Was the incentive scheme wrong in any way


Was the incentive scheme wrong in any way

Case study -2 (25 marks)

A Food specialty is presently headed by Nandan Vinayak. The company is doing business very well and its profits are on continuous rise. The company has maintained a steady profitability, sales and performance track record. The employees are mostly less paid and less educated. Most of them are semiskilled and coming from nearby rural areas. Mr. Nandan is quite happy with the existing situation. He has recently launched an expansion program ha fetched him grand success. The new products of the company are highly appreciated. In discussion with his closest colleagues he decided to institute a program of employees rewarding employees with silver potteries. The types of silver wears were to vary from employees to employees depending on his tenure of service and cadre in which he has served. Mr. Nandan felt that he would receive a grand reception on this announcement. The announcement was made on 12th October in order to offer Diwali Gifts to the employees. Instead, after he cheerfully presented his plan, he faced a silent group of weary workers staring back at him in near disbelief. Most of them were nervous and unhappy. They thought that this is not what they expected for the tremendous labour put in as a reward. Mr. Nandan was puzzled at the pathetic response of the workers.

  1. Analyze the case


  1. Was the incentive scheme wrong in any way?

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Was the incentive scheme wrong in any way


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