Asahi India Glass – A Case Study

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

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

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

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

PLAN

‘B’

For Company

Attract the quality sales people

Equitable Compensation Plan

Motivate Under-performer

It can increase productivity level of

existing sales force

Support Long Term Relationship

Operating cost will be higher

Complex Mechanism in

compensation

It will hit the bottom line during

recession

Advantages Disadvantages

Benefits For Individuals

Financial Security

For Under-Performer: Job Security

For Over Achiever: Incremental Commission & Motivation for higher targets

For Average Performer

Best Time To Launch New Plan

In The Beginning of

The Year At The Down Season Time

Recommendations

Non Financial Compensation

Promotion

Fringe benefits

Sales Contest

Should be in accordance with Competitor's Compensation Plan

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.

Thank You