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

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

Elements and principles of tqm, QUESTION 1 For the successful implement...

QUESTION 1 For the successful implementation of Total Quality Management (TQM) in any business setting, the latter must concentrate on the components, elements and principles o

Short-term decision-making problem, A company manufactures and sells a sing...

A company manufactures and sells a single product. The variable cost of the product is Rs 2.50 per unit and all production each month is sold at a price of Rs 3.70 per unit. A pote

Implementation of operations, Question 1 In the recent times, operations a...

Question 1 In the recent times, operations are considered from end to end of value chain which means the operations that start from sourcing of materials and other inputs to succe

Management accounting, #question.classifications of cost for planning.

#question.classifications of cost for planning.

An emerging model of responsive governance, The Public Sector Administratio...

The Public Sector Administration has undergone a process of evolutionary reform from the Traditional Public administration to NPM and now to an emerging model of responsive govern

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

Self-managed teams, In these teams the members themselves will not only per...

In these teams the members themselves will not only perform the work but also monitor, measure, and manage their performance.

Implementation of the project and assign a time frame, Government has decid...

Government has decided to construct a tunnel via le Pouce Mountain to provide an alternative access to Port Louis for road users coming from the east. Assuming that roads on both s

Publisher casings and paperbacks - library bindings, Publishers' Casings an...

Publishers' Casings and Paperbacks  It is a light straw-board cover, over which an attractive coloured cloth is glued. This casing is attached to the book itself by narrow tap

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