“The board of directors wants to do away with the current unit system. However, I will argue for
continuing it in its current form
, as it has worked for us.”
-Director of the National Institute of
Management – central India campus
In May 2008, faculty members were nervous about the
quarterly board of directors meeting, where the
existing unit-based work measuremen
t and reward system was to be
reviewed. The nervousness was
understandable, as most of the faculty members at th
e National Institute of Ma
nagement – Central India
campus (NIM (CI campus)) were highly appreciative
of the transparent, unit-based work measurement
system. It specified a range in te
rms of a minimum number of units beyond which the faculty members
were monetarily compensated and a maximum number
of units above which faculty members were not
compensated.
This system had been in operation for two years. Ho
wever, based on the units earned by faculty members
for the year 2007-2008, the board of directors felt that
the minimum work load specified was too low.
Besides, there were certain activities where the faculty members had earned a number of units that was
beyond what the board of directors believed was “difficult” to achieve.
The matter was further complicated by the fact that
this system was operational in two out its three
campuses and there was a large discrepancy between the activity-wise units earned by faculty members at
these campuses.
In a recent faculty meeting, the director of NIM
(CI campus), who like a strate
gic business unit head had
the responsibility for the growth and profitability of
NIM (CI campus), had indi
cated that the board of
directors might do away with the current unit system.
Hence, the quarterly board of directors meeting had
assumed unusual significance and had caused significan
t anxiety among faculty members. Given that many
faculty members were opposed to any drastic upward revision of the current system, the decision of the
board of directors had the potential to trigger major diss
atisfaction, leading to fa
culty turnover. As things
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