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

How an offer differ from an invitation to treat, Your Responsible Officer h...

Your Responsible Officer has heard that materials will often be bought more cheaply at auction or tender than from wholesalers. He has also heard much about invitation to treat and

Enumerate the principles of organization, Question 1 Enumerate the prin...

Question 1 Enumerate the principles of organization 2 What is decision making? Explain the steps involved in decision making 3 Explain briefly the classification of ward accomm

Administration of interview schedule, Administration of Interview Schedule:...

Administration of Interview Schedule: Rules for  Interviewing  Fix-up the Appointment:  Interviewer should  fix up  the data and time  of interview with  the  subjecthn

What does the term organisational culture mean, Question 1: (a) Discuss...

Question 1: (a) Discuss, with the use of examples, the situations when, and the reasons why, people accept change. (b) How can employees' attitude toward change be classifie

Staff activity area of library building -library management, Staff Activity...

Staff Activity Area of library building -library management Main activities carried out by the professional staff of the library are: Acquisition, Technical Processing (catalo

Describe and illustrate the term non ionizing radiation, Question 1: ...

Question 1: (a) Describe and illustrate the term ‘non ionizing radiation'. (b) In what ways will noise affect workers? (c) How will the effects of noise, as a hazard,

Has fca be efficient in addressing privatization questions, Q. Has FCA be e...

Q. Has FCA be efficient in addressing privatization questions? Ans. Yes. Greensboro, North Carolina, faced this issue, and FCA was instrumental in trade with it. When the

Purpose of the integrated management project, The Integrated Management Pro...

The Integrated Management Project is designed to: develop your capability to think and act strategically test your ability to apply the concepts taught and techniques le

Explain critical ethical issues facing knowledge management, QUESTION (...

QUESTION (a) What are some of the major types of Knowledge Management roles that exist in organizations today? (b) What types of competencies should be present in a good Kno

Explain why it is necessary to introduce the dummy activity, Question: ...

Question: The following diagram shows a C.P.A.-network modeling the stages in the construction project. Each arc is labeled with the letter denoting the activity it represents

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