Plastco Packaging Compensation Case - 3884 Words

st Plastco Packaging Case Prepared by: Richard Marx Spring 201_ Table of Contents Table of Contents 2 Introduction and Synopsis 3 Background Information/ Current Operating Environment 4 Primary Problems 7 Secondary Problems 9 Alternatives/ Solutions 13 Recommendations 18 Implementation Plan 20 Appendix A - Plastco Departmental Chart 23 Endnotes 24 Bibliography 25 Case Study Analysis Form 26 Introduction and Synopsis This report introduces us to the Plastco Packaging Company, its current operating environment, and the many problems it faces. The report proceeds to identify solutions, and weighs their costs and†¦show more content†¦Supervisors are quite controlling of their subordinates actions. vi. The reward system (compensation system) at Plastco is an extrinsic economic reward system directly linked to hours worked. In addition, the company provides 20% indirect compensation in the form of benefits to company employees. Benefits increase with seniority. Task Environment/Domain Plastco’s narrow domain is defined by the variety of plastic bags it makes. Key elements of the company’s task environment include its customers, competitors, suppliers and regulatory agencies it must adhere to, i.e. the Ministry of Labour and the Provincial Human Rights Commission. Competitors, Employees, Culture Values HR Function Competitors: Plastco must contend with an emerging competitor who can produce better quality bags for less. Plastco is losing market share to this competitor. Employees: the Company’s non-management employees are unionized and are divided into two departments; the bag-making and maintenance departments. The Maintenance Department staff ensures the bag-making machines are regularly serviced and kept in proper working order. It is the bag-making department where Plastco is experiencing poor employee relations coupled with low job satisfaction, motivation, morale and significant turnover of its female employees. This department consists of: †¢ 1 bag-making supervisor at the top,