Asahi India Glass (AIS) - A Case Study

9,327 views

Published on

Asahi India Glass (AIS) - A Case Study

Published in: Business
  • Be the first to comment

Asahi India Glass (AIS) - A Case Study

  1. 1. Asahi India Glass – A Case Study
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. Problem With The Previous Compensation Plan  Straight Compensation Plan – Involves Risks  Focus on Job Loyalty, Not Organization Loyalty PLAN  Inequitable Compensation Plan  Recession Effect - Job Insecurity ‘B’
  6. 6. For Company Advantages Disadvantages  Attract the quality sales people  Operating cost will be higher  Equitable Compensation Plan  Complex Mechanism in  Motivate Under-performer compensation  It can increase productivity level of  It will hit the bottom line during existing sales force recession  Support Long Term Relationship
  7. 7. Benefits For Individuals  Financial Security  For Under-Performer: Job Security  For Over Achiever: Incremental Commission & Motivation for higher targets  For Average Performer
  8. 8. Best Time To Launch New Plan In The Beginning of The Year At The Down Season Time
  9. 9. Recommendations  Non Financial Compensation  Promotion  Fringe benefits  Sales Contest  Should be in accordance with Competitor's Compensation Plan
  10. 10. 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.
  11. 11. Thank You

×