HRM Policy | Case Study Report

1/27/2020
xyz
[COMPANY NAME]
Simply Literature
Production
Case study report

Introduction
 The objective of any human resource management policy is to enable the organization
to attract, acquire, develop, and retain talent in the organization. Compensation and
benefits system or the rewards system is one of the most important ways an
organization can value its employees and convey the worth of their efforts.
 It is important for any compensation system to be designed such that it has a clear
objective, fair and accurate metrics, integration with other HR policies, provision for
review, and clarity in communication with the key stakeholders as suggested in the
Compensation Notebook.
 The compensation system of ‘Simply Literature Production (SLP)’ lacks these key
elements in its design. It is a subjective rewards system based on the decisions taken
by its owner, Mr. Ravi according to his whims and fancies. The employees do not
have any clarity regarding the criteria for incentive or the amount of bonus they can
get for their work. There is also no periodic review of the system. The time of the
bonus is fixed at Christmas but there is no formal design of pay-outs. It is effective
in the sense that Mr. Ravi does acknowledge the efforts and behaviour put in by his
employees towards making the company more profitable.
Analysis
 Offering employees incentives for better performance is a common approach applied
by most organizations. In most cases, a certain portion of the pay varies depending on
the targets set for the employees. Bonuses or incentives are offered after a fair and
accurate performance assessment or on the basis of the organization’s annual profit or
market share. Any anomaly perceived by the employees in the rewards determination
and allocation may have an adverse impact on their job satisfaction, productivity,
engagement, and commitment levels.
 Employees in SLP are facing the dilemma of working with no formal policies and a
boss who while cares for their well-being, may not be equipped to deal with managing
their rewards and performance assessment in a fair and accurate way. From the case
study, it can be surmised that new employees may feel bonuses are based more on
longevity with the company than on merit. This may be one of the reasons new
employees would have a high turnover rate.
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