In October 2014, Hari Krishna Exports, a US$975 million Indian diamond manufacturing company, made international news when it gave 1,268 employees a generous performance incentive of approximately US$5,700. This was part of a radical loyalty program the company had started in 2011. However, with the market dynamics of the diamond industry constantly changing, giving such performance incentives on a yearly basis would be a great challenge. Price fluctuations at every step of the process—from procurement, to polishing, to the retail markets of the diamonds—created inherent risk in the industry. Intermediaries such as diamond polishers, in comparison to miners, had less control over the upstream channels of diamond procurement, which usually comprised exploration and the mining of diamonds. What would be the ultimate engagement level of the employees? Would such performance benefits for retaining talented employees be sustainable over the long run for an export house?
In October 2014, Hari Krishna Exports, a US$975 million Indian diamond manufacturing company, made international news when it gave 1,268 employees a generous performance incentive of approximately US$5,700. This was part of a radical loyalty program the company had started in 2011. However, with the market dynamics of the diamond industry constantly changing, giving such performance incentives on a yearly basis would be a great challenge. Price fluctuations at every step of the process-from procurement, to polishing, to the retail markets of the diamonds-created inherent risk in the industry. Intermediaries such as diamond polishers, in comparison to miners, had less control over the upstream channels of diamond procurement, which usually comprised exploration and the mining of diamonds. What would be the ultimate engagement level of the employees? Would such performance benefits for retaining talented employees be sustainable over the long run for an export house?
The case documents the evolution of an eye care hospital promoted by not-for profit organization located in Mandvi, District-Surat, close to the tribal community of Gujarat state, India. In a short span of five years (as of 2016), the trust has evolved as a community hospital. The value proposition of the trust is a portfolio of activities, which includes awareness by education, prevention of eye care diseases through eye screening camps, treatment, and rehabilitation on need basis and addressing direct and indirect healthcare needs of the community. The managerial challenge before the board of trustees is to carefully balance (a) The purpose for which the trust was created, (b) the gap between the ground realities and the need in the relevant tribal community (c) the accomplishments of the eye hospital so far.