Mhr Individual Case Study
1. You are the consultant. Clark has asked you to submit a proposal for a PS plan for Maple Leaf Shoes. You wonder about the appropriateness of such an incentive system for Maple Leaf Shoes, but you promised to look into it. What will you tell Robert Clark?
A profit sharing plan is a plan that gives employees a share in the profits of the company. Each employee receives a percentage of those profits based on the company 's earnings. The textbook defines profit sharing plan as “A system whereby an employer pays compensation or benefits to employees, usually on an annual basis, in addition to their regular wage, on the basis of the profits of the company” (Page 352). This plan can either be a really great plan or a terrible plan because it ultimately depends on the profits earned by the company in a given time period. Let’s say for a certain month the company is doing really great in profits and business is good than the employees will be really happy and earn a lot more than they’ve earned in the past, But if the company fails to generate a lot of profit the next year than wages for the employees will decrease and be more lower than it was before which will make employees upset and earn less money. The idea of imposing a PS plan is so that employees are motivated to work hard so that they can make money as possible and the company can be profitable. It’s a drive to get employees to help the business become successful so ultimately it’s a win-win situation between the employees and company. I would tell Robert Clark to continue with his plans on proposing this idea of making a PS plan. This PS plan will be great for this Maple Shoes Company because it will motivate employees to work hard and become more productive in their work field so that Maple Shoes can make as much money as possible and results to a good company image. 2. Do you see a possibility of convincing Maple Leaf Shoes ' unions to buy in on a PS plan?
I believe the union members will not buy into
A profit sharing plan is a plan that gives employees a share in the profits of the company. Each employee receives a percentage of those profits based on the company 's earnings. The textbook defines profit sharing plan as “A system whereby an employer pays compensation or benefits to employees, usually on an annual basis, in addition to their regular wage, on the basis of the profits of the company” (Page 352). This plan can either be a really great plan or a terrible plan because it ultimately depends on the profits earned by the company in a given time period. Let’s say for a certain month the company is doing really great in profits and business is good than the employees will be really happy and earn a lot more than they’ve earned in the past, But if the company fails to generate a lot of profit the next year than wages for the employees will decrease and be more lower than it was before which will make employees upset and earn less money. The idea of imposing a PS plan is so that employees are motivated to work hard so that they can make money as possible and the company can be profitable. It’s a drive to get employees to help the business become successful so ultimately it’s a win-win situation between the employees and company. I would tell Robert Clark to continue with his plans on proposing this idea of making a PS plan. This PS plan will be great for this Maple Shoes Company because it will motivate employees to work hard and become more productive in their work field so that Maple Shoes can make as much money as possible and results to a good company image. 2. Do you see a possibility of convincing Maple Leaf Shoes ' unions to buy in on a PS plan?
I believe the union members will not buy into
Cited: List Schwind, H. F., Das, H., & Wagar, T. H. (2010). Canadian human resource management: a strategic approach (9th ed.). Whitby, Ont.: McGraw-Hill Ryerson.