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Pay for Performance and Financial Incentives (A): Money and Motivation @ Panache Fashions

ET Cases, 3 pages
AUTHOR(S) : Syed Abdul Samad and Dr. Nagendra V. Chowdary

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Pay for Performance and Financial Incentives (A): Money and Motivation @ Panache Fashions


Vandana was about to complete her last session on the importance of pay for performance measures, when one of her students Srinivas asked her an intriguing  question that was not highlighted during the last three sessions. Srinivas asked Vandana, “Ma’am, we have been witnessing a meteoric rise in start-up activity in India during the last 3 years as the momentum and ecosystems have become very encouraging. How do you think the pay for performance measures pan out in the start-ups?” Vandana was equally intrigued as was the class. She wrapped the session with a promise to hold a discussion on the topic......................


Exhibit I: Employees and Hierarchy at Panache

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Product code: HRM-2-0038(a), HRM-2-0038(a)A


This caselet, first in a series of six caselets, is meant to understand the role of money and motivation in structuring an incentive plan. In the conclave on 'Pay-for- Performance in Start-ups' arranged by Professor Vandana at Access Business School, six start-ups share their experiences (challenges) in terms of incentivizing their employees. Panache Fashions India Limited's (Panache) owner Muthukumar Rajasekaran (Muthu) shares the problem of his demotivated workers at the conclave. While Muthu considered that he had provided better salaries and facilities for his staff, when compared to other textile manufacturers in the region, his staff (especially the shop floor workers who constitute a lion's share of the total workforce) believes otherwise. In the backdrop of the challenges faced by Muthu, this case study introduces participants/students to the various motivational theories that would help understand the factors that trigger employee motivation.

Pedagogical Objectives

  • To understand the role of money and motivation in structuring an incentive plan and to examine how insights from various motivation theories can be used to structure an incentive plan
  • To analyze the problem faced by the workers at Panache Fashions India Limited and discuss about the probable incentive plans to motivate them

Case Positioning and Setting

This caselet can be used in either MBA or Executive MBA or Executive Development Programs, for the following module/topic in the Human Resource Management course:

  • Money and Motivation - To understand the various motivational theories that help employers understand their employee needs, motivating and demotivating factors and help in deciding their pay and incentives

This Case Pack Includes:
- Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)

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