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

Organizational Behaviour, If you were one of the other foreman, what could ...

If you were one of the other foreman, what could you do to make Rajinder''s transition easier.

Prepare an asset for the company, Branding started because companies wanted...

Branding started because companies wanted their services and products to be distinguishable from the generic dross of others and prepare an asset for the company. This is still the

Library networks in usa and uk, Library Networks in USA and UK   The Un...

Library Networks in USA and UK   The United States has definitely taken a lead in library networking. Among the prominent agencies in this regard, are the Library of Congress,

Social structures as a management tool, S ocial structures as a management...

S ocial structures as a management tool An understanding of the type of social structure which can take the responsibility of nurturing the learning, developing the competenci

Identification of potential risks, Question 1: Using as example an even...

Question 1: Using as example an event or conference and venue of your choice, explain how you would staff this event at this particular venue. Your answer should justify your c

How is strategy to be implemented, QUESTION 1- What is strategy impleme...

QUESTION 1- What is strategy implementation and what problems may arise in implementing a strategic change? 2- Who implements strategy in the organisation and how can the be

Binding policy for libraries - library management, Binding Policy for Libra...

Binding Policy for Libraries Most libraries acquire various kinds of materials which need differential handling and care. The question is: what is an adequate programme of co

Experimental research, EXPERIMENTAL RESEARCH: One of  the other method...

EXPERIMENTAL RESEARCH: One of  the other method used  in  research  is Experimental Research.  Meaning and Characteristics  Experimental research is concerned with  ca

Importance of the rooms divisions department, Question 1: With the help...

Question 1: With the help of a departmental organization chart explain in detail the functions and importance of the Rooms Divisions Department and its relationship with the o

Caselet, whom do you think rajender will eat with? Why?

whom do you think rajender will eat with? Why?

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