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

Document delivery service of insdoc, DOCUMENT DELIVERY SERVICE OF INSDOC: ...

DOCUMENT DELIVERY SERVICE OF INSDOC: INSDOC has been offering DDS at national level since 1952. The service is provided utilizing the entire country's resources including thos

Contract performance, Contract Performance Here let us see the final st...

Contract Performance Here let us see the final stages of completion of a contract. M onitoring You should closely monitor the performance of the consultant. This could

What are sbus and how effective are they, QUESTION 1 Discuss the strate...

QUESTION 1 Discuss the strategic decision making process. Support your answer with examples from an industry of your choice QUESTION 2 a) What are SBUs and how effectiv

Purpose of management of quality, P urpose of management of quality Le...

P urpose of management of quality Let us first discuss the importance of quality. Quality is  important  as  it  helps organisations achieve  their  internal and external g

Objectivity and economy - characteristics of research tool, Objectivity: ...

Objectivity: Objectivity means freedom from bias. A test should yield a clear  score value for each performance, the score being independent of the personal judgment  of the

Information centres, Information Centres: It is now customary to estab...

Information Centres: It is now customary to establish documentation cells within many special libraries to provide different types of information services to their clients. Wh

Describe carefully the forms of organizational culture, QUESTION 1 (a) ...

QUESTION 1 (a) What is an organization? (b) What is management? (c) Describe carefully the functions of managers in organizations QUESTION 2 Organisations are com

How does vocational choice take place, QUESTION The major psychometric ...

QUESTION The major psychometric preoccupation of vocational psychologists has been in the development of interest scales. Among the well-known tests are The Strong vocational i

Compact storage - library management, Compact Storage Another method ...

Compact Storage Another method of storage equipment is the compact storage system. Compact storage methods have been advocated and explored since the last century. However, t

Reference work - library management, REFERENCE WORK: The purpose of re...

REFERENCE WORK: The purpose of reference work is to allow information to flow efficiently from information sources to those who are looking for it. In the day to day activitie

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