BBA 405 Compensation Management Notes are a 63-page unit-wise book for the GGSIPU BBA (Hons.) Semester 7 Human Resource Management elective, mapped to the NEP scheme for the batch admitted 2024-25 onwards. They cover all 4 units with 69 exam questions, 22 worked illustrations and 16 practice numericals with answers, and come as a printed book.
Written and reviewed by Sheetal Kirola, Academic Head, BBA and B.Ed (University of Delhi, SOL) · Checked against the BBA Scheme and Syllabus (NEP based, revised, w.e.f. 2024-25) · Updated 22 October 2026 · Editorial policy
Scheme: BBA NEP based revised scheme 2024-25 | Applies to: batch admitted 2024-25 onwards | Verified against: BBAwef2024_25_200125.pdf on ipu.ac.in, checked 22 October 2026
BBA 405 Compensation Management at a glance: GGSIPU BBA Sem 7 credits, units and exam pattern
BBA 405 is one of three HRM electives in the Honours year; students pick three Semester 7 electives (two major, one minor). These GGSIPU BBA Sem 7 Compensation Management notes follow the official unit order.
| Code and title | BBA 405: Compensation Management |
|---|---|
| Course and semester | BBA (Hons.), Semester 7 |
| Category | Elective, Human Resource Management specialisation (major or minor) |
| Credits and hours | 4 credits · L-4, T-0 · 15 hours per unit |
| Marks | 100: 40 internal + 60 end-term |
| Internal 40 split | Class test 15 + at least two activities (assignment, presentation, viva, GD, participation) 25 |
| Applies to | Batch admitted 2024-25 onwards |
| End-term pattern | Not printed in the official PDF |
| Units | 4 |
| Paired lab | None |
The core papers BBA 401 Project Management and BBA 403 Fundamentals of Actuarial Sciences sit beside it on GGSIPU BBA Semester 7 papers.
BBA 405 Compensation Management Notes unit-wise: 22 worked illustrations and 69 exam questions across 4 units
The book runs 63 pages: a cover, two contents pages and 60 pages of unit notes. These are Compensation Management notes in English, written in short points and tables. Each unit ends with exam questions, practice problems with answers and a Quick Revision box. Notes for every other BBA paper sit on GGSIPU BBA notes.
BBA 405 Unit 1: Dynamics of Compensation Structure
Pages 4 to 14. Compensation versus wage, salary, perks and total rewards; objectives and benefits; external and internal pay factors; lead, match or lag policy; and the direct, indirect and non-financial parts of a package.
It closes with Milkovich and Newman's strategic pay decisions and red-circle and green-circle rates. 6 sections, 2 illustrations, 3 practice problems, 16 exam questions.
Quick look: turning a grade mid-point into a pay range (from page 6)
| Step | Working | Result |
|---|---|---|
| Given | Mid-point ₹60,000, spread 50% | - |
| Minimum | 60,000 ÷ 1.25 | ₹48,000 |
| Maximum | 48,000 × 1.50 | ₹72,000 |
| Check | (72,000 − 48,000) ÷ 48,000 | 50% |
Quick look: pay range for Grade 4 with a 50% range spread (from page 6)
- Step
- Given
- Working
- Mid-point ₹60,000, spread 50%
- Result
- -
- Step
- Minimum
- Working
- 60,000 ÷ 1.25
- Result
- ₹48,000
- Step
- Maximum
- Working
- 48,000 × 1.50
- Result
- ₹72,000
- Step
- Check
- Working
- (72,000 − 48,000) ÷ 48,000
- Result
- 50%
BBA 405 Unit 2: Current Trends in Designing the Compensation Structure
Pages 15 to 31. Job evaluation by ranking (with paired comparison), grading, factor comparison and point rating, plus the Hay guide chart; internal versus external alignment; market competitiveness; Vroom's expectancy and Adams' equity theories applied to pay.
Then CTC to take-home salary, fringe benefits, ESOP vesting and tax, Section 197 pay limits and the Nomination and Remuneration Committee. 10 sections, 7 illustrations, 4 practice problems, 18 exam questions.
