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 â€Å"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 mor e 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 u nion 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 but one moment you might be getting a lot of money and another moment you will be getting paid under what you used to get paid.This plan has a lot of ups and downs but it’s 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 doesn’t make profits because of other reasons like competitions or other factors that employees can’t control.Also Maple Leaf Shoe production costs are steadily in creasing which means they need to make a lot more money to cover their high costs. There is a low possibility that Union will accept 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 plans are plans that â€Å"allow groups of workers of workers to receive bonuses for exceeding 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 can’t control with is the profit the company makes.Scanlon plans as stated in the textbook is â€Å"An incentive plan developed by Joseph Scanlon that has as its general objective the reduction of labour 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. , & Wagar, T. H. (2010). Canadian human resource managemen t: a strategic approach (9th ed. ). Whitby, Ont. : McGraw-Hill Ryerson.