Compansation Management free essay sample

But he decided to stay on as he had promised several things to the management in the interview. He wanted to please and change the attitude of management through his diligent performance, firm commitment and dedication. He started maximizing his contributions and the management got the impression that Mr. Sashidhar had settled down and will remain in the company. After some time, the superiors started riding rough- shod over Mr. Sashidhar. He was over- loaded with multifarious jobs. His freedom in deciding and executing was cut down. He was ill- treated on a number of occasions before his subordinates. His colleagues also started assigning their responsibilities to Mr. Sashidhar. Consequently there were imbalances in his family life, social life and organizational life. But he seemed to be calm and contented. Management felt that Mr. Sashidhar had the potential to bear with many more organizational responsibilities. So the General Manager was quite surprised to see the resignation letter of Mr. Sashidhar along with a cheque equivalent to a month’s salary one fine morning on 18th January, 2004. The General Manager failed to convince Mr. Sashidhar to withdraw his resignation. The General Manager relieved him on 25th January, 2004. The General Manager wanted to appoint a committee to go into the matter immediately, but dropped the idea later. Questions: 1. What prevented the General Manager from appointing a committee? 2. What is wrong with the recruitment policy of the company? IIBM Institute of Business Management 3 Examination Paper: Personnel Management Caselet 2 When Adite Technologies Ltd (ATL) moved one of their divisions to Bangalore, the branch manager in Mumbai decided to transfer those employees who did not wish to go to Bangalore to other local divisions. Ten of the thirty chose to stay and to be transferred to another division. Madhuri was one of those. She was assigned to the computer moving-head division. When Madhuri reported to the new job, Narender Kumar, her new supervisor told her he did not know whether or not he would have a permanent position for her. For three days Madhuri sat and watched other employees do their work. One Friday, Narender announced that their division had received another big contract and he would brief Madhuri on her new assignment on Monday. Madhuri arrived at 9:00 am Monday morning and waited anxiously to learn about the new job. Narender did not arrive until 10:30. He was being briefed on the new contract; he said and would not be able to meet Madhuri before lunch. At 1:30 pm Narender returned to show Madhuri the operation, ‘we are reworking model 10-D and it only requires changing two spot welds. With this jig, you can turn one out in about three to five minutes’. Narender added,’ By the way will be the quality control supervisor on this job. Just double Madhuri was given no idea how important the checks might be. ‘Please watch me’, said Narender Madhuri, taking up the welding torch. ‘Any one can do it easily’. He repeated the operation five or six times. Madhuri tried it and experienced no difficulty. Neither of them checked their reworked pieces with the blue print to see if they would pass the quality check and as a result, Madhuri never checked any pieces after that demonstration. Narender did not see again until Friday. During the week several things happened. More than half the motors did not work correctly by the time they reached the final assembly. It could not be determined whether the faulty motors were the result of Madhuri’s work or the result of a lack of quality checks. A box of 20 parts had been approved by Madhuri since her initials were on the inspection card, but she had not made the necessary alterations. That was when Narender found time to talk to Madhuri again. Questions: 1. What incidents showed that Narender was not performing a good job as a trainer? 2. How do you think Madhuri feels about Narender and about her new job? END OF SECTION B IIBM Institute of Business Management 4 Examination Paper: Personnel Management Section C: Applied Theory (30 Marks) †¢ †¢ †¢ †¢ This section consists of Applied Theory Questions. Answer all the questions. Each question carries 15 marks. Detailed information should form the part of your answer (Word limit 200 to 250 Words) 1. What do you understand by the term ‘Performance Appraisal’? Discuss the various methods of performance appraisal in detail. 2. What is Training? Why is training necessary for organization performance and success? END OF SECTION C IIBM Institute of Business Management 5 Examination Paper: Personnel Management IIBM Institute of Business Management Examination Paper Compensation Management Section A: Objective Type (30 marks) †¢ †¢ †¢ This section consists of Multiple Choice questions short note questions. Answer all the questions. Part one questions carry 1 mark each Part Two questions carry 5 marks each. MM. 100 Part One: Multiple Choices 1. A ________ is a hierarchy of jobs to which wage rates have been attached. a. Wage Level b. Wage Structure Page 7 c. Wage Index d. Wage Policy 2. It is the wage which is above the minimum wage but below the living wage. a. Basic wage b. Overtime page 40 c. Fair wage d. Compensation 3. It is the process of minimizing the physical and perceptual loads imposed on people engaged in any type of work. a. Motion Economy page 149 b. Human Engineering c. Value Analysis d. Task Identity 4. It is the method which lists frequency of critical behaviors in an employee. a. Performance Appraisal