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

Classification terminology - library management, CLASSIFICATION TERMINOLOGY...

CLASSIFICATION TERMINOLOGY: Library classification as an academic discipline is about 125 years old. Its teaching and research has gained momentum comparatively recently. It m

Miscellaneous supplies and equipment , Miscellaneous Supplies and Equipment...

Miscellaneous Supplies and Equipment -libraray equipment-library management Besides the furniture and equipment enumerated above, a number of items useful for library operatio

Objectives of inflibnet, Objectives of INFLIBNET The main objectives I...

Objectives of INFLIBNET The main objectives INFLIENET are as under:  To evolve a national network of libraries and information centres in the country and to improve info

Information and library network, INFLIBNET (Information and Library Network...

INFLIBNET (Information and Library Network)   The University Grants Commission (UGC) in its attempt to establish networking has taken the initiative and decided to develop a ne

Quality assurance plan, Q uality assurance plan The quality assurance ...

Q uality assurance plan The quality assurance plan is to establish the goals, the process and the responsibilities needed to implement the effective quality assurance function

Academic management system, Note that the goal of this assignment is to ass...

Note that the goal of this assignment is to assess your understanding of the core principles of good OO design (e.g. the advantages of using inheritance and polymorphism etc.). As

Classification scheme - technical processing, Classification Scheme: A...

Classification Scheme: A scheme of classification is but a tool in the hands of the library to organise subjects and to serve them out in an efficient way. Therefore, it is ne

Define business ethics, Question 1 i) Discuss managing quality transform...

Question 1 i) Discuss managing quality transformation in organisation ii) Explain the concept of quality in manufacturing & services Question 2 Explain the different step

Selection procedure - library management, Selection Procedure: There c...

Selection Procedure: There can be two sets of operations in the selection of periodicals: those relating to continuing titles, and those relating to new titles. i) Continuing

Quality improvement methodology, Quality I mprovement methodology For ...

Quality I mprovement methodology For   Quality   Improvement,   the   Plan-Do-Check-Act   cycle   approach   is generally  used.  The  PDCA  (Plan-Do-Check-Act)  cycle  also

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