COMPENSATION CRISIS

GROUP – 4
Biraja Prasanna Dash
Gyandev boxi
Pooja Nial
Preetam Debasish Sahoo
Sabyasachi Barma
 FACT…..
• “COOKS” A PUNE BASED AUTOMOBILE COMPANY
• FOUNDER OF THE COMPANY -RAM PRAKASH AND
SHANTANU KAMBLE.
• AJAY MALHOTRA VICE-PRESIDENT OF (HRD )DEPT
OF COOKS.
• COOKS DEALS WITH ENGINE PARTS, PISTON,
PISTONS RINGS
• ENGINE VALVES ETC.
• TOTAL TURNOVER RS 3000 CRORE.
• 1990 PUBLIC ISSUES- 30 CRORE
• PROFITS 35 CRORE IN THE YEAR 1995-96
• PRESENTLY 450 WORKMEN(OPERATED IN 3
SHIFTS)
• 100 MANAGER
 MARKET SITUATION
 MARKET GROWTH 25% IN LAST THREE YEARS
 COMPANY GROWTH AT 33% LAST YEAR
 DEMAND OF AUTOMOBILE PARTS INCREASED
60%.
 EXPERIENCED MANAGEMENT
 JOINT VENTURES WITH FOREIGN MANUFACTURES



 ISSUES
 Employee turn over rate rises.
 Lack the services of expertise.
 Service functions also experience
departures .
 Failure to attract talented people.
 Old compensation package system.
 Grade structure is too long .
 Taxation policy
 Initial stage:
› Cash against vouchers for conveyance,
education & periodicals.
› It was attractive & well accepted.
 Current trend:
› Lesser proportions of salary is being paid
as cash reimbursements.
› Consolidated salary instead of various
allowances
› Tax burden is borne by individual
employees.
›
 Leader-Follower
 Cooks ranked 29th & 23rd in lowest &
highest levels.
 Cooks has to undertake a complete up
gradation of managerial remuneration.
 Should it be the leader in compensation by
giving highest salary or stay as a
follower.
 Q&A
 Itshould introduce base pay &
performance based pay system.
 Base pay should be similar to other
firms.
 Performance based pay should be very
much lucrative.
 Equity theory should be taken care of.
 Broad banding
 Technocrats should be provided with
better compensation.
•
 YOU
AN K
T H