b. Performance Matrix Page 210 c. 360 degree feedback d. Management by Objectives 5. A map to illustrate behavioral parameters requires in competent performance is: a. Competency Mapping b. Balanced Score Card c. Behavioral Observation Scale d. Key Results Areas Page 210 IIBM Institute of Business Management 6 Examination Paper: Personnel Management 6. In this type of team, team members are temporarily assigned some tasks to accomplish: a. Cross functional Team b. Hybrid team c. Process Team Page 224 d. Parallel Team 7. The practice of comparing compensation with other competing to offer a competitive pay package to employees, is refer as: a. Broadband Policy b. Bench Marking Page 253 c. Retention Policy d. None of the above 8. Any wage cost not directly connected with the employees’ productive effort, performance service, is called: a. Allowances Page 267 b. Incentives c. Fringe Benefits d. Bonus 9. It is a company’s expenditure spent directly on employees excluding the cost of infrastructure: a. Basic Salary b. Cost to company Page 343 c. Allowances d. Bonus 10. Strategy that provides overall guidelines for the organization is refer as: a. HR Strategy b. Functional strategy c. Corporate strategy Page 366 d. Operational strategy Part Two: 1. Discuss the terms ‘wages’ and ‘salary’. What factors determine the wage structure in an industrial enterprise? 2. Define job design. Briefly explain various technique of job design. 3. What is a balanced Score Card.? What are its different perspectives? 4. Write a short note on 360-degree performance feedback. END OF SECTION A IIBM Institute of Business Management 7 Examination Paper: Personnel Management Section B: Caselets (40 Marks) †¢ †¢ †¢ †¢ This section consists of Caselets. Answer all the questions. Each Caselet carries 20 marks. Detailed information should form the part of your answer (Word limit 150 to 200 words). Caselet 1 page 344 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. Caselet 2 You are a Manager, the Financial Analysis department of Mendelssohn’s Insurance. Your assistant, Denzil Worsnip, has worked for you two years. He is 24 years of age and joined Mendelssohn’s as an ‘A’ level entrant. He progressed through the support functions, from junior clerk to section head. He showed such promise that the company sponsored him at evening classes to study for the accounting technicians exams. He is over half way through this at the moment and is due to take his final exams in 9 months time. His aim in joining your team was to use the job as a stepping tone to one of the sales teams. You were not bothered that Denzil looked on the job in this way a you are all in favor of encouraging people to get on. IIBM Institute of Business Management 8 Examination Paper: Personnel Management In nay case, you know it is exceptionally difficult to get onto one of these sales teams, particularly these days with the company placing so much emphasis on its graduate recruitment. You know he was put out recently when the Unit Trust team hired a graduate trainee, as he had put a lot of effort into chatting them up. Nevertheless, Denzil does not accept that the new recruit had an advantage in that he is a qualified actuary. Until a few months ago, Denzil had been an above average employee. He was always cheerful, enthusiastic and willing. He also picked things up quickly. You used to have regular weekly team meetings. You used to use these meetings to get suggestions on your new procedures. Denzil used to make an excellent contribution to these meetings; he was always full of ideas. It is a shame that there is now so little time for these meetings. You often used to give Denzil some one-off projects to do. He always handled them well and he was always able to squeeze in the extra work. He was also quite prepared to work late time for these meetings. You often used to give Denzil some one-off projects to do. He always handled them well and he was always able to squeeze in the extra work. He was also quite prepared to work late without overtime pay. In the last few months, he seems to have really changed. The other day, he refused to take on a job you wanted him to do. You remember that about four months ago, a similar thing happened. He complained that he had enough to do and could not take on any more and that he was fed up of working every day until 8’o clock. You were annoyed at this because you felt Denzil could take on the extra work, he would just have to assess his priorities better. Anyway, it was only additional routine work you wanted him to do. You knew he was too busy to do ant projects so you were doing this yourself to keep the pressure off Denzil. As for all the overtime, partly, Denzil does go in for long lunch breaks. Networking he calls it. The loss of one person has put additional pressure on the team, but you feel you should most of it. The others just need to find more efficient working practices. Denzil has also recently taken to being very off-handed to people. You have overheard him several times being rude, both on the ‘phone and in person’ to people from the business teams who ask him for information or help. He has been very rude to you too and obviously completely fails to appreciate the extreme pressure you are under. Last week, for instance, you got your team together to tell them about the new procedure, you are implementing, Denzil sat there fuming and then started carrying on at you for having drawn up this new procedure in secret and also claimed the procedure to be unworkable and pointed out some faults.