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

Technical and operational performance of contracts, M onitoring  and  Co...

M onitoring  and  Controlling  Technical  and  Operational  Performance of Contracts (Contractors) Monitoring and controlling of a contract being executed by a contractor sho

Statistical process control, Problem QC is often performed by a team of...

Problem QC is often performed by a team of professionals who use specific techniques. These techniques do vary depending on the intended measurement. Without QC techniques, a c

Definition of library classification, Definition of Library Classification:...

Definition of Library Classification: Having understood the meaning of classification in library science, let us now go through a few well-known definitions of library classif

Sescribe the principles of bureaucratic management, Question 1: (a) Des...

Question 1: (a) Describe the five principles of bureaucratic management put forward by Max Weber. (b) Elaborate on the advantages and disadvantages of bureaucratic manageme

Managerial Economics, Explain the discounting principle. using the discount...

Explain the discounting principle. using the discounting principal calculate the present value of an annuity of five years at rs.500 payments made at the end of each of the next fi

Study the evolution and development of destinations, Question: The Tour...

Question: The Tourist Area Life Cycle as given by Butler (1980) is one of the most popular models which have been used and applied to study the evolution and development of de

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

Agriculture., scope of or

scope of or

Procedure of document selection - library administration , Procedure: ...

Procedure: The actual process  of document selection may be initiated in different ways. The acquisition staff take note of the desirable items and present them to the subject

Measure the effectiveness of the campaign, Question: The central Bank o...

Question: The central Bank of Utopia in the tiny kingdom of Bawana, near South Africa (pop 1.6 million) has decided to replace the twenty-five and fifty pesos notes by coins o

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