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

Describe the term media literacy, It is one thing to understand the basic i...

It is one thing to understand the basic importance of being a media literate individual of knowing its basic elements and necessary skills. It is quite another to live a media lit

Perfect binding - library bindings, Perfect binding: The need to find ...

Perfect binding: The need to find a less expensive process for binding paperbacks led to the development of the 'perfect binding' - Considered as the most imperfect. This subs

Describe the communication difficulties that may exist, Question 1 You ...

Question 1 You have been requested by your Superior to deliver a speech to a hundred parents on the importance of a balanced diet for their children. Describe the communication

Service Marketing, understand the prospect for growth in global services

understand the prospect for growth in global services

Research tools - library management, RESEARCH TOOLS: Questionnaire and...

RESEARCH TOOLS: Questionnaire and interviews are probably the most  frequently used  data collection methods  in  rlursing research. Observation  is also an  important method

Library cooperation, LIBRARY COOPERATION   Libraries have many things i...

LIBRARY COOPERATION   Libraries have many things in common. The processes and practices in several libraries are similar. Even the problems of management and services are commo

Internal techniques of exposure management, Question 1: i) What are eu...

Question 1: i) What are eurosecurities? ii) Assess the reasons for the growth in eurosecurities markets and discuss the implications of these markets for international ban

Define the service providers under foreign trade policy, Question A ) Disc...

Question A ) Discuss the changes in the composition of India's export and import since 1991. How has this affected Balance of payment situation of India? Question B ) Trading

Incentives, I ncentives These are rewards given when vendor/contractor...

I ncentives These are rewards given when vendor/contractor exceeds your expectation. Incentives should increase contractor?s profit. Incentives can be categorised as:

Analyze the excellence theory in public relations, Question 1 The excel...

Question 1 The excellence theory is a general theory of public relations that resulted from a 15-year study of best practices in communication management funded by the Internat

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