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

The kardex system - , The Kardex System: This system was introduced by...

The Kardex System: This system was introduced by the Remington Rand of India, Ltd. It is a type of visible record system maintained in a steel filing cabinet. Each unit cabine

Difference between dictionary and classified catalogue, Difference between ...

Difference between dictionary and classified catalogue: Of the many inner forms of a library catalogue, the most popular ones are the dictionary and classified catalogues. The

Definitions of classification terminology, DEFINITIONS OF CLASSIFICATION TE...

DEFINITIONS OF CLASSIFICATION TERMINOLOGY: Most of the terms with definitions were used for the first time in the first edition of Prolegomena to Library Classification (1937)

Million Word Dictionary, What does the word icy has to do with the word rem...

What does the word icy has to do with the word remote?

International Business, Based on the article Nearshoring in Latin America,...

Based on the article Nearshoring in Latin America, what are the short- and long-term implications of nearshoring given the current economic conditions?

Building the team, QUESTION Leadership is essential for the success of ...

QUESTION Leadership is essential for the success of any organization (i) Briefly explain the need for leadership for a manager to be successful (ii) Briefly describe the

Describe the types of business policies, Question 1 What do you mean by fa...

Question 1 What do you mean by family business? Explain the family business life cycle Question 2 Describe the types of business policies Question 3 List and expla

Describe notion of marine biodiversity, Question: (i) Describe your not...

Question: (i) Describe your notion of "marine biodiversity" with an appropriate illustration? (ii) Name the different levels at which marine biodiversity can be depicted in

How is the cost of fca best defensible to the public, Q. How is the cost of...

Q. How is the cost of FCA best defensible to the public? FCA is not a fixed product it is an approach, it is potential to tailor a cost-effective FCA system to meet the require

Need for several entries - catalogue entry, Need for Several Entries   ...

Need for Several Entries   A library catalogue can just meet any one type of user's approach like author approach, title approach, etc. We can also prepare catalogues, which ca

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