Quick look: pricing two jobs with the point rating method (from page 19)
| Job | Skill + Effort + Responsibility + Conditions | Points | Monthly pay |
|---|---|---|---|
| Senior Clerk | 120 + 40 + 50 + 15 | 225 | ₹27,000 |
| Machine Operator | 80 + 60 + 50 + 45 | 235 | ₹28,200 |
Quick look: point rating at ₹120 per point (from page 19)
- Job
- Senior Clerk
- Skill + Effort + Responsibility + Conditions
- 120 + 40 + 50 + 15
- Points
- 225
- Monthly pay
- ₹27,000
- Job
- Machine Operator
- Skill + Effort + Responsibility + Conditions
- 80 + 60 + 50 + 45
- Points
- 235
- Monthly pay
- ₹28,200
BBA 405 Unit 3: Regulatory Framework for Compensation Structure
Pages 32 to 46. The Code on Wages, 2019: the four Acts it replaced, the 50% rule in the definition of wages, coverage and the Section 3 ban on gender discrimination; minimum, fair, living and floor wages and how they are fixed and revised.
After payment of wages (see the excerpt): bonus, Section 54 penalties, sales pay plans, executive packages and pay fairness. 9 sections, 5 illustrations, 4 practice problems, 18 exam questions.
Quick look: set-on and set-off over three years (from page 39)
| Year | Allocable surplus | Bonus paid | Carried forward |
|---|---|---|---|
| 1 | ₹6,00,000 | ₹4,00,000 (20% cap) | Set-on ₹2,00,000 |
| 2 | ₹1,00,000 | ₹1,66,600 (minimum) | Set-on ₹1,33,400 |
| 3 | Nil | ₹1,66,600 | Set-off ₹33,200 |
Quick look: bonus on eligible wages of ₹20,00,000 a year (from page 39)
- Year
- 1
- Allocable surplus
- ₹6,00,000
- Bonus paid
- ₹4,00,000 (20% cap)
- Carried forward
- Set-on ₹2,00,000
- Year
- 2
- Allocable surplus
- ₹1,00,000
- Bonus paid
- ₹1,66,600 (minimum)
- Carried forward
- Set-on ₹1,33,400
- Year
- 3
- Allocable surplus
- Nil
- Bonus paid
- ₹1,66,600
- Carried forward
- Set-off ₹33,200
BBA 405 Unit 4: Grievances Redressal Relating to Conflicts Between Employers and Employees
Pages 47 to 63. Pay grievances, the step-ladder procedure and the Grievance Redressal Committee under the Industrial Relations Code, 2020; the Employees' Compensation formula and the 2017 amendments; wage determination, pay grades and broad-banding.
Then wage surveys, a regression pay line, comparable worth, competency pay, Halsey, Rowan, Taylor and Merrick plans and variable pay. 10 sections, 8 illustrations, 5 practice numericals, 17 exam questions.
Quick look: time rate, Halsey and Rowan on the same job (from page 60)
| Plan | Working | Earnings |
|---|---|---|
| Time rate | 8 × 100 | ₹800 |
| Halsey (50%) | 800 + 50% × 2 × 100 | ₹900 |
| Rowan | 800 + (2 ÷ 10) × 8 × 100 | ₹960 |
Quick look: 10 hours allowed, 8 taken, ₹100 per hour (from page 60)
- Plan
- Time rate
- Working
- 8 × 100
- Earnings
- ₹800
- Plan
- Halsey (50%)
- Working
- 800 + 50% × 2 × 100
- Earnings
- ₹900
- Plan
- Rowan
- Working
- 800 + (2 ÷ 10) × 8 × 100
- Earnings
- ₹960
Wage payment deadlines and authorised deductions under the Code on Wages: excerpt from page 37 of the BBA 405 notes
Excerpt from page 37
Timely disbursement (Section 17)
The Code on Wages, 2019 does not leave the pay date to the employer's convenience. Once the employer fixes a wage period, the law fixes the last date by which wages must reach the employee. No wage period can be longer than one month.
| Wage period | Wages to be paid |
|---|---|
| Daily | At the end of the shift |
| Weekly | On the last working day of the week, before the weekly holiday |
| Fortnightly | Before the end of the second day after the fortnight ends |
| Monthly | Before the seventh day of the following month expires |
| Removal, dismissal, retrenchment, resignation or closure | Within two working days |
When wages must be paid under Section 17 (excerpt, page 37)
- Wage period
- Daily
- Wages to be paid
- At the end of the shift
- Wage period
- Weekly
- Wages to be paid
- On the last working day of the week, before the weekly holiday
- Wage period
- Fortnightly
- Wages to be paid
- Before the end of the second day after the fortnight ends
- Wage period
- Monthly
- Wages to be paid
- Before the seventh day of the following month expires
- Wage period
- Removal, dismissal, retrenchment, resignation or closure
- Wages to be paid
- Within two working days
The last row matters in exams. An employee who resigns does not wait for the next monthly cycle; the full and final wages are due within two working days.
