Compensation and Benefits Report: Alliston Instruments Analysis

This report critically examines the compensation and benefit strategies at Alliston Instruments, analyzing the current managerial strategies and identifying major problems with the existing compensation system. The report discusses the impact of the firm's compensation strategies on organizational success, highlighting challenges such as employee dissatisfaction, high turnover, and conflicts between employees and supervisors. Recommendations are provided to address these issues, including the implementation of a structured hourly wage system, effective market analysis, and long-term and short-term incentive policies. The report emphasizes the importance of employee and organizational development in compensation planning and suggests focusing on reducing production costs and facilitating employee services to improve sales and overall performance. This assignment, completed for HRESS 2203, provides a comprehensive analysis of the Alliston Instruments case study, including an executive summary, analysis, and recommendations.

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Compensation and Benefits
Introduction
The objective of this paper is to critically discuss about the compensation and benefit
strategies at Alliston Instruments. Primarily, this report will find the current managerial
strategies, discuss about the major problems relevant to the compensation, and benefit system
of the organisation. This will also analyse the firm’s current compensation strategies and their
effect on the organisational success. At the end, this report will find some challenges and
recommendations for the organisation to changes its compensation strategies.
Managerial strategy
As in 2011 after the entry of two Asian firms in the Canadian market Alliston face dramatic
fall in its sales, to manage this challenge firm introduced a new Individual Performance pay
plan without any detailed and structured format. The structural variables in an organization
are management, depart mentation, effective communication and decision-making data,
control system, leadership and job design, and reward system. TO deal with the loss
organisation introduces new equipment that costs highly, employees were raising issues to
not to use these equipment, and this ne innovation also affected their compensation and
benefits as well.
Reason about the pay system issues
The system of pay changed the incentives to hourly production wages, as due to lack of
recorded format and recording all the extra work hours’ employees face challenges to make
effective coordination. This led the high employee turnover and retirement, and there were
lots of complaint for the side of the supervisors about the new pay system. The reason for
dissatisfaction was that it had put them under extra pressure. The lead many issues and
conflicts between employees and supervisors, their relations were bitter from past and this
lead a rise in that.

Compensation and Benefits
Poor compensation strategy is possible to lead conflicts among the workers and organisation;
poor satisfied employees affect the productivity, sales, and profit. High cost of production
and regular decrease in the sales, affected the company’s earning and profit management.
Challenges
The major challenges raised in the Allison management were from the employee’s regular
poor performance, issue, and conflicts among the supervisors and employees. These issues
also affected the overall working and implementation of the production strategies.
To solve the issue management needs to develop the planning and strategies of employee’s
compensation focusing collective development of employees and organisation both. No
employee is ready to work in conflicting environment with a poor paying system.
Recommendations
Strategic implementation of compensation is based on effective market analysis and
controlling strategies (Long & Singh, 2013). Implementation of the Individual pay system
requires effective involvement of employee’s development and organisational development
as well. This Individual pay system needs to represent a structured hourly wages system and a
recording format that make the management of payment easy. A long-term and short-term
incentive policy is effective to implement on the compensation strategies. Change is effective
but it needs effective planning hence before making any change in the production unit,
working and manufacturing department Alliston have to focus on reducing the production
cost, facilitate the employee services and plan low cost marketing strategies to acquire large
population attention and increase the sales of the product..

Compensation and Benefits
References
Long, R. J., & Singh, P. (2013). Strategic compensation in Canada. Langara College.