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

Meaning of communication, Question 1 Communication is the lifeblood of...

Question 1 Communication is the lifeblood of a business organisation. Explain the role of communication in Business. What are the various barriers to communication? Meaning

Legal requirements for hospitality establishments, Question 1: Designs ...

Question 1: Designs need to be practical, functional and rational. According to you and with appropriate examples from the hospitality industry, what are the common problems fa

Literature search services , Literature Search Services: Literature se...

Literature Search Services: Literature search service is considered as an extension of reference service. An important aspect of literature search service is ascertaining the

Bibliographic data formats, Bibliographic data formats Bibliographic d...

Bibliographic data formats Bibliographic data formats adopted for exchange of data consist of three basic components:  A defined physical structure: Rules for the arra

Define creativity, Question 1 What are special events? Give example. Wh...

Question 1 What are special events? Give example. What is meant by vision statement? What are the components of a good vision statement? Question 2 Every bidding doc

Cooperative and centralised cataloguing, Cooperative and Centralised Catalo...

Cooperative and Centralised Cataloguing   There are many similarities in objectives and purposes of cooperative and centralised cataloguing, however, there are many differences

Community of practice, Community of Practice Communities of Practice (C...

Community of Practice Communities of Practice (CoP) are a network of people who are engaged in the process of collective learning in a shared domain. In the organisational cont

Describe the approaches used to screen projects, Question 1 Describe the s...

Question 1 Describe the strategy planning tools of Ansoff matrix and BCG matrix Question 2 Describe the approaches used to screen projects Question 3 Explain any 3 par

Name catalogue - types of catalogue, Name Catalogue: A name catalogue ...

Name Catalogue: A name catalogue is a variation and extension of an author catalogue. It contains entries for works of an author and also for books written on him. All entries

How do you do this project, managing construction to build 15,000 sq meters...

managing construction to build 15,000 sq meters office you budget is $10 per sq meter timeline is to construct 3,000 sq meters per day you finish 7,000 sq meters of parking lot yo

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