Authorised deductions (Section 18)
An employer may cut wages only for the reasons the Code allows. Any other deduction is illegal. The permitted heads are:
- Fines: only for acts or omissions notified in advance, after hearing the employee, and never on a person below 15 years.
- Absence from duty: in proportion to the time absent.
- Damage or loss: of goods or money entrusted to the employee, caused by neglect or default.
- House accommodation and amenities: supplied by the employer and accepted by the employee.
- Advances and loans: recovery with interest, and adjustment of any overpayment.
- Tax and statutory dues: TDS, professional tax, PF, ESI and other social security contributions.
- Court orders, and payments to co-operative societies, LIC or approved savings schemes with written consent.
- Others: notified relief funds (with consent) and trade union subscription.
Limits on deductions
Total deductions in one wage period cannot exceed 50% of the wages; anything above that is recovered in later periods. Fines cannot exceed 3% of the wages for the period, must be recovered within 90 days and must go into a fund used for employee welfare.
How to write BBA 405 answers: definition-led theory answers, wage-law limits and worked pay numericals
Theory answers open with a definition. Each unit has a "Standard Definitions (Write in Exam)" box, such as Milkovich and Newman on compensation or Dale Yoder on grievance. Quote one, name the author, then add features or steps.
Law answers in Units 3 and 4 score on precision, so pair the section with its number: wages by the seventh day (Section 17), fines up to 3% (Section 18), bonus from 8.33% to 20% (Section 26), managerial pay up to 11% of net profits (Section 197).
For "distinguish between" questions, reuse the notes' comparison tables, such as time rate versus piece rate.
Numericals follow four lines. The gender pay gap example on page 57:
- Formula: Gap = (M − F) ÷ M × 100
- Substitution: (50,000 − 41,000) ÷ 50,000 × 100
- Result: 18%
- Meaning: women earn 82 paise for every rupee men earn.
If you are using the BBA 405 Compensation Management IPU notes in the last week, revise each unit's Quick Revision box first; it holds every formula and section number. Practise this format on GGSIPU BBA important questions.
BBA 405 exam corner: 42 two-to-five-mark and 27 ten-to-fifteen-mark questions by unit
| Unit | Short (2-5 Marks) | Long (10-15 Marks) | Practice problems | Illustrations |
|---|---|---|---|---|
| Unit 1 | 10 | 6 | 3 | 2 |
| Unit 2 | 11 | 7 | 4 | 7 |
| Unit 3 | 11 | 7 | 4 | 5 |
| Unit 4 | 10 | 7 | 5 | 8 |
| Total | 42 | 27 | 16 | 22 |
BBA 405 exam questions, practice problems and illustrations in the notes
- Unit
- Unit 1
- Short (2-5 Marks)
- 10
- Long (10-15 Marks)
- 6
- Practice problems
- 3
- Illustrations
- 2
- Unit
- Unit 2
- Short (2-5 Marks)
- 11
- Long (10-15 Marks)
- 7
- Practice problems
- 4
- Illustrations
- 7
- Unit
- Unit 3
- Short (2-5 Marks)
- 11
- Long (10-15 Marks)
- 7
- Practice problems
- 4
- Illustrations
- 5
- Unit
- Unit 4
- Short (2-5 Marks)
- 10
- Long (10-15 Marks)
- 7
- Practice problems
- 5
- Illustrations
- 8
- Unit
- Total
- Short (2-5 Marks)
- 42
- Long (10-15 Marks)
- 27
- Practice problems
- 16
- Illustrations
- 22
Four exam-style questions with answer pointers:
- Unit 1: What are red-circle and green-circle rates? Red-circle: pay above the grade maximum, frozen. Green-circle: pay below the minimum, raised (page 13).
