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

The principles of job design, QUESTION 1 Business policy aims to meet t...

QUESTION 1 Business policy aims to meet the organisation objectives by maintaining or increasing market share and diversifying or with meeting any financial, political or statu

Define experimental method, QUESTION 1 Write short notes on the followi...

QUESTION 1 Write short notes on the following (a) Observation method (b) Pavlov's classical conditioning (c) Experimental method (d) Reinforcement QUESTION 2

Organizational behavior, what type of errors would you be prone to make whi...

what type of errors would you be prone to make while making these judgement towards goofing employees?

Change owner, T he change owner The change owner is the person assigne...

T he change owner The change owner is the person assigned to essentially arrange and then make the approved changes to the system. The change owner is consulted about the foll

Library catalogue and the five laws of library science , LIBRARY CATALOGUE ...

LIBRARY CATALOGUE AND THE FIVE LAWS OF LIBRARY SCIENCE The Five Laws. of Library Science are a set of basic guiding principles for designing and operating a library or a libr

Differentiate between planned change and unplanned change, Question: Fo...

Question: Forces for change exist in the external and the internal environments of the organisation. (a) Differentiate between planned change and unplanned change. (b)

Evaluate cabinet government under the mauritian system, QUESTION 1 Desc...

QUESTION 1 Describe and evaluate Cabinet Government under the mauritian system QUESTION 2 Explain and assess the Prime Minister's prerogative over the dissolution of Pa

Case study: royal blue, Case Study Royal Blue the national passenger ...

Case Study Royal Blue the national passenger carrier for commercial flight, appointed a new advertising company, Amadeus. Amadeus was hired to spearhead a more customer orien

Field sources - source of data, Field Sources: Include living persons ...

Field Sources: Include living persons who have the knowledge about or have been  in  intimate contact with  social conditions and changes over a considerable time. These Peopl

Organizational Behaviour, Case let 1 M/s. ABC Ltd is a medium-sized enginee...

Case let 1 M/s. ABC Ltd is a medium-sized engineering company producing a large-range of product lines according to customer requirements. It has earned a good reputation as a quic

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