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

Power positions in negotiations, Power positions in negotiations Power...

Power positions in negotiations Power is simply the ability to influence another person or organisation. X has power over Y if X can get Y to do things that directly benefit X

Selection of sources, Selection of Sources: A good approach to literat...

Selection of Sources: A good approach to literature search is looking up a bibliography, an encyclopaedia or a review publication. This provides background information as also

Define a safety and health at work policy, QUESTION 1 (a) State 5 crite...

QUESTION 1 (a) State 5 criteria which should be taken into consideration when planning a safe place of work. (b) Briefly describe them. QUESTION 2 (a) Define a safe

Maturity model in cobit 5, Maturity model in CobiT 5: CobiT 5 maturity ...

Maturity model in CobiT 5: CobiT 5 maturity model is based on the ISO/IEC 15504. This new model presents some differences (CobiT 5 2012). However, an important similarity betwe

Describe the process of communication, Question 1 (a) Using examples, ...

Question 1 (a) Using examples, describe the process of communication, including the different elements of the communication process. (b) Show the different functions of co

Reference service - information behaviour, Reference Service:  Notwith...

Reference Service:  Notwithstanding library catalogues and various other aids available for exploiting the library resources, users would frequently need some personal assista

Organizing an event is extremely challenging task, Question 1 The event...

Question 1 The event manager plays a pivotal role in event management company. Discuss his role and explain the important steps he has to take to ensure a successful event

Withdrawal - library management, Withdrawal - library management: A bo...

Withdrawal - library management: A book may be withdrawn from collection/from the stock register and shelf list if:  •  it is outdated  •  worn out beyond repair  •

Staff activity area of library building -library management, Staff Activity...

Staff Activity Area of library building -library management Main activities carried out by the professional staff of the library are: Acquisition, Technical Processing (catalo

Explain incremental models of policy-making, Question 1: (a) Describe t...

Question 1: (a) Describe the concept of "modelling' as applied in educational administration. Analyze this concept with respect to the synoptic and the incremental models of po

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