- Unit 2: How many paired comparisons for 6 jobs? n(n − 1) ÷ 2 = 15 (page 17).
- Unit 3: Minimum and maximum bonus? 8.33% of wages or ₹100, whichever is higher, even without profit; maximum 20%; paid within 8 months (page 38).
- Unit 4: Equal pay for equal work versus comparable worth? The first compares people in the same job; the second compares different jobs of equal value, such as a nurse and an electrician (page 56).
The BBA 405 notes list 42 two-to-five-mark and 27 ten-to-fifteen-mark exam questions across 4 units, plus 22 worked illustrations and 16 practice numericals with answers.
More practice sits in the BBA 405 important questions.
BBA 405 and the GGSIPU BBA Sem 7 papers it connects to
BBA 405 has no lab; every Semester 7 elective by specialisation is listed in the GGSIPU BBA syllabus.
- BBA 409 Human Resource Metrics and Analytics: Unit 4's survey percentiles, regression pay line and merit matrix are pay analytics in practice.
- BBA 407 Counseling Skills for Managers: the grievance-handling steps in Unit 4 are counselling situations.
It builds on BBA 106 Human Resource Management (Semester 2), which introduced incentive plans, fringe benefits and ESOPs.
Who writes and checks the BBA 405 Compensation Management notes?
- Sheetal Kirola, writer and subject reviewer · Academic Head, Unnati Educations · BBA and B.Ed, University of Delhi (School of Open Learning) · specialises in BBA and B.Ed subjects · 6 years of experience · author profile
The 2026-27 edition is mapped to the revised NEP BBA scheme (batch 2024-25 onwards) and follows the Code on Wages, 2019 and the Industrial Relations Code, 2020. Last updated 22 October 2026. See our editorial policy.
The same team prepares GGSIPU important questions for every course, with the same unit checks used for this pay paper.
Do the BBA 405 notes cover the full GGSIPU syllabus?
Yes. Every official topic in all four units has its own section, and the unit titles match the official PDF.
| Official unit | Official topics | Where in the notes | Status |
|---|---|---|---|
| Unit I | Concept of compensation structure, objectives and benefits, factors affecting compensation decisions, components of compensation package, scope and importance, basic issues in designing compensation strategy | Sections 1-6, pages 5-13 | Covered |
| Unit II | Job evaluation and methods, internal and external alignment, market competitiveness, expectancy and equity theories, CTC, fringe benefits, ESOP, executive remuneration, compensation committee and corporate governance | Sections 1-10, pages 16-29 | Covered |
| Unit III | Code on Wages, 2019 provisions and coverage, minimum wages, payment of wages, bonus with set-on and set-off, compliance and penalties, rewarding sales personnel, executive compensation, pay fairness, legal constraints on pay | Sections 1-9, pages 33-44 | Covered |
| Unit IV | Grievance redressal, Employees' Compensation (Amendment) Act, 2017, wage determination, pay grades, wage surveys, data for decisions, comparable worth and gender pay gap, competency-based pay, time and piece-rate wages, variable pay | Sections 1-10, pages 48-62 | Covered |
BBA 405 official syllabus mapped to the notes
- Official unit
- Unit I
- Official topics
- Concept of compensation structure, objectives and benefits, factors affecting compensation decisions, components of compensation package, scope and importance, basic issues in designing compensation strategy
- Where in the notes
- Sections 1-6, pages 5-13
- Status
- Covered
- Official unit
- Unit II
- Official topics
- Job evaluation and methods, internal and external alignment, market competitiveness, expectancy and equity theories, CTC, fringe benefits, ESOP, executive remuneration, compensation committee and corporate governance
- Where in the notes
- Sections 1-10, pages 16-29
- Status
- Covered
- Official unit
- Unit III
- Official topics
- Code on Wages, 2019 provisions and coverage, minimum wages, payment of wages, bonus with set-on and set-off, compliance and penalties, rewarding sales personnel, executive compensation, pay fairness, legal constraints on pay
- Where in the notes
- Sections 1-9, pages 33-44
- Status
- Covered
- Official unit
- Unit IV
- Official topics
- Grievance redressal, Employees' Compensation (Amendment) Act, 2017, wage determination, pay grades, wage surveys, data for decisions, comparable worth and gender pay gap, competency-based pay, time and piece-rate wages, variable pay
- Where in the notes
- Sections 1-10, pages 48-62
- Status
- Covered
Verify it yourself: BBA Scheme and Syllabus, NEP based, revised w.e.f. 2024-25 (official PDF). BBA 405 is on printed pages 164 and 165.
