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

Clustering, In the past, in the Universe of Documents, the general trend ha...

In the past, in the Universe of Documents, the general trend has been to narrow the extension of a subject embodied in -a document taken as a whole. Therefore, there has been a gen

Stacking systems - library management, STACKING SYSTEMS: The main cons...

STACKING SYSTEMS: The main consideration in stacking is to achieve economy of space while ensuring ease of accessibility for the readers to the contents of the shelves. Space

Location site -preliminary considerations -library building, Location Site ...

Location Site -Preliminary Considerations of Library building-library managment Location is  important for homogeneous  services, site  selection and choice of community,  reg

Explain what the term preventive legal management address, Question 1: ...

Question 1: (a) Explain what the term "preventive legal management" addresses. (b) Describe any 5 stakeholders that have a legal relationship within the hospitality indust

Steps in developing a questionnaire, Steps in Developing a Questionnaire or...

Steps in Developing a Questionnaire or  Interview  Schedule: a)  Preliminary Decisions:  Decide  on  the form that the schedule will take  e.g. structured, unstructure

Constraints to successful merger integration, Constraints to Successful Mer...

Constraints to Successful Merger Integration Successful merger integration involves a number of constraints. Some of the key  constraints  include maintaining vital managers

Manufacturer''s authorization certificate, The Section ‘Instructions to Bid...

The Section ‘Instructions to Bidders' in the Bidding Documents for Procurement of Goods through Open Advertised Bidding is meant to guide the Bidders in submitting responsive bids

Define learning, QUESTION (A) Define learning (B) Playing on a backy...

QUESTION (A) Define learning (B) Playing on a backyard one day, three-year-old Albert is on a swing when a rabbit suddenly appears out of the bushes and startles him. He sli

Teachable point of view and knowledge creation, QUESTION 1 What standar...

QUESTION 1 What standards of ethics and integrity would you recommend for an organization that go beyond obeying the law and why? QUESTION 2 (a) Briefly set out the

Project quality management, Overview of Project Quality Management The ...

Overview of Project Quality Management The process of ensuring all project activities, that are necessary to plan, design and implement a project are efficient and effective wi

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