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

Syringe management plan, The purpose of this Syringe management plan is to ...

The purpose of this Syringe management plan is to protect the social community against injuries caused by syringes and help people manage the use of syringes in a safe and healthy

Terms related to procurement - supplies , Supplies  The supplier is res...

Supplies  The supplier is responsible for the delivery of goods/services that are ordered/contracted to him as per the order. However, purchaser has to ensure the goods are del

Surveys and censuses, Surveys and Censuses   There are also organisatio...

Surveys and Censuses   There are also organisations which have been set up specifically to gather statistical information through censuses and surveys. This may be considered a

Advantages of machine readable catalogue, Advantages The machine-reada...

Advantages The machine-readable catalogue performs, all the functions of a library catalogue with greater efficiency and speed than any other form. We shall spell out theseadva

Managerial writing, Managerial W riting This provides a channel...

Managerial W riting This provides a channel for management communication. Writing is a means of communication. It has specific advantages and disadvantages.  Advantages

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

Negotiation skills , Negotiation Skills  Negotiation is an interactive ...

Negotiation Skills  Negotiation is an interactive process between two or more parties seeking to find common ground on an issue or issues of mutual interest. Negotiation is als

Guidelines for conducting a competitive negotiation , Guidelines for conduc...

Guidelines for conducting a competitive negotiation  The most important rule in conducting a complex negotiation is that you should have done the planning for it and you should

Metrics, M e t r i cs Metrics is defined as the measurement to det...

M e t r i cs Metrics is defined as the measurement to determine the degree of the conformance to the  specifications. This measurement allows    the organisation to improv

Public catalogue -circulation area in library building, Public Catalogue  ...

Public Catalogue  -Circulation Area in library building in library management Public catalogue is the key to the document collection in a library and frequently used by the re

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