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

Myths which people usually associate to knowledge management, QUESTION ...

QUESTION Federal Express: Turning expressed knowledge into profits ‘Before the emergence of the web, Federal Express developed and implemented an internal technology based syst

Referral centres, Referral Centres: A referral centre is some sort of ...

Referral Centres: A referral centre is some sort of "information desk" for the scientific and technical community which does not provide enquirers directly with the informatio

Planning and design for a new property, Question 1: Show the importance...

Question 1: Show the importance of facilities planning and design with regards to: (i) Land (ii) Esthetics (iii) Space (iv) Buildings (v) Innovation (vi) Acces

Data mining, Hi, I have a data mining solution which have be done using Rap...

Hi, I have a data mining solution which have be done using Rapid Miner 3.5 but I want some help to do a write up part and show the result that I got. So, I want you to answer quest

History of catalogue codes - library catalogue code, HISTORY OF CATALOGUE C...

HISTORY OF CATALOGUE CODES : The 19th century marks the beginning of code making. Since it is not easy to make a complete survey, we will introduce you to a select number of c

Purpose and scope - literature search, PURPOSE AND SCOPE - LITERATURE SEARC...

PURPOSE AND SCOPE - LITERATURE SEARCH: There are many  purposes for  reviewing the literature before  conducting a research study. The most  important one  is:  To  determi

Aligning mergers and acquisitions with corporate strategy, A ligning Merge...

A ligning Mergers and Acquisitions with Corporate Strategy In the previous section we learnt about the motives for acquisition. In this section, we will learn how to align Mer

Library equipment in physical planning of library , LIBRARY EQUIPMENT IN PH...

LIBRARY EQUIPMENT IN PHYSICAL PLANNING OF LIBRARY IN LIBRARY MANAGEMENT Most of the equipment used in the library is standard office equipment, sometimes adapted library use.

General observations - information generation process, GENERAL OBSERVATIONS...

GENERAL OBSERVATIONS: Large scale use of information in all countries by a wide cross section of people has resulted in the coming of terms like 'information age and informati

Physical processing work - procedures, Physical Processing Work: Cutt...

Physical Processing Work: Cutting : It is often found that books are received with partially uncut sections. If these are left unnoticed, readers may carelessly open up the p

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