EMIRATES GLASS

MEMORANDUM

To : B. Chopra
Managing Director

From : V. K. Paul
Public Relations Officer

Re : A1/145

Date : 25 March 2008

Subject : Report on the Reasons of Dissatisfaction with the
New Bonus and Incentive Scheme


This has reference to your memo. No A7/432 dated 20 March
2008. As directed, I am presenting the results of my analysis of
the causes of employees complaint against the new bonus and
incentive scheme to be implemented w.e.f. 2 June 2008. The
analysis and conclusions presented in the report are based on the
data collected by
distributing questionnaires to all employees.
interviewing two employees from each department.

DISCUSSION

The Analysis clearly indicates that 60% of the companies
employees are not satisfied with the new incentive scheme.
Among these dissatisfied employees, 50% are from the Sales
Department, 30% from the Production Department and 20%
from the Marketing Department. The 40% of the total employees
who are in acceptance with the scheme are those from the
Purchase and Accounts Department of the company.

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According to the analysis, the most important reason for the
dissatisfaction is that of the scheme being uniformly applicable
to all employees. The employees of the Sales, Production and
Marketing Departments expect to get relatively more incentives
than others. Their complaint is justified by the fact that
employees from the Sales and Marketing Department are more
loaded with work. They have to do a lot of travelling to boost the
companies' sales and marketing efforts. The new scheme also
places high target of sales of Dhs.100000 to be achieved. This
huge target is receiving a lot of criticism from the employees.
They feel that the older target of Dhs.70000 was high enough to
pursue. The new target will impose a lot of work load on them
which they find hard to sustain. The Production Department
employees have to work in the adverse conditions of the factory.
Moreover, the scheme suggests to increase the working hours
per day from eight hours to ten hours. This suggestion has not
been accepted by the employees. They claim that their work has
been very flexible and whenever the work is more, most of the
employees do overtime to keep up with the work pace.
Increasing the timings will make it binding for them to stay till
late in office with which they are not in acceptance.


SUMMARY AND CONLCUSION

The employees' discontent with the new bonus and incentive
scheme is based on the genuine reasons which need to be
addressed carefully.
Write 3 concluding points based on the causes mentioned in
the discussion.
The management must take suitable corrective actions to
favourably respond to the employees and to retain their faith in
the company.

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RECOMMENDATIONS

Following are the recommendations based on the analysis I have
made.
1. The company need to act in a way to win the goodwill of
the employees and to get them motivated to work
effectively and efficiently.
2. The uniformity of the scheme could be revised and benefits
could be given to the employees according to the work they
do, their performance and output and the working
conditions in which they perform their tasks.
3. The new targets need to be scrutinized so that they are
realistic and achievable. (Can explain little more.)
4. It is suggested not to officially increase the working hours
per day. (Can explain little more.)


Copy to : 1. Govind Kumar, Chief Executive Officer
2. K.K. Sharma, Manager, HRD

Encl : 1. Copy of memo no. A5/432
2. Summary of the data collected for the analysis
3. Letter of complaint from the Leader of the
Employees Union