Introduction to Organizational Management: Assessment B Presentation

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TO
ORGANIZATIONAL
MANAGEMENT
Assessment B

Presentation Will Cover
 Case Study – Home Foods (HF)
 Key issues determined in case study of
HF
 Calculation of cost of current pay bill with
necessary proposed changes in bill
according to shareholder
 Rewarding system for employees
according to future performance under
shareholder consideration.

Case Study – Home Foods (HF)
 HF is immensely growing as food wholesale and
distribution firm of Manchester from year 2005.
 It supplies packaging as well as raw materials for
outlets that deals in fast food range in North England.
 From year 2005 to 2008 it has recorded huge growth
in context to its sales volume.
 It adopts functional organizational structure and
skilled staff to achieve higher growth an success.
 With its constant expansion it had become largest
food packaging and material supplier in England.
 Four shareholders were managing firm with 25%
ownership each.

Cont..
 The rate of absenteeism and employee turnover are low.
 The market has been captured by HF with competitive
pressures but in last few years the motive of getting high
market share has made the firm aggressive in which new
firm’s entry has become much easy.
 New entry has adopted plan of giving low priced services
by facing huge losses just to attract customers.
 The issues has been found of high overhead cost for
using polystyrene material for packaging that has
impacted its savings and further high salaries of
employees has given problems in rates.
 Budgeting is required in firm for better management of
financial resources.

Key Issues in Home Foods
 The business in modern world goes through
regular ups and down that impacts its
functioning.
 The firm was performing best and in skilled
manner but faced huge challenges