Compensation Crises

Description
Compensation Crises

COMPENSATION CRISES

Group No:

HIGHLIGHTS
Cooks Industries, Pune
Set up in 1985
Owner: Ram Prakash (PGDM from IIM, Ahmedabad; expert in metallurgy and
mechanical engineering operations)
Shantanu Kamble (PGDM from IIM, Ahmedabad)
Ajay Malhotra: VP- HRM
Operation: Automobile Manufacturers

HIGHLIGHTS
Net Worth: Rs 300 Crores
Net Profit of Rs 35 Crores in 1995-96 on sales of Rs 275 Crores
450 Workmen; 100 Managers
Market dominated by a number of regional units

PROBLEM
In 1996, Cooks’ employee turnover rate crossed 15%
Employees migrated to West Asia and Australia or setting up their own units

Amam Consultants: Survey on “Salary Benchmarking Study”
Cooks at number 29 at the lowest level of Grade 10, and 23rd at the
highest level of Grade 1

ROOT CAUSE ANALYSIS

Designations
Hierarchies
Salaries
Taxation Policies
Leader-Follower



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