Every course in GGSIPU notes is mapped to its official PDF this way, topic by topic.
BBA 405 Compensation Management notes FAQs
How do I get the full BBA 405 notes?
Tap "Get Full Notes" or the WhatsApp button at the end of this page and send the pre-filled message. The full BBA 405 notes come only as a printed book of 63 pages covering all four units; they are not sold as a PDF. Delivery takes a maximum of 5 to 7 days, depending on your location. Our team confirms the order details on WhatsApp.
Is BBA 405 compulsory for every BBA Semester 7 student?
No. BBA 405 is an elective in the Human Resource Management specialisation of the fourth (Honours) year. In Semester 7 you choose three electives, two from your major and one from your minor, alongside the core papers. BBA 407 and BBA 409 are the other HRM options. Colleges offer electives at their discretion, so confirm that your institute runs BBA 405.
What is the passing mark for BBA 405?
BBA 405 is marked out of 100: 40 internal and 60 end-term. The BBA scheme and syllabus PDF (w.e.f. 2024-25) does not print a pass percentage for the paper. Minimum marks, end-term rules and re-appear conditions are set by Ordinance 11 on ipu.ac.in, so check the current version there or with your college examination cell.
How are the 40 internal marks of BBA 405 split?
The BBA scheme gives every theory paper, including BBA 405, 40 internal marks: 15 for a compulsory written class test held as per the academic calendar, and 25 for at least two activities such as assignments, presentations, viva-voce, group discussion or class participation. The exam questions and practice numericals in the notes help with both the class test and assignments.
Which BBA 405 unit has the most numericals?
Unit 4, with 8 worked illustrations and 5 practice numericals: Employees' Compensation for death and disablement, point grades, survey percentiles, the regression pay policy line, the merit matrix, the gender pay gap, Halsey and Rowan, and Taylor and Merrick piece rates. Unit 2 comes next with 7 illustrations on job evaluation, expectancy, equity, CTC and ESOP.
Do the BBA 405 notes use the Code on Wages, 2019 or the old wage Acts?
They follow the Code on Wages, 2019, which the BBA 405 syllabus names. Unit 3 shows how the Code replaced the Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act and Equal Remuneration Act. Where the Code relies on government-notified figures, such as the bonus eligibility limit, the notes quote the old Bonus Act figure and say so clearly.
Get the full BBA 405 Compensation Management Notes on WhatsApp
The full BBA 405 book is printed and posted to you; it is not available as a PDF.
| Unit | Pages | Exam questions | Illustrations + practice |
|---|---|---|---|
| Unit 1 | 11 (4-14) | 16 | 2 + 3 |
| Unit 2 | 17 (15-31) | 18 | 7 + 4 |
| Unit 3 | 15 (32-46) | 18 | 5 + 4 |
| Unit 4 | 17 (47-63) | 17 | 8 + 5 |
What is inside the full BBA 405 printed notes
- Unit
- Unit 1
- Pages
- 11 (4-14)
- Exam questions
- 16
- Illustrations + practice
- 2 + 3
- Unit
- Unit 2
- Pages
- 17 (15-31)
- Exam questions
- 18
- Illustrations + practice
- 7 + 4
- Unit
- Unit 3
- Pages
- 15 (32-46)
- Exam questions
- 18
- Illustrations + practice
- 5 + 4
- Unit
- Unit 4
- Pages
- 17 (47-63)
- Exam questions
- 17
- Illustrations + practice
- 8 + 5
- Format: printed book, 63 pages, English, Quick Revision box in every unit.
- Delivery: maximum 5 to 7 days, depending on your location.
Order the BBA 405 printed notes book on WhatsApp (4 units, 63 pages)
Unnati Educations is an independent education provider based in Vikaspuri, Delhi. We are not affiliated with, authorised by, or endorsed by Guru Gobind Singh Indraprastha University (GGSIPU). 'GGSIPU' and 'IPU' are used only to describe the syllabus our notes follow. For official information, visit ipu.ac.in.
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