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

Identification of potential risks, Question 1: Using as example an even...

Question 1: Using as example an event or conference and venue of your choice, explain how you would staff this event at this particular venue. Your answer should justify your c

Explain the crm strategy at harrahs entertainment, Campaign management at H...

Campaign management at Harrah's Entertainment Harrah's Entertainment is the world's largest gaming organization. Through Harrah's Total Rewards programme customers earn credit

Agency method - , Agency Method: The jobs included in the case of the ...

Agency Method: The jobs included in the case of the agency method can be listed as follows: Sending list of periodicals asking for pro-forma invoice from the agent Scrutinisin

Libraries as facilitators, Libraries as Facilitators: The libraries ar...

Libraries as Facilitators: The libraries are no longer passive observers of users trying to find their ways in libraries to locate what they want and are no more considered as

Subject access to opac, Subject Access to OPAC   The typical OPAC inter...

Subject Access to OPAC   The typical OPAC interaction process requires the matching or crude translation of user vocabulary to system vocabulary. It became apparent that the am

Communities of practice - differ and structure, Communities of Practice Dif...

Communities of Practice Differ and Structure Though a neighbourhood is called a community, not every community is called Community of Practice. Similarly, not everything which

Describe the occurrence of quantization error, Question 1 a) List the ...

Question 1 a) List the layers of the OSI model and briefly explain the function of each layer. b) List the three key elements of a protocol. Give a brief explanation of ea

Covering materials - binding materials, Covering Materials: Leather: ...

Covering Materials: Leather: Leather was the primary covering material for books until the third decade of the last century. It is only later that the commercial publishers

Functions of quality standard, Functions of Quality Standard Quality st...

Functions of Quality Standard Quality standards are the vital part in forming the Quality framework. They outline the elements of a quality. The functions of Quality standards

Discuss the relevance of evaluation, Problem: Dressel (1986) defines ev...

Problem: Dressel (1986) defines evaluation as "the collection and interpretation, through systematic and formal means, of relevant information which serves the basis for ration

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