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Asahi India Glass A Case Study

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Presented By

Arti KumariDebarati Sen GuptaMonalisa GhoshManeet Kumar

Mani Shankar SonkushreMan Mohan Anand2009-11 Batch

M.S.Ramaiah Management Institute, Bangalore

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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% marketshare 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

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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

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Problem With The Previous Compensation Plan

Straight Compensation Plan Involves Risks

Focus on Job Loyalty, Not Organization Loyalty

Inequitable Compensation Plan

Recession Effect - Job Insecurity

PLANB

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For Company

Attract the quality sales people Equitable Compensation Plan Motivate Under-performer

It can increase productivity level ofexisting sales force

Support Long Term Relationship

Operating cost will be higher Complex Mechanism in

compensation

It will hit the bottom line duringrecession

Advantages Disadvantages

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Benefits For Individuals

Financial Security

For Under-Performer: Job Security

For Over Achiever: Incremental Commission & Motivation for higher targets

For Average Performer

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Best Time To Launch New Plan

In TheBeginning of

The Year At The DownSeason Time

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Recommendations

Non Financial Compensation

Promotion Fringe benefits Sales Contest

Should be in accordance with Competitor's Compensation Plan

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Conclusion

Asahi Glass was facing problem with the existing compensation planso they introduced a revised compensation plan

We have analyzed the case study and found that this compensationplan will be beneficial for the both organization as well as the salesforce.

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ThankYou