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

What are the four basic change management strategies, Question : (a) Wh...

Question : (a) What are the skills required from change agents in order to manage the different kinds of change effectively? (b) What are the four basic change management st

Use vogel''s approximation method to obtain an solution, Question (a) A...

Question (a) A plastics manufacturer has 1200 boxes of transparent wrap in stock at one factory and another 1000 boxes at its second factory. The manufacturer has orders for th

Explain the functions of the management, Question 1 How is a cable televis...

Question 1 How is a cable television system organized? Explain Question 2 Discuss the ethical issues in media management Question 3 What are the major design steps of a

Purposes of research, Purposes: Description, exploration and explanat...

Purposes: Description, exploration and explanation are three main purposes of survey approach. a) Description: Surveys are frequently conducted for the purposes of ma

reference section-staff activity area of library building, Reference Secti...

Reference Section-Staff Activity Area of library building in library management Reference activity is one of the most important activities of a library and very often it is th

Components of hrd, COMPONENTS OF HRD Organisations should facilitate H...

COMPONENTS OF HRD Organisations should facilitate Human Resources Development by allocating adequate resources to exemplify the HRD philosophy that valuing human beings consci

Features for the best physical form of library catalogue, FEATURES FOR THE ...

FEATURES FOR THE BEST PHYSICAL FORM OF LIBRARY CATALOGUE: Despite the widespread use of the computer for cataloguing, a great many catalogues in the conventional format, such

Car management system, Car Management System: You have been approached...

Car Management System: You have been approached by a Used Car Dealership who wishes to introduce an IT system to support their business. You are required to implement a protot

Please value the company with a dcf analysis, LogicSoft Inc., a start-up th...

LogicSoft Inc., a start-up that provides enterprise logistic software to transportation companies, is in negotiations with a new customer for a sales contract.  The software is hig

Elements of an effective ergonomic program, Question: (a) What, accord...

Question: (a) What, according to you, are the essential elements of an effective ergonomic program? State the reasons for establishing such a program at a place of work. (b

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