Individual Case Study 2.docx

3 Pages
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Department
Global Management Studies
Course Code
GMS 200
Professor
Tsogbadral Galaabaatar

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Individual Case Study #2 Question 1 According to the textbook, profit sharing plan is “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” (351) This plan can either go extremely well, or can be very disappointing. Since Maple Leaf Shoes Ltd. have been facing many issues lately, I would tell Robert Clarke to introduce the PS plan in hopes of it becoming successful. The PS plan will help motivate the employees to work hard and help increase productivity. Also, by implement the plan, the company will make money which creates a more "supportive and satisfying working environment". (352) Question 2 I personally do not think the union will buy into a PS plan because there is too much risk involved. The plans incentives are supposed to make employees work harder and help the company make higher profits. However, even if the employees are doing everything they are being told to do, there is a possibility that other factors can cause the company to have profits such as a recession or other competitors. (351) Another reason why the union will not give in is because production costs for the company have been rising slowly but steadily (363) meaning Maple Leaf Shoes must make a substantial amount of money in order to pay their costs. Since there are many risks involved, I do not believe the union will buy into a PS plan. Question 3 Three other incentive plans that are suitable for Maple Leaf Shoes are: 1. Employee Stock Ownership Plans (ESOPs
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