Case Name :      Tata Motors: Compensation Restructuring

Authors :           Zubin R. Mulla, Vineet Soni, Tanushree Mishra

Source :             Ivey Publishing

Case ID :            W15144

Discipline :        Organizational Behavior

Case Length :    10 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The head of Performance and Rewards at Tata Motors Limited (TML) was reviewing the reports before him and deliberating their implications. The company had just embarked on a major initiative to identify employees’ concerns and the results were not good. Employees across all levels, including senior leadership, were unclear about their compensation. The employees were not the only ones who were puzzled; even the recruitment team at TML had no clear basis for determining and comparing the salaries of new recruits. It was obvious that something needed to be done. Should it be a major restructuring of the compensation or could the matter be solved by simply educating the employees? Should the company remove some of the components from its compensation structure and make it simpler? If so, which components could be dropped and which should be retained?