User Account

All Pages

compensation management, Other Management

Assignment Help:
In 2001, a Chennai- based two- wheeler major introduced a bonus scheme for its employees. Employees
covered under this bonus scheme are evaluated through a three-tier process- (1) meeting production
schedules, 2) maintaining machines, and (3) reducing overtime, scrap and shipping errors. In 2002,
productivity surged, and some employees even added as much as 15 per cent to their paychecks.
The two- wheeler company started facing competition from international players and also was riddled in
patent issues. A court order forced them to stop production of many models, causing significant
manpower restricting successive drop in sales, the company was forced to withdraw the bonus scheme,
and asked employees to be prepared for a financial structure, which would mean a reduction in their
benefits and perks. This message had a highly demoralizing effect on the employees and many efficient
designers and engineers left their jobs to join the competitors. The trade unions also took up the matter as
the workers only faced pay- cut while the senior management remuneration remained unchanged.
A portion of the employee compensation is paid as variable pay, of which bonus is a major part. Other
variable incentives are based on allocated weight age on group target achievement. To rationalize the
compensation cost, the company decided to further switch over to individual performance track record. A
formal announcement to this effect made the workers furious and led to workers protest, resulting in
production loss an a regular basis. The company made it clear to the employees that their behavior would
lead to the closure of the company, which would put them in financial and went on an indefinite strike.
A few months later, the company obtained clearance from the court and the production of all the premium
high- selling brands, which was stopped earlier, could be resumed, as the patent issue was found to be
untenable. The company feels that the whole issue was masterminded by competitors to poach valuable
employees from the company.
Question:
1. Study the case and provide an alternative compensation design, which would redress the problem
faced by the two- wheeler major in Chennai.

Related Discussions:- compensation management

Resource sharing library network, Resource Sharing Library Network Res...

Resource Sharing Library Network Resource sharing is the focal point of library networking and cooperation. The tested technological advances in this field have tremendously i

Special furniture items-library furniture-library management, Special Furni...

Special Furniture Items-library furniture-library management Besides the above mentioned library furniture, a few other items worth considering are:  Book trolley, whi

Disadvantages of contracting , Disadvantages of contracting  As we saw ...

Disadvantages of contracting  As we saw some of the factors that drive a contracting decision, now let us understand the disadvantages or criticisms associated with contracting

Planning for negotiations , Planning for negotiations  A complex negoti...

Planning for negotiations  A complex negotiation requires specific planning to be successful. Without planning, a negotiator cannot possibly have the information required to ef

Organisation behaviour, what would you suggest to avoid delays in dispatch ...

what would you suggest to avoid delays in dispatch of products

Explain the term safe system of work, QUESTION 1 Describe the powers th...

QUESTION 1 Describe the powers the Permanent Secretary may exercise for the purpose of enforcing the Occupational safety and Health Act, 2005. QUESTION 2 (a) Explain th

Rung process, RUNG PROCESS   In a library we classify and catalogue a b...

RUNG PROCESS   In a library we classify and catalogue a book after it is acquired and entered in the Accession Register. After cataloguing the book, the entries will be filed i

Improve distance learning programmes, Question: "Web-based training is ...

Question: "Web-based training is part of the biggest change in the way our species conducts training since the invention of the chalkboard or perhaps the alphabet. The developm

Demerits of dictionary catalogue, Demerits of dictionary catalogue: Th...

Demerits of dictionary catalogue: The alphabetical arrangement of entries in one sequence is at once the strength and weakness of a dictionary catalogue. The subject entries g

Objectives of conference centre, Question 1: You have been hired as a c...

Question 1: You have been hired as a consultant for an event venue, and your task consist of advising the management on the requirements of the conference area which they plan

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd