Mhr Individual Case Study Essay

The textbook defines profit sharing blueprint 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 clams of the caller (Page 352). This plan poop either be a really keen plan or a terrible plan because it ultimately depends on the profits gathered by the company in a given eon period.Lets say for a certain month the company is doing really great in profits and business is good than the employees lead be really happy and earn a lot more than theyve earned in the past, But if the company fails to show a lot of profit the side by side(p) year than wages for the employees will decrease and be more lower than it was before which will support employees upset and earn less silver. The idea of solemn a PS plan is so that employees are motivated to construct hard so that they can make money as possible and the company can be profitable.Its a drive to get employees to help the business become successful so ultimately its a win-win agency 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 seat Company because it will motivate employees to work hard and become more productive in their work field so that Maple place 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 the PS incentive plan because it ultimately depends on how much the company makes over a certain period of time. There is always a possibility that there will be no profits or low profits during a period of time. The amount of profit Maple Leaf Shoe is making is highly unstable simply one moment you might be getting a lot of money and another moment you will be getting paid at a lower place what you used to get paid. This plan has a lot of ups and downs but its really like gambling because you can win a lot of money and lose a lot also. I can see how this plan might be able to increase production of employees because it will motivate employees to work harder to help the company earn more profits. But sometimes the employees will do everything their supposed to do and maybe the company doesnt make profits because of other reasons like competitions or other factors that employees cant pull strings.Also Maple Leaf Shoe production costs are steadily increasing which pith they need to make a lot more money to cover their high costs. There is a low possibility that Union will accord this PS plan because there is too much gamble and risk. 3. What other incentive plans are suitable for Maple Leaf Shoes? The three incentive plans that will be more beneficial to the Maple Leaf Shoes company is production incentive plans, employee stocks ownership plans (ESOPs), and Scanlon plan.Production incentive pla ns are plans that allow groups of workers of workers to receive bonuses for exceed predetermined levels of output (Page 351). This will motivate employees to work harder and be more productive than they were before. Employees would want to work more than there supposed to so that they earn more money and the company benefits because it will have a lot of employees that will do a lot more for them that will ultimately generate more profits.Employee stocks ownership plans (ESOPs) is a plan that gives employees ownership of the company and gives them voting rights within the company. This is advantageous because it allows employees to feel that they are part of the company instead of being related to as an asset to the company. Employees would want to work for a company that they represent and have ownership in because they will treat the company as their own and do whatever it takes to get the company more profits. The two plans previous are all determined on factors that employees cant control with is the profit the company makes.Scanlon plans as stated in the textbook is An incentive plan developed by Joseph Scanlon that has as its general objective the reduction of moil costs through increased efficiency and the sharing of resultant savings among workers (Page 352). This plan is great for employees because it rewards them based on the labour costs, a factor they can control. Works Cited List Schwind, H. F. , Das, H. , amp Wagar, T. H. (2010). Canadian human resource management a strategic approach (9th ed. ). Whitby, Ont. McGraw-Hill Ryerson.