This course is taught in the first semester. Students are expected to take it concurrently with the other courses in the semester.

By the end of the course, students will be able to: - Describe the various purposes of performance management and identify the components of an effective performance management program; - Explain the key challenges involved in implementing an effective performance management system; - Describe the role of compensation and outline different approaches managers can take in designing compensation systems; - Identify and explain the key components of an effective compensation system; - Explain the underlying rationale for how incentive plans motivate employees; - Compare and contrast the advantages and disadvantages of different types of incentive plans, also from an ethical perspective.

Employee performance is strongly influenced by their attitudes and behaviors in the workplace. Motivating employees to consistently improve their performance is essential, and it is a fundamental HR task that practitioners must fully understand. Key mechanisms for guiding and enhancing employees' efforts include: - Performance management programs - Base salary - Incentives - Benefits This course is designed to provide students with a comprehensive understanding of these HR mechanisms. Additionally, it addresses the common challenges organizations face when implementing these systems and explores effective strategies for overcoming these challenges.

The course will be based on case studies, readings and some presentations. The debate and the exchange of ideas and experiences will be pivotal for the development of the course. Students will be encouraged to bring their insights and thoughts on the material assigned into class discussions. As in many other HR areas, most issues, cases and problems will not have "one right answer", though some answers will be more valid than others. Thus, being "right" or "wrong" should not be a concern for students when participating to class discussions. All viewpoints will be of interest. Everyone is expected to critically listen to the contributions of fellow students and any disagreement should be explained. Each student is expected to: - Be prepared for each class session, implying that assigned readings, exercises and case studies will have to be completed as required; - Be a committed and loyal contributor to the team work; - Participate politely in class discussions and activities; - Attend all classes; - Be on time. In this course, students should not use artificial intelligence tools to carry out the work or exercises proposed by the faculty. In the event that the use of AI by the student gives rise to academic fraud by falsifying the results of an exam or work required to accredit academic performance, the Regulation of the University Carlos III of Madrid of partial development of the Law 3/2022, of February 24th, of University Coexistence, will be applied.