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

Liquidated damages, The General Condition of Contract provides clauses to e...

The General Condition of Contract provides clauses to establish the rights and liabilities of the Purchaser and the Supplier in connection with the execution of a procurement contr

Swot analysis, QUESTION 1 The Ministry of Information Technology has re...

QUESTION 1 The Ministry of Information Technology has recently launched a public debate on how to make Information Technology the Fourth Pillar of the Mauritian economy. Using

What are the benefits of cured composting, QUESTION 1 (a) In many part...

QUESTION 1 (a) In many parts of the world, health problems and diseases have been caused by discharging untreated or inadequately treated wastewater. Discuss comprehensively p

Importance of a price adjustment clause, QUESTION 1 (a) List five requi...

QUESTION 1 (a) List five required elements of a valid contract. (b) Give one circumstance when a contract can be modified. (c) Give one reason for which a public body may

What is tco (total cost ownership), Question 1 What is TCO (total cost own...

Question 1 What is TCO (total cost ownership)? List the common task in IT system management. Discuss each task in detail Question 2 Explain people process technology appro

Architecture of library building -library management, Architecture of libra...

Architecture of library building in library management Library activity is a specialised activity and it should be designed so as to carry out this activity  efficiently in a

Explain and discuss the management functions, Question 1: (a) Explain a...

Question 1: (a) Explain and discuss in detail, the management functions that are expected of managers. (b) Using illustrations, show how any one dysfunction in the above ma

Simplest transporting devices, The simplest transporting devices are wh...

The simplest transporting devices are wheel barrows and hand trucks. These are still in use in number of small industries all over the country. Figure (a) shows a ha

Describe the guidelines of change management, Question 1 Define strategic ...

Question 1 Define strategic quality management. Describe the elements of strategic quality management Question 2 Explain the types, advantages and drawbacks of qualitative re

Write Your Message!

Captcha
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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd