Compensation and Benefits

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Problem Statement – You have been requested to give an “adjustment” to 28 Machine Operators between 10-15 years of service. You have researched the root cause of the problem but have not yet presented this to the Plant Manager or the leadership team. In your team, answer the following questions:

6) How can a pay for performance plan help in this situation? What type of plan would work to address this situation and why? 7) What are the key challenges that you faced working in a team and sharing one grade? As you think about your challenges as a team, what are the implications in the workplace when companies use team-based pay incentives in general (not for this specific case)?

8) Would you consider using a team-based incentive pay program for the Machine Operators? Why or Why not?

9) What potential solutions would you recommend to the Plant Manager regarding making any adjustments to the 28 Machine Operators between 10-15 years of service now that you have thought through many of the challenges?

10) What are the implications to the business for each solution/recommendation?

Sample Solution

Today Outdoors PLC a major competitor in producing high end garden furniture and related items reporting their full year financial results for 2016. This is an independent financial assessment of Outdoors Plc it was conducted to establish the specific and current finance position and culture that exists in one of the largest outdoor furniture producing organisations in the market. The full scope of the report will investigate the five-year period from 2012 to 2016, between the major areas of profitability, liquidity, investment, efficiency and gearing.
This report will also review three potential investment options for Outdoors PLC 1: Expand blossoming retail outlets to include all stock, 2: Full deployment to internet sales and 3: Produce Greenhouses and Conservatories.
The information found in this report can be evaluated and used towards the investment programme in the 3 fields open consider investment also the report can be used for the future strategic direction of the company.
All figures in the below report are stated in Great British Pound (£).

Highlights

Outdoor PLC has had a profitable 2016 with five-year highs in: A financial ratio is a relationship between two quantities on a company’s financial statements, which is derived by dividing one quantity by another. The purpose of using ratios is to reduce the amount of data to a workable form and to make it more meaningful. (Niall Lothian & Prof. John Small, 1991)

• Trading Profit Margin @ 7.8% (+0.3% YOY)=Trading Profit/Sales
• Earnings Per Share @ £15.65 (+ £2.05 YOY)=Total Earnings/Outstanding Shares

• Dividends Per Share @ £5.90 (+ £0.5 YOY)=Dividends/Number of Shares

• Net Assets Per Share @ £102.1 (+ £12.88 YOY)=Net Asset/No of Shares Outstanding
• Working Capital Turnover @ 8.6 (+ 0.6 YOY)=Current Assets/Current Liabilities

Profitability

Trading profit is equivalent to earnings from operations. Thus, it does not include any financing-related income or expenses, nor does it include any gains or losses on the sale of assets. This is a good indicator of the ability of the core operations of a business to generate a profit. (Steven, 2018) The method is of limited use when projects have differing cash flow patterns. These patterns may be important to the company since they will affect the timing and availability of funds. With multi-period capitol rationing, it is possible that the project with the highest Profitability Index is the slowest in generating returns (Paul, Lydon)

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