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

Identify and explain the eight quality management principles, QUESTION 1 ...

QUESTION 1 By referring to internal factors of enterprise productivity, discuss how you would improve the productivity of the organization where you are working in? QUESTIO

Information systems implementation, Information Systems Implementation ...

Information Systems Implementation 1. Will implementing SAP R/3 across the entire PCD division provide the division with a competitive advantage?  Justify your answer carefull

Cyclostyled form - conventional forms, Cyclostyled Form: Revised vers...

Cyclostyled Form: Revised version of bound register form came into existence due to the typewriter and cyclostyling machine. The entries are typed. Multiple copies (up to four

Types of research, Types: There are various types of survey research-descri...

Types: There are various types of survey research-descriptive,  evaluative, comparation, correlation, longitudinal, cross-sectional, cross-cllltural, etc.  Descriptive  Survey:

Entry - definition, What is an Entry? An entry is a record of informat...

What is an Entry? An entry is a record of information for a specific purpose. This information is entered into a ' kind of a record. Suppose you have the habit of recording in

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

Investment management, You are a manager in the investment industry, whose ...

You are a manager in the investment industry, whose role is to provide investment portfolio advice and managementto a client, who is your investorprincipal. You should identify t

Differentiate between overt and covert resistance to change, Question: ...

Question: "Resistance to change is not only a predictable part of change, it is perhaps the most difficult phase to deal with. People resist change for good reasons, even thoug

Explain the concept of synergy, QUESTION 1 (a) Explain the concept of s...

QUESTION 1 (a) Explain the concept of synergy (b) Using examples, discuss the main areas/sources of potential synergy when two companies merge (c) What are the problems i

Catalogue code - planning and organisation, Catalogue Code: As with cl...

Catalogue Code: As with classification schemes, there are different catalogue codes available for use in libraries. Two of them are already known to you as they are prescribed

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