. This course aims to help students understand turnover intentions and will show them how they can assist organisations to gain a competitive advantage through being able to keep their most valued employees. Learning Outcomes After completion of this module, students should have a good understanding of: • what an equitable reward programme is; • when reward discrimination is justified and how to design models for rewarding special groups; • how to deal with inequitable rewards; • retention strategies that organisations can make use of to retain top talent. Course Content and Course Materials This course consists of the following sections. The required readings for each of these sections are provided and should be consulted as preparation for the section. Week 1-4: Strategic Compensation and Fair Discrimination in Reward Management • Reward analyses as strategic interventions. • Factors influencing reward management decisions. • The strategic role of compensation in ensuring competitive advantage. • Legally required and discretionary employee benefits. • Costs/benefits of flexibility in compensation systems. • Reward equity analyses • Reward disparities and how to deal with them • Rewarding special groups as fair discrimination practice • BEE share schemes Readings: Burke, L.A., & Hsieh, C. (2006). Optimizing fixed and variable compensation costs for employee productivity. International Journal of Productivity and Performance Management, 55(2), 155-162. Bussin, M., & Huysamen, D. (2004). Factors driving changes to remuneration policy and outcomes. South African Journal for Human Resource Management, 2(2), 45-54. Conley, P., & Lassonde, S. (2004) Using long-term incentives to retain top talent: Super Rewards for Superkeeprs.. In L.A. Berger, & D.R. Berger (Eds.), The Talent Management Handbook (pp. 399-412). New York: McGraw-Hill.
  3. 3. Dougherty, D. (2003). Human Resource Strategy: A Behavioural Perspective for the General Manager. New York: McGraw-Hill Irwin. Chapter 4: Reward and Compensations Systems. Grigoriadis, C., & Bussin, M. (In Press). Current practice with regard to short-term incentive schemes for middle managers. Madell, M. (2004) Linking Competencies to Performance and Pay. In L.A. Berger, & D.R. Berger (Eds.), The Talent Management Handbook (pp. 384-398). New York: McGraw-Hill. Montemeyer, E.F. (1996). Congruence between pay policy and competitive strategy in high- performing firms. Journal of Management, 22(6), 889-908. Muczyk, J.P. (1988). The strategic role of compensation. Human Resource Planning, 11(3), 225-239. Rosen, A.S., & Wilson, T.B. (2004). Integrating compensation with talent management. In L.A. Berger, & D.R. Berger (Eds.), The Talent Management Handbook (pp. 351-364). New York: McGraw-Hill. Rosenbloom, J.S. (2005). The future of employee benefits. Journal of Financial Service Professionals, 59(1), 61-65. Williamson, J.A., & Kleiner, B.H. (2004). The use of options in compensation packages. Management Research News, 27(4/5), 23-31. Zingheim, P.K. (2004) Compensating Superkeepers: Talent your company needs to thrive. In L.A. Berger, & D.R. Berger (Eds.), The Talent Management Handbook (pp. 365-383). New York: McGraw-Hill. Zingheim, P.K., & Schuster, J.R. (2007). What Are Key Pay Issues Right Now? Compensation Benefits Review, 39, 51-55. Week 5-9: Talent Retention • Integrating compensation with strategic talent management. • The psychological and motivational processes the lead to job withdrawal and the decision to separate or not to separate. • Talent retention strategies for competitive advantage. Readings: Athey, R. (2004). It’s 2008: Do you know where your talent is? Why acquisition and retention strategies don’t work. USA: Deloitte Development LLC. Berglas, S. (2006, September). How to keep A players productive. Harvard Business Review, 104-112. Brown, A., Duncan, A., Harris, N. & Kelly, S. (2003). Strategic talent retention: Using measurement to keep the best. Strategic HR Review, 2(4), 22-69. Durgin, T. (2007). The Towers Perrin 2007-2008 global workforce study: Insights to drive growth. HCI White Paper. Frank, F.D., Finnegan, R.P., & Taylor, C.R. (2004). The race for talent: Retaining and engaging workers in the 21st century. Human Resource Planning, 27(3), 12-25. Glen, C. (2006). Key skills retention and motivation: the war for talent still rages and retention is the high ground. Industrial and Commercial Training, 38(1), 37-45. Guthridge, M., Komm, A.B., & Lawson, E. (n.d.). Making talent a strategic priority. The McKinsey Quarterly. Hedger, A. (2007, April). Five ways to strengthen your engagement and retention strategies. Workforce management. Retrieved from Heidrick & Struggles (2007, September). Mapping Global Talent: Essays and insights. Economist Intelligence Unit. Johnson, S.A. (2006). Talent segmentation in workforce planning. HCI White Paper. Mossholder, K.W., Settoon, R.P., & Henagan, S.C. (2005). A relational perspective on turnover: examining structural, attitudinal, and behavioral predictors. Academy of Management Journal, 48(4), 607-618. Sprague, C. (2008). The silent generation meets generation Y: How to manage a four generation workforce with panache. HCI White Paper. Tuckder, E., Kao, T., & Verma, N. (n.d.). Next-generation talent management: Insights on how workforce trends are changing the face of talent management. Hewitt Associates.
