User Account

All Pages

Discuss various concepts related to compensation management

Assignment Help Operation Management
Reference no: EM132883384

Tata Consultancy Services Ltd. (TCS), one of the leading Indian IT companies. TCS' compensation management system was based on the EVA model. With the implementation of Economic Value Added (EVA)-based compensation, the salary of employees comprised of two parts - fixed and variable. The variable part of the salary was arrived after considering business unit EVA, corporate EVA, and also individual performance EVA. During the fourth quarter of the financial year (FY) 2007-2008, TCs announced its plans to slash 1.5 percent of the variable component of employee salaries since its EVA targets for the third quarter of FY 2007 2008 were not met

The announcement came as a jolt not only to TCS employees but also to the entire Indian IT industry. The company came in for severe criticism and it was accused of not being transparent with respect to EVA calculation. However, some analysts felt that the pay cuts were a result of the macroeconomic challenges that the Indian IT companies were facing - rapid appreciation of the rupee against the US dollar and the recession in the US economy (USA was the largest market for the Indian IT companies)

QUESTION

Analyze TCS' HR practices with respect to its policy related to compensation of its employees.

Discuss various concepts related to compensation management. Discuss the importance of variable compensation in light of its ability to motivate employees and enhance organizational productivity.

Discuss the pros and cons of the EVA-based compensation management system and also analyze EVA as a performance measurement tool. » Understand the rationale behind the cut in the compensation of the employees at TCS.

Understand how macroeconomic variables could affect a company's HR policies

Reference no: EM132883384

Questions Cloud

Assess the types of blue bird quality initiative : (a) Assess the types of Blue Bird's quality initiative that you think would have been most useful in the situation mentioned above.
How could you identify any issues with the induction process : Explain how you would and how you can ensure that managers and supervisors involved in recruitment, selection and induction:
Enhance the workforce skills to adapt to 4ir : As the organizations getting prepared for the fourth industrial revolution, to enhance the skills of their workforce
Talk about preventative techniques-intervention strategies : Talk about preventative techniques and intervention strategies that could manage your violence.
Discuss various concepts related to compensation management : Tata Consultancy Services Ltd. (TCS), one of the leading Indian IT companies. TCS' compensation management system was based on the EVA model.
Investigate a possible pay issue : You are the HR Manager at a car dealership. The owner has asked you to investigate a possible pay issue. She gives you the following details:
What are the most important workplace trends affecting hr : Identify the HR challenges associated with each of the three major corporate strategies.
Benefits for expats taking on an assignment in ireland : What are some relocation benefits for expats taking on an assignment in Ireland?
Multinational corporation and transnational corporation : How would you respond in a way that clarifies the differences between multinational corporation and a transnational corporation and justify as to why Ford and P

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd