DHR 11
WAGES AND SALARY ADMINISTRATION
Assignment-I
Assignment Code: 2017DHR11B1 Last Date of Submission: 15th November 2017
Maximum Marks: 100
Attempt all the questions.
SECTION – A (25 marks for each question)
1. Explain the concept of fringe benefit. What are the special features of fringe benefit and service programmes?
2. Do you think that non-financial motivators can work more effectively when integrated with financial rewards in a total reward process? Give reasons to support your example with suitable example.
Section-B (50 Marks)
Case Study
Tata Consultancy Services Ltd. (TCS), one of the leading Indian IT companies. TCS’ compensation management system was based on the EVA model. With the implementation of Economic Value Added (EVA)-based compensation, the salary of employees comprised of two parts – fixed and variable. The variable part of the salary was arrived after considering business unit EVA, corporate EVA, and also individual performance EVA. During the fourth quarter of the financial year (FY) 2007-2008, TCS announced its plans to slash 1.5 percent of the variable component of employee salaries since its EVA targets for the third quarter of FY 2007-2008 were not met. The announcement came as a jolt not only to TCS employees but also to the entire Indian IT industry. The company came in for severe criticism and it was accused of not being transparent with respect to EVA calculation. However, some analysts felt that the pay cuts were a result of the macroeconomic challenges that the Indian IT companies were facing — rapid appreciation of the rupee against the US dollar and the recession in the US economy (USA was the largest market for the Indian IT companies)
Case Questions:
1. Analyze TCS’ HR practices with respect to its policy related to compensation of its employees.
2. Discuss various concepts related to compensation management.
3. Discuss the importance of variable compensation in light of its ability to motivate employees and enhance organizational productivity.
4. Discuss the pros and cons of the EVA-based compensation management system and also analyze EVA as a performance measurement tool.
5. Understand the rationale behind the cut in the compensation of the employees at TCS.
DHR 11
WAGES AND SALARY ADMINISTRATION
Assignment II
Assignment Code: 2017DHR11B2 Last Date of Submission: 15th November 2017
Maximum Marks: 100
Attempt all the questions.
SECTION – A (25 marks for each question)
1. What is the role of compensation and rewards in modern organizations? What are the advantages of fair compensation systems?
2. How does an organization align compensation strategy with its HR strategy and Business strategy?
Section-B (50 Marks)
Case Study
In 2007, the Indian subsidiary of a multinational refinery became a Government of India company. The government company had announced an ambitious expansion programme which meant doubling the work force in less than four years. In 2007 at the time of wage revision, the union and management agreed to a two-tier pay structure. Those already employed will be eligible for a higher grade and those who are (to be) recruited afresh will get a lower grade though jobs are similar in skill, responsibility and effort. Both the union and the management justified that this is an innovative practice widely followed in deregulated companies abroad, particularly the airlines in North America.
Case Questions
a) Is it fair agreement?
b) Would it contravene with the concept of equal pay for equal work?
WAGES AND SALARY ADMINISTRATION
Assignment-I
Assignment Code: 2017DHR11B1 Last Date of Submission: 15th November 2017
Maximum Marks: 100
Attempt all the questions.
SECTION – A (25 marks for each question)
1. Explain the concept of fringe benefit. What are the special features of fringe benefit and service programmes?
2. Do you think that non-financial motivators can work more effectively when integrated with financial rewards in a total reward process? Give reasons to support your example with suitable example.
Section-B (50 Marks)
Case Study
Tata Consultancy Services Ltd. (TCS), one of the leading Indian IT companies. TCS’ compensation management system was based on the EVA model. With the implementation of Economic Value Added (EVA)-based compensation, the salary of employees comprised of two parts – fixed and variable. The variable part of the salary was arrived after considering business unit EVA, corporate EVA, and also individual performance EVA. During the fourth quarter of the financial year (FY) 2007-2008, TCS announced its plans to slash 1.5 percent of the variable component of employee salaries since its EVA targets for the third quarter of FY 2007-2008 were not met. The announcement came as a jolt not only to TCS employees but also to the entire Indian IT industry. The company came in for severe criticism and it was accused of not being transparent with respect to EVA calculation. However, some analysts felt that the pay cuts were a result of the macroeconomic challenges that the Indian IT companies were facing — rapid appreciation of the rupee against the US dollar and the recession in the US economy (USA was the largest market for the Indian IT companies)
Case Questions:
1. Analyze TCS’ HR practices with respect to its policy related to compensation of its employees.
2. Discuss various concepts related to compensation management.
3. Discuss the importance of variable compensation in light of its ability to motivate employees and enhance organizational productivity.
4. Discuss the pros and cons of the EVA-based compensation management system and also analyze EVA as a performance measurement tool.
5. Understand the rationale behind the cut in the compensation of the employees at TCS.
DHR 11
WAGES AND SALARY ADMINISTRATION
Assignment II
Assignment Code: 2017DHR11B2 Last Date of Submission: 15th November 2017
Maximum Marks: 100
Attempt all the questions.
SECTION – A (25 marks for each question)
1. What is the role of compensation and rewards in modern organizations? What are the advantages of fair compensation systems?
2. How does an organization align compensation strategy with its HR strategy and Business strategy?
Section-B (50 Marks)
Case Study
In 2007, the Indian subsidiary of a multinational refinery became a Government of India company. The government company had announced an ambitious expansion programme which meant doubling the work force in less than four years. In 2007 at the time of wage revision, the union and management agreed to a two-tier pay structure. Those already employed will be eligible for a higher grade and those who are (to be) recruited afresh will get a lower grade though jobs are similar in skill, responsibility and effort. Both the union and the management justified that this is an innovative practice widely followed in deregulated companies abroad, particularly the airlines in North America.
Case Questions
a) Is it fair agreement?
b) Would it contravene with the concept of equal pay for equal work?
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