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

Appropriate investment of time, 1. What instructional technology and techni...

1. What instructional technology and techniques does research prove are beneficial? Detrimental? 2. Does moving students from single-gender education to co-ed increase student achi

Objectivity and economy - characteristics of research tool, Objectivity: ...

Objectivity: Objectivity means freedom from bias. A test should yield a clear  score value for each performance, the score being independent of the personal judgment  of the

Persuasion, Persuasion When communication is your goal often is to pers...

Persuasion When communication is your goal often is to persuade the audience to get the message that you are conveying to them. Persuasion is connected to the feasibility of th

Write short notes on pert, Question 1 The PMBOK Guide addresses four eleme...

Question 1 The PMBOK Guide addresses four elements related to scope. List and explain them Question 2 Write short notes on PERT Question 3 Explain the various planning p

How three-tier architecture can be used to implement an erp, QUESTION (...

QUESTION (a) Define the term ‘Business Process Re-engineering (BPR)' and explain the role of BPR in the context of Enterprise Resource Planning (ERP). (b) ‘Firms sometimes u

Objectives of biological treatment, Question 1: (a) What are the four o...

Question 1: (a) What are the four objectives of biological treatment? (b) Describe fully the process microbiology for (i) Anaerobic digestion (ii) Composting of slud

Types of documentation and information centres, TYPES OF DOCUMENTATION AND ...

TYPES OF DOCUMENTATION AND INFORMATION CENTRES  Documentation and information centres are discussed here under three broad groups. They are:  i)  By ownership, i.e., those

Gestalt alphabetisation, Gestalt Alphabetisation   Ranganathan was foll...

Gestalt Alphabetisation   Ranganathan was following the Gestalt Aplhabetisation to a severe degree in the earlier editions of CCC up to the 3rd edition published in 1951. In th

State five objectives that the ppa 2006 aims to achieve, QUESTION The P...

QUESTION The Public Procurement Act 2006 (PPA 2006) is a modern procurement legislation based on UNCITRAL Model Law. PPA 2006 was enacted in 2006 and came into force in 2008. A

Define a code of ethics, QUESTION You are given the task to draft a Co...

QUESTION You are given the task to draft a Code of Ethics for your organization (a) Define a Code of Ethics (b) What are the different aspects/issues that you might incl

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