Page 37 - DMGT519_Conflict Management and Negotiation Skills

Unit 2: Nature of Conflict

Notes
company on 11-10-2000. The management also agreed to take back some of the terminated
employees and accepted an undertaking from the union on behalf of all the striking
employees.
Part B: Negotiation

Negotiated Settlement and Details of the Incentive scheme
The details of the negotiated settlement are as follows:
1. Incentive Scheme
(Shop Floor Experience - Maruti Udyog Ltd.)

2. Productivity Performance & Reward System (PPRS) - A Shop floor Experience
Three Parts of ‘PPRS’:
(i) Business Performance
(a) Ratio of ‘Profit Before Tax/Net sales’

(ii) Collective Performance
(a) Direct Labour Productivity
(b) Spares & Accessories Turnover Ratio
(c) Quality Improvement

(iii) Individual Performance
3. Attendance Percentage
4. Proper Leave Planning
5. Productivity Performance & Reward System – A Shop floor Experience

6. Company Performance 50%
7. Collective Performance 32%
8. Individual Performance 20%
9. Productivity Performance & Reward System - A shop floor experience

Part - 1 – Business Performance:
(i) Ratio of ‘Profit Before Tax/ Net Sales’
(ii) It will be rounded-off to nearest integer
(iii) Monthly Payment

10. Productivity Performance & Reward System – A Shop floor Experience
Part - 2 - Collective Performance
(i) Direct Labour Productivity
(ii) Labour Productivity = Daily FC OK for month/N

(iii) Reward at base level is Rs. XYZ/-
(iv) Reward payment above base level for (+/-). 01%=(+/-Rs YY)
(v) Minimum payment could be ZERO
Contd...

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