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

Introduction to resource sharing network, Introduction to Resource Sharing ...

Introduction to Resource Sharing Network The term 'network' always has a wide range of meanings in everyday life and this situation is further complicated because it has two v

Type of building, Type of Building: The  number  of floors has direct effe...

Type of Building: The  number  of floors has direct effect on the  which  should be used.  Single  story building  the most  common  type  being  built today  lends  themselves to

Reliability - characteristics of research tools, Reliability: Refers  ...

Reliability: Refers  to  the accuracy  and consistency  of a measuring tool. A measure is reliable when  an  individual remains nearly  the  same  in repeated measurements. Re

Modern catalogue - evolution of catalogue, Modern Catalogue - evolution of ...

Modern Catalogue - evolution of catalogue: The 19 th century was an age of great many codes: Catalogue was considered a finding list with the Bodleian concept of literary uni

What do you meant by maintenance strategy, Question: 1. (a) What do...

Question: 1. (a) What do you meant by Maintenance strategy? (b) Name common Strategies and briefly explain them. (c) What are the steps that can be taken to improve

Explain the different steps of the proven path, QUESTION 1 The Proven P...

QUESTION 1 The Proven Path consists of a number of discrete steps. Explain the different steps of the proven path. QUESTION 2 One major step in getting organized is to

Relationship between values and organisation culture, Question: A stron...

Question: A strong and positive culture helps develop the consensus needed for organisations to cope well with changing environments. (a) Describe what is meant by organisat

Information behaviour, Information Behaviour: Briefly, information beh...

Information Behaviour: Briefly, information behaviour means the way users seek information, the way they go about finding it and the way they use it. Again, users' information

Government relations, Government Relations This is a sub function of co...

Government Relations This is a sub function of corporate communication more frequently called public affairs. Depending on your organizations, the importance of government re

Sustainable issues in Asia, What have been the traditional; strengths and w...

What have been the traditional; strengths and weaknesses for Asian countries in the pursuit of sustainable development and CSR policies?

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