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

Employee involvement, QUESTION 1 E. Deming who was a quality guru state...

QUESTION 1 E. Deming who was a quality guru stated that management need to adopt the 14 points philosophy. You are required to identify and explain these 14 points QUESTION

Problems in ordering, Problems in Ordering, Procurement and Receipt: O...

Problems in Ordering, Procurement and Receipt: Ordering and procurement of periodicals are very much inconvenienced due to different locations of their publishers. If the  lib

Translation service, Translation Service:   One of the constraints in t...

Translation Service:   One of the constraints in the flow of information is the language barrier. About half of world's literature is published in languages other than English

Binding materials - library management, BINDING MATERIALS: The quality...

BINDING MATERIALS: The quality of binding depends on the type of materials. As a working librarian or a prospective librarian you would need to be conversant with the types an

International marketing, define international marketing and furnish its fea...

define international marketing and furnish its features

Food & beverage control cycle, explain the food & beverages control cycle i...

explain the food & beverages control cycle in details

Ascertaining demand - library management, Ascertaining Demand: The met...

Ascertaining Demand: The methodology to be followed in ascertaining users' needs have been discussed in detail, in Unit 5 under Sec 5.2 Users' Studies of this Block 2. In addi

Purchase order/contract, Purchase Order/Contract  A purchase order/cont...

Purchase Order/Contract  A purchase order/contract is issued to the supplier/contractor. The offer once accepted by the supplier/contractor becomes a legal contract by which th

Arrangement of documents in libraries, Arrangement of Documents in Librarie...

Arrangement of Documents in Libraries: Until the end of the 19th century library collections were small in size. Not as many subject fields had developed as one notice now, an

Rural tourism, QUESTION 1 (a) Write short notes on the following terms ...

QUESTION 1 (a) Write short notes on the following terms and provide examples where appropriate? I. Rural tourism II. Urban Tourism III. Ecotourism IV. Culture touri

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