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

Risk classification based on where risk control lies, R i sk classificati...

R i sk classification based on where risk control lies From the point of view of where risk control lies, five classifications of risk can be listed: External risks wh

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

Explain materials required for crocheting, Question 1) Describe any five d...

Question 1) Describe any five differences between Weaving and Knitting Question 2) State the advantages of shuttleless looms Question 3) What is felting? Explain

Covering materials - binding materials, Covering Materials: Leather: ...

Covering Materials: Leather: Leather was the primary covering material for books until the third decade of the last century. It is only later that the commercial publishers

Explain the process involved in hr audit, Question 1 Explain the opportuni...

Question 1 Explain the opportunities and challenges in healthcare HRM Question 2 Discuss employee grievance systems in healthcare Question 3 Transactional analysis

Explain what you understand by corporate identity, Question 1: (a) Expl...

Question 1: (a) Explain what you understand by corporate identity. (b) What are the elements that constitute a Corporate Identity? (c) What is included in A Corporate Ide

Discuss the importance of having ilo standards on safety, QUESTION 1 De...

QUESTION 1 Describe the various methods that can be used at a place of work to ensure that the storage and handling of materials are carried out in an effective and efficient m

Resource sharing library network, Resource Sharing Library Network Res...

Resource Sharing Library Network Resource sharing is the focal point of library networking and cooperation. The tested technological advances in this field have tremendously i

Inter-library loan (ill) system, Inter-Library Loan (ILL) System of Online ...

Inter-Library Loan (ILL) System of Online Computer Library Centre (OCLC): The Inter-Library Loan (ILL) system of OCLC is world's largest online computerised ILL system used by

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