Course: Compensation Management

Master Technical Corporation (MTC) MTC is having 40-years of market presence in automobile parts making (manufacturing sector). MTC have reached to a level at which they are leading market and considered as trendsetter of automated parts making / plant operations. Almost 15 years before, they have replaced 80% of their human resource with robots and automated machines based on artificial intelligence and controlled by computerized operations.

The overall philosophical standing and management approach of MTC is declined towards non-human attributes. The operational decisions are critically based on machine language / computational manner. To meet any increase in demand or design changes in production, MTC plant / machines / robots are programmed by the aid of computer based application / software. Even MTCs software and computer applications are based on decisions, which are backed by artificial intelligence modules. The management practices, production policies and procedures, quality of production, timely provision of products and orders fulfillment are considered best in the market.

our years earlier, MTC diversify their portfolio by initiating an insurance company (service sector). The top managements interest and experience of several years in automated plant operations led them to make and approach their new insurance company in the same manner. Even, they invested a lot with respect of having the best office building, equipment, automated attendance module, surveillance and connectivity for offering insurance services round the clock. Following to MTC approach and management style the compensation system is designed with well-paid / monetary based pay structures The approach of automated operations and artificial intelligence based decisions both are visible in this newly established insurance company. They derived vison and mission with the same pattern of philosophy of their plant operations

Year 2021, is the fifth year of MTC insurance company, but still employees of insurance company do not stay more than SIX month and professionals avoid taking jobs due to pressure, which is created by companys computer based demands for results / employee performance. Employees of insurance company are mostly terminated / laid off on the computational decisions of artificial intelligence, i.e., not accepting the control of machines / artificial intelligence, not meeting computer assigned targets, not following system generated objectives, ignoring computer based business plans, attendance conditions, failing to meet daily creativity levels, unmet performance standards and computer given deadlines. However, the management of insurance company provides constructive feedback, they design jobs for gaining employees attention, plenty of resources and management usually support employees.

As a compensation expert, answer the following (briefly / point to point);

1. The MTC approach of designing organizational structure for their insurance company was correct or not? (1-marks)

2. Following to your given answer in Question-1, explain why? (4-marks)

3. In development phase of any company, what are the principal activities through which you can decide companys overall approach? (5-marks)

4. Which component of compensation system was not fully considered by the management in insurance company? (1-marks)

5. Following to your given answer in Question-4, which TWO critically / absolutely missing dimensions you would suggest for compensation system of insurance company? (4-marks)

6. Which technical features would you consider in developing a unique compensation characteristic of an organization? (5-marks)