Compensation and Benefits in PAC Resources Inc - Research Paper Example

Compensation and Benefits of the of the Question Broadbanding can be regarded as a mechanism through which large number of compensation systems is reduced to design a much simpler system. This technique was incorporated in PAC Resources Inc., through which 14 grade levels of salary was reduced to five salary grade levels. In context of PAC, this program should not be terminated as it was framed in order to control the overall labor costs. A major part of such costs is contributed by compensation and benefits offered to employees.

Though employees might consider it to be loss of promotional levels or manipulation of the compensation system but it will enable reduction in loss of jobs. Question 2 The merit bonus system was implemented in the organization so as to enhance overall creativity and innovation. It can be stated that this system was a key driver in context of organizational productivity. Bonuses in PAC was considered equivalent to compensation given to employees (Gusdorf, 2011). Though it was a method to achieve better results but there is no such return observed on the investment made by the firm towards such bonus system.

This system can be improved by reducing the bonus amount and making the entire system centered towards high level of performance. Question 3 A reward system in any organization needs to be motivating as it is the only factor which can increase the level of performance of employees. There are various ways to make a reward system motivating such as designing a system which will not discriminate amongst employees and benefits will be provided to those who have set desired level of performance.

The entire system can be divided into multiple components where not only top level performers will be rewarded but even those will be given rewards who have tried to achieve desired performance level. Along with this the entire approach should be focused towards giving appraisals as well as monetary rewards since both of them are highly motivating factors. Question 4 In an organization where bonus system is a common factor and is implemented from many years, in such a scenario lot of conflict arises when such a system is discontinued.

The first consequence is that employees start to lose their motivational level. This lack of enthusiasm has a great impact on overall productivity of the organization. Secondly, it even initiates negativity in the workplace as employees begin to feel that their pay is being cut by the management. This reduces the percentage of extra effort which was previously given by employees. Question 5 The issue of FMLA employee of PAC needs to be resolved immediately as it has created a lot of problems for the employee.

Firstly, the company needs to send an apology letter to the employee along with that half of her fees need to be reimbursed within least time frame. This could help to solve the problem related to her mortgage company and issues regarding her credit score. On the other hand it is essential to identify those team members for whom the entire mess had taken place so that such incident is never repeated. Reference Gusdorf, M. L. (2011). PAC resources, Inc: a case study in HR practices. Retrieved from: http://www.shrm.org/education/hreducation/pages/pacresourcesincacasestudyinhrpractices.aspx .