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

Local book suppliers and , Local Book Suppliers:  Every library has to...

Local Book Suppliers:  Every library has to depend on local booksellers for most of the supplies. Unlike the major outside book markets referred to earlier, local book shops d

Domain, D omain A community will be just a group of friends without th...

D omain A community will be just a group of friends without the commitment to the domain. A domain is not just the group of people with connections but it is an identity which

Problems of dds and role of internation organisation, PROBLEMS OF DDS AND R...

PROBLEMS OF DDS AND ROLE OF INTERNATION ORGANISATION: Copyright issues, non-availability of publications and restrictions imposed on the storage and delivery of documents elec

Explain the main spheres of sponsorship in pr, Problem 1 (a) Illustrate...

Problem 1 (a) Illustrate on the 3 main stages of the development of PR in the U.S? (b) Describe the main transformations that PR has undergone since its inception? Pro

Document delivery service - world scenario, DOCUMENT DELIVERY SERVICE .WORL...

DOCUMENT DELIVERY SERVICE .WORLD SCENARIO: Earlier libraries and information centres had no capability to deliver the documents other than to buy them from the publishers, dis

Stack guides - library management, Stack Guides: Guides are to be put...

Stack Guides: Guides are to be put up at different places in the library in order to enable a user to find his/ her way into different parts of the library with minimum of ass

Roles of government in the economic development of a country, Question 1: ...

Question 1: (a) What are the main roles of Government in the economic development of a country? (b) What are some of the emerging issues affecting the role of Government?

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?

Cultivating communities of practice, C ultivating communities of practice ...

C ultivating communities of practice In an organisational life, the CoP has been readily accepted by people. It will flourish irrespective of whether the organisation recognis

Facilitating centres/services, Facilitating Centres/Services  Traditio...

Facilitating Centres/Services  Traditionally, only libraries functioned as facilitators, but over a period of time, several other specialized facilitating services have come i

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