Changing Compensation and Benefits Design in an Indian Tire Manufacturing Company

Abstract

This study documents the human resources, compensation and benefit practices and policies adopted in a typical family-owned tire manufacturing company in India. This article is a case study of a company where the lack of proper policies resulted in several costly lockouts. Thus, this study highlights the importance of well-structured human resources policies. The study presents detailed data on the compensation and benefits policies from 1990 to early 2011. It attempts to trace the progression of the firm’s policies, which are still not mature with respect to industry standards among multinational tire manufacturers. Much of the information in this article is based on detailed interviews with top managers at the firm. The interview material offers a rare look at the inner workings of the family-owned business that was eventually acquired by a large German corporation.