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

Compare and contrast the fundamental and technical analysis, Question 1 ...

Question 1 Explain the characteristics of investment. Differentiate between investment and speculation. Question 2 What do you understand risk and measurement of ris

Definition of resource sharing, Definition   Allen Kent provides a desc...

Definition   Allen Kent provides a description of some of the concepts associated with the resource sharing activity in the following terms:   Resource sharing in libraries is

Production and operation management., detailed notes on abc analysis

detailed notes on abc analysis

Cumulative index work and loose issue shelving work, Cumulative Index Work:...

Cumulative Index Work: As the name suggests, it pertains to noting by entering down the announcement of cumulative index followed by entering  the receipt of cumulative index

Library building-library management, LIBRARY BUILDING Libraries come i...

LIBRARY BUILDING Libraries come in various types and  sizes  to fulfill certain specific needs of the community it is established to serve. Thus we  can have a single room vil

Grunig-hunts public relations model, Problem 1 Strong employee relation...

Problem 1 Strong employee relations equals solid organizations. Companies that interact effectively with workers financially outperform those that don't. Identify and descri

Agreement - requirements of resource sharing library network, Agreements ...

Agreements The first agreement, obviously is the agreement to share currently owned materials (that is, to permit access to the holdings among partners), with protocols, limit

Explain the six basic stages of tqm, Question 1 Write short notes on the Q...

Question 1 Write short notes on the Quality planning an element of Quality management Question 2 What are the steps to the Fade QI model? Question 3 Quality costs are th

Hrd in. indian libraries and information centres , HRD IN. INDIAN LIBRARIES...

HRD IN. INDIAN LIBRARIES AND INFORMATION CENTRES HRD as discussed in this Unit may seem to be somewhat irrelevant to the conditions prevailing in Indian libraries and informa

Pestel analysis of the macro-environment, QUESTION 1 Explain each of th...

QUESTION 1 Explain each of the following concepts- (a) PESTEL analysis of the macro-environment (b) Porter's five forces (c) Value chain analysis QUESTION 2 Th

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