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Workforce Optimization at Novatech

Novatech is a Delhi-based tech startup that has experienced 300% revenue growth in the past two years. They now employ 200 people across three cities but lack expertise in management, leading to issues in HR and compensation. The current salary system is traditional with fixed divisional salaries and overtime bonuses. Novatech aims to improve productivity and job satisfaction while ensuring fair compensation. A new compensation mechanism is proposed that calculates penalties for divisions with employee numbers outside the optimal range of 45-55, and bonuses for high-scoring employees, increasing productivity from 7866 to 9655.

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Zenish Khumujam
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42 views9 pages

Workforce Optimization at Novatech

Novatech is a Delhi-based tech startup that has experienced 300% revenue growth in the past two years. They now employ 200 people across three cities but lack expertise in management, leading to issues in HR and compensation. The current salary system is traditional with fixed divisional salaries and overtime bonuses. Novatech aims to improve productivity and job satisfaction while ensuring fair compensation. A new compensation mechanism is proposed that calculates penalties for divisions with employee numbers outside the optimal range of 45-55, and bonuses for high-scoring employees, increasing productivity from 7866 to 9655.

Uploaded by

Zenish Khumujam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Optimising workforce at

Novatech
Group - 3
Introduction:
● Novatech a delhi based tech startup , founded by Amy deb and Jonathan
Kiri
● Revenue Growth of 300 % in 2 years
● Now employs 200 people
● Headquartered in Delhi
● Expanded in two cities - Bangalore and Pune
● Lack of expertise in management gave rise to various issues
● HR management - Jonathan
● Financial issues arose in salary and compensation payment
Current method of compensation and salary payment
● The company uses a traditional method for salary payment
● The salaries are fixed division wise
● The only variable is overtime working hours
● When worked extra hours they are eligible for bonus according to the
extra working hours
Problem statement :
● How do we ensure a certain level of productivity ?
● How to improve the individual job satisfaction ?
● How do we deal with fair compensation among employees ??
● Each division cannot have employees more than 55, or less than 45 to
ensure maximum productivity
● Penalty of 10 occur if employees > 55
● Penalty of 20 occur if employees < 45
● Penalty of 30 occur if employees < 40
● Division 1 cannot have employees from 101 to 200 because they are new
employees
Solution
1. Extract values for each category using Hlookup Function
2. Sum up the category values for all 200 of the employees
3. Calculate the number of all 3 types of penalties

4. Calculate the productivity cost of each penalty


Solution :
Objective Function
Productivity has increased from
7866
to
9655

Employees with quality of


work score 10 , will get
bonus according to the new
compensation mechanism.

Total number of Bonuses


paid = 40
Thank You

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