Douglas College Compensation Management at Reynolds Plastic Products Case Study I need case study in 2 pages on the following topic below. All the requirements are attached and the topic from where you have to make case study is attached too.Thanks INCIDENT 9-1
COMPENSATION MANAGEMENT AT REYNOLDS PLASTIC PRODUCTS
The family-owned Reynolds Plastic Products Company in London, Ontario, was recently
purchased by a much larger company International Plastics Limited.
When the Human Resources Director of International Plastics, Hans Himmelman, looked at
Reynolds Plastic’s compensation policies, he became concerned that some of them were
questionable and, in some cases, actually seemed to violate the law. When he asked the Plant
Manager, an engineer who also acted as Human Resource Manager, how pay rates were
determined, the Plant Manager explained that he would ask applicants what they had earned in
their previous job and just add 25 or 50 cents per hour to this amount, depending on their job
experience.
To make matters worse, two recently-hired ethnic minority machinists complained that they
were paid less for the same work than their non-minority colleagues. The Machine Shop
Supervisor disputed their claim, asserting that the non-minority employees had more
experience and deserved higher pay.
Himmelman also discovered that productivity in the subsidiary (Reynolds Plastic) was lower
than in other plants of International Plastics.
A human resources consultant was hired to assess the compensation system of the Reynolds
Plastic subsidiary. The key points of her report are summarized below:
1. Executives in the past have received an annual bonus determined by the owner at his
discretion.
2. Wages for hourly employees ranged from $16 per hour for employees during their
probationary period to $28 per hour for the more skilled or experienced ones.
3. The amount of overtime paid by Reynolds was very modest. Overtime was paid for all
hours worked over 180 per month.
4. The wage rates for different workers varied widely, even on the same job. Those
employees who were not visible minorities received approximately 18 percent more
than those workers who were minorities.
5. Visible minority employees were paid 10 to 20 percent less in all job categories.
6. On highly technical jobs, the company paid a rate of 20 percent above the prevailing
wage rate for these jobs. All other jobs were paid an average of 15 percent below the
prevailing rate.
7. Production workers were eligible for a $200 draw at the end of each month if there
were no accidents during the month.
1 Contd./………………
………………../contd.
8. Sales personnel were paid a commission, and received a $200 bonus for every new
customer they brought to the company.
9. Whenever sales went up 10 percent, all the hourly employees got a day off with pay, or
they could work one day at the double-time rate.
10. Labour turnover averaged a modest 12 percent (per year). However, in technical jobs,
turnover was less than 2%, while in non-technical jobs turnover was nearly 20 percent.
11. Absenteeism followed the same pattern (as in 10. above).
QUESTIONS
1. What laws were probably being violated?
2. What problems do you see with the incentives for:- (a) executives? (b) production
workers? (c) salespeople? and (d) hourly employees?
3. Himmelman read about new approaches to pay policies, such as variable pay and profitsharing, and he wondered whether either one could be a suitable solution for the
Reynolds subsidiary, especially profit-sharing to increase low productivity. How would
you advise him?
4. Develop a step-by-step plan of actions you would take, and the order in which you
would undertake them, if you were made Human Resource Director of the Reynolds
subsidiary.
______________________________
(Source: Schwind et al, ‘Canadian Human Resource Management: A Strategic Approach’
(12th edn), McGraw-Hill (2019), Ch.9, p.299)
DRC / Mar.2020
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OMM 281 > Assignments > Case Essay
7 Winter
Case
Essay
Submit Assignment
cements
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Due 9 Apr by 10:30 Points 100
Submitting a file upload
Available 29 Mar at 8:00 – 9 Apr at 10:30 11 days
nen
Read the document ‘HR.Pay.Caselncident.Reynolds Plastics’ located in the
Modules section under ‘Week Thirteen – Course Material!
Then write an essay that answers the questions at the end of the
document. Your essay should be no longer than two pages, using double
line-spacing and a font size of 12 or 11.
It is not mandatory to refer to textbook models and theories, etc.
However, if you DO quote, refer to, or summarize any published work
including the course textbook, then the usual rules about
citation/referencing (and avoiding plagiarism) WILL apply.
This assignment is an individual assignment, and partly replaces the in-
class presentations for the Team Project. It will be worth 8% of your
course grade.
TIL
0
<
8:39 0
Media
S Ask a new tion-Sh
Essay
{ t
→
Ims.alexandercollege.ca/cour ☆
:
OMM 281 > Assignments > Case Essay
7 Winter
Case
Essay
Submit Assignment
cements
-S
Due 9 Apr by 10:30 Points 100
Submitting a file upload
Available 29 Mar at 8:00 – 9 Apr at 10:30 11 days
nen
Read the document ‘HR.Pay.Caselncident.Reynolds Plastics’ located in the
Modules section under ‘Week Thirteen – Course Material!
Then write an essay that answers the questions at the end of the
document. Your essay should be no longer than two pages, using double
line-spacing and a font size of 12 or 11.
It is not mandatory to refer to textbook models and theories, etc.
However, if you DO quote, refer to, or summarize any published work
including the course textbook, then the usual rules about
citation/referencing (and avoiding plagiarism) WILL apply.
This assignment is an individual assignment, and partly replaces the in-
class presentations for the Team Project. It will be worth 8% of your
course grade.
TIL
0
<
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