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

Explain the issue of performance management system, Question: (a) Expla...

Question: (a) Explain the issue of Performance Management System and its perceptions by the school organisations in Mauritius. (b) How will the Educational Administration an

Key concepts of management in six sigma, K e y concepts of management ...

K e y concepts of management The Key concepts of management in Six Sigma are Critical-To-Quality (CTQ), defect, process capability, variation, stable operations and Design Fo

Library binding - publisher casings and paperbacks, Library Binding: B...

Library Binding: Binding should be appropriate to the type of material and to the expected use. Early binding for libraries stressed strength, appearance being  only a seconda

Periodicals receiving work, PERIODICALS RECEIVING WORK: The work of re...

PERIODICALS RECEIVING WORK: The work of receiving periodicals is perhaps the most difficult activity in the Periodicals Department. It requires thoughtful planning and systema

Information may replace inventory., Explain what you understand by this sta...

Explain what you understand by this statement in the context of strategic inventory management.

Introduction to quality, Definition of Quality Quality  can  be  simply...

Definition of Quality Quality  can  be  simply  defined  as  the  measure  of  excellence.  When  a product is manufactured, the customer always looks for its quality, features

Determine the length of the dipole, Question: (a) A uniform linear arr...

Question: (a) A uniform linear array consists of 20 vertical dipoles, each spaced by half a wavelength in the horizontal plane. (i) If all array elements are fed in phase,

Librarians room in library building in library management, Librarians room ...

Librarians room in library building in library management The librarian normally has a separate room of his own, adjacent to the work room and opposite to the  main counter ar

Job description of the deputy estate manage, Question: a. Outline the ...

Question: a. Outline the needs when appointing Security and Domestic staff. b. Prepare the job description of the Deputy Estate Manage including the skills and ethics requ

Groupthink, Groupthink This is a condition where group pressures for co...

Groupthink This is a condition where group pressures for conformity prevent the group from critically evaluating alternative viewpoints. The classic example of groupthink, the

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