  4. 4. Waldman, J.D., & Arora, S. (2004). Measuring Retention Rather than Turnover: A Different and Complementary HR Calculus. Human Resource Planning, 27(3), 6-9. Class Structure Class meetings will take various forms and will include lectures, discussions and exercises. All students are expected to contribute to the class discussions. Here quality is definitely more important than quantity. For each session, assigned reading will be provided and all participants are expected to read these as preparation for the class. Class attendance is compulsory (see duly performed requirements below). Performance Assessment The final mark for this course will consist of four marks. A separate document is provided that outline the four assignments in detail. The assignment deadlines are as follows: 16 September: Assignment 1 (10%) 30 September: Assignment 2 (30%) 14 October: Assignment 3 (20%) 28 October: Assignment 4 (40%) Duly Performed Requirements Class Attendance and Permission to be Excused from Class Attendance at all lectures is compulsory. Only the course convenor may grant you permission to be absent from class. Do not approach your lecturer if you want to be excused from class. To obtain permission to be excused from class or get an extension for a hand-in date for an assignment, you must first complete a form, obtainable from the course website. Permission to be absent from class or for an extension of a hand-in date, is granted for medical, compassionate or sports related reasons. Supporting documentation (e.g. a medical certificate) should accompany the form. Plagiarism (theft of intellectual property) Plagiarism is the theft of intellectual property. Plagiarism of any kind will not be tolerated. Any work copied directly (without appropriate referencing) from any book, article, or other student’s work, constitutes plagiarism. The University regards plagiarism as a very serious offence and strict disciplinary action will be taken against offenders. Assignments
  5. 5. Assignments must be submitted by the deadlines indicated above in the labelled boxes opposite Room 4.32 in Leslie Commerce. One copy of an assignment must be submitted and it should have a plagiarism cover sheet attached to it. Your assignments will not be marked if you have not attached the cover sheet, We have to retain original, marked copies of assignments for the external examiner. You will receive a photocopy of your marked assignment, should your assignment be selected for this purpose, Unauthorised late submissions will incur a penalty: -5% for one day late; -10% for two days late; -15% for 3 days late. Unauthorised late submissions of more than 3 days will not be marked. Requests for a remark You have the right to appeal the grade awarded by the marker of your assignments. If you are dissatisfied with your assessment, please do not request a remark from your lecturer. Write a formal letter to the external examiner requesting a remark and submit this letter to the course convener. This request should be based on a clear argument, not simply reflect the idea that you are accustomed to getting higher marks. You should note that when a remark is agreed to, the entire assignment will be remarked. Moreover, a remark may result in a lower mark being given to the work if the external examiner thinks that this is justified. The course convener will submit this letter to the external examiner in June or in November. Writing Centre Your lecturer may attach a document to your assignment indicating that your written work does not meet the standard expected of a postgraduate student. The document will contain directions to the University’s Writing Centre. You should make an appointment with a consultant in the Writing Centre and take your assignment with you. The assignment will contain the lecturer’s remarks pertaining to lack of quality or suggestions for improvements. Even when your first language is English, it does not follow automatically that you can write academic English. Poor writing skills will handicap you and it is imperative that you improve your competence in this area when your lecturer indicates this.