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

Discuss why systems are vulnerable, Question 1 Explain the role of informa...

Question 1 Explain the role of information in decision making Question 2 Explain how businesses can gain competitive advantage from managing information Question 3 Expla

Creating values for cop, C reating multiple types of value The organis...

C reating multiple types of value The organisations which have taken the steps to cultivate CoP have found that the communities are exceptional among the organisational struct

Nature of entries to be filed, Nature of Entries to be Filed   We have ...

Nature of Entries to be Filed   We have noted that catalogue entries are either word entries or notational entries. In a dictionary catalogue they are word entries. In a classi

Issues of periodicals and non-book material arrangement, Issues of Periodic...

Issues of Periodicals and Non-Book Material-Storing, Shelving and Arrangement: Most libraries have periodical collections, the current issues having to be display for browsing

Measures of central Tendency, What are the importance of Measures of Centra...

What are the importance of Measures of Central Tendency to A Human Resource Manager?

Relation to facilities planning and design, Question 1: (i) What are t...

Question 1: (i) What are the determinant scarce resources a facilities planner and designer needs to consider before starting a proper feasibility study for the initial se

Classifications of magazines as a medium of communication, Problem 1 Ra...

Problem 1 Radio, as a medium of communication, functions in two main ways: it serves the individuals; and it operates on behalf of the society (Leish, 2007). Using suitable exa

Sewing materials - binding materials, Sewing Materials - binding materials:...

Sewing Materials - binding materials: Thread: Sewing is the central operation in binding. The life of binding depends very much on the kind of sewing and the material used f

Card catalogue cabinet -library furniture-library management, Card Catalogu...

Card Catalogue Cabinet -library furniture-library management This is perhaps the most important piece of equipment in a library used frequently by both the library staff and t

Government activities - information generation process, Government Activiti...

Government Activities  Information is also generated as a by-product from the activities undertaken by different governmental and non-governmental organisations. The most impo

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