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

Research approach, RESEARCH APPROACH: Research approach (design) is th...

RESEARCH APPROACH: Research approach (design) is the researchers overall plan for answering the research questions. The  design  indicates whether or not there is  an  interve

Library catalogue, LIBRARY CATALOGUE A modern library provides a num...

LIBRARY CATALOGUE A modern library provides a number of facilities to its readers for making use of its collection. One such facility is the catalogue of the library which f

Purpose and objectives of binding - library management, Purpose and Objecti...

Purpose and Objectives of Binding : Unlike private collection, books in libraries are to be used by successive groups-be it a public library or an academic library-and hence n

Management Principals, Please quote on 5 case study questions and 6 sub que...

Please quote on 5 case study questions and 6 sub questions

Documentation and information centres and databases , DOCUMENTATION AND INF...

DOCUMENTATION AND INFORMATION CENTRES AND DATABASES:   Traditionally, libraries have been collecting various kinds of publications and holding them in readiness for use by scho

Explain the philosophy behind quality management system, Question 1: (a...

Question 1: (a) Explain the basic philosophy behind quality management systems such as those specified in ISO 9000:2000 series. (b) Discuss how an effective quality manageme

Acquisition through exchange , Acquisition Through Exchange: Acquisiti...

Acquisition Through Exchange: Acquisition through exchange is another mechanism by which Collection Development can take place. Of course, it goes without saying that the libr

Configuration manager, T he configuration manager The configuration ma...

T he configuration manager The configuration manager is approximately tangential to the change management process in that, the configuration manager has no approval authority

Outline the characteristics of tourism services, QUESTION 1 (a) Describ...

QUESTION 1 (a) Describe the role of public sector in the development of tourism Industry? (b) Describe the role of private sector in the development of tourism Industry?

Types and structure, Types and Structure: Types and Structure The  des...

Types and Structure: Types and Structure The  design of a useful  schedule normally  involved extensive planning, consultation with  colleagues and experts, pretesting and rev

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