Asahi India Glass (AIS) - A Case Study
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Transcript of Asahi India Glass (AIS) - A Case Study
Asahi India Glass – A Case Study
Presented By
Arti Kumari
Debarati Sen Gupta
Monalisa Ghosh
Maneet Kumar
Mani Shankar Sonkushre
Man Mohan Anand
2009-11 Batch
M.S.Ramaiah Management Institute, Bangalore
Company Profile
Asahi India Glass (AIS) was incorporated in 1983-1984 as Indian Auto Safety Glass.
Largest Glass Company in India, manufacturing a spectrum of International quality
automotive safety glass, float glass and architectural processed glass products
Its Auto Glass commands a Market Share of 43% & Float Glass enjoys 31% market share in India
Major Clients are – Maruti Suzuki India, Reva Motors, Ford India, Volvo India, General
Motors, Mahindra & Mahindra etc.
AIS was rated “Best Indian Company in Glass & Ceramic Category” By Dun & Bradstreet
AIS was given a “Superbrand” status in 2006-07
AIS was given Gold Medal by Deming Prize Committee in 2007
Abstract
This case deal with compensation plan of Asahi India Glass
Earlier Scenario
Compensation was given to the employees or sales people totally based on performance
Straight Commission was given on performance It results in inflated pay cheques to the field sales force , when sales
were at peak
Present Scenario Revised Pay: 70% of Basic Salary + 30% (Point based commission) Greater Job Security than in past Flat & Incremental Commission structure for addition sales
Problem With The Previous Compensation Plan
Straight Compensation Plan – Involves Risks
Focus on Job Loyalty, Not Organization Loyalty
Inequitable Compensation Plan
Recession Effect - Job Insecurity
PLAN
‘B’
For Company
Attract the quality sales people
Equitable Compensation Plan
Motivate Under-performer
It can increase productivity level of
existing sales force
Support Long Term Relationship
Operating cost will be higher
Complex Mechanism in
compensation
It will hit the bottom line during
recession
Advantages Disadvantages
Benefits For Individuals
Financial Security
For Under-Performer: Job Security
For Over Achiever: Incremental Commission & Motivation for higher targets
For Average Performer
Best Time To Launch New Plan
In The Beginning of
The Year At The Down Season Time
Recommendations
Non Financial Compensation
Promotion
Fringe benefits
Sales Contest
Should be in accordance with Competitor's Compensation Plan
Conclusion
Asahi Glass was facing problem with the existing compensation plan
so they introduced a revised compensation plan
We have analyzed the case study and found that this compensation
plan will be beneficial for the both organization as well as the sales
force.
Thank You