Compensation Management

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Caselet 1

Employees of SVS Pharmaceuticals were a worried lot. With the news that the company was going to merge with Vindhya Pharma, all of them were worried about what would happen to their jobs, and the other benefits as a result of the merger. There were all kinds of rumors regarding layoffs and reduction in pay and benefits. Vindhya Pharma was a leading firm with operations spread across Asia and Europe. SVS Pharmaceuticals had a strong hold in marketing and distribution in India, and so it was considered to be a merger of equals. Amid all the confusion, the employees received a message that the CEO would like to address them regarding the merger...

Caselet 2

Girish Pradhan is one of the many HR managers who have seen the ups and downs of retaining employees with stock options. In December 2000, at the peak of the IT boom, he joined the human resource department of Visiotech, one of the largest independent chip design firms. When Pradhan joined the firm, it was unlisted, but was on the verge of launching an IPO. The firm expected Visiotech's stock to soar rapidly after the IPO, as it was one of the leading chip designers...

Caselet 3

The northern division of Gautam Appliances met every month to analyze its targets and the actual sales. Shravan Kumar, a jovial and friendly manager who was respected by all the sales personnel, headed the meeting. His suggestions and other contributions during the meetings always helped sales personnel exceed their targets. He also gave a patient listening to employee problems and suggestions. During one such review meeting, one of the sales executives, Pavan Kumar, raised the issue of the uniform compensation system being implemented by the management...

Caselet 4

In a speech to the employees, the chairman of Praveen Metals said that to survive in the dynamic market, they must be able to switch gears and perform differently in response to change. According to him, traditional job titles and descriptions indicated a restricted set of work duties. Paying employees according to these structured duties led to rigidity during times of change...

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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