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

Military army or air force , Can you help me get prep or my ASVAB exam.

Can you help me get prep or my ASVAB exam.

Definition of volume and periodical publications, Definition of "Volume" : ...

Definition of "Volume" : Economy in  the cost of  binding. reduction in the number of undersized volumes difficult to handle, the need for splitting  over thick and composite

Solid waste management, The solid wastes from a summer camp with 100 childr...

The solid wastes from a summer camp with 100 children and a staff of 25 are to be collected once per week. If bottles and cans (representing 20% of the weight) are removed, paper

Different types of information services, DIFFERENT TYPES OF INFORMATION SER...

DIFFERENT TYPES OF INFORMATION SERVICES: Modem libraries and information centres provide a variety of documentation and information services to support research and developmen

Purpose of information, Purpose of information: A researcher needs inf...

Purpose of information: A researcher needs information for three purposes.  To keep up with new developments in his area of interest;  To get acquainted with the state-o

Types of audit, There are different types of audits performed to check disc...

There are different types of audits performed to check discrepancies in various departments some of the types of audits are described. Economic audits or reviews.

Quality management plan, Q uality management plan The quality manageme...

Q uality management plan The quality management plan is to give guidance on how the quality can be checked on the project through the design reviews, the documentation, and th

Developing procedures to facilitate recording, Developing Procedures to Fac...

Developing Procedures to Facilitate Recording: In  order  to have adequate account-of what was observed  during observation  some procedurrecordings should be  followed, eithe

Organisational Change, Question 1. Demonstrate the use of analytical tools ...

Question 1. Demonstrate the use of analytical tools to monitor the progress and the effect of change Question 2. Assess monitoring and measurement techniques to change within an o

Document delivery services , Document Delivery Services: Information s...

Document Delivery Services: Information searches conducted by library or information specialists from databases usually are from bibliographic much less on full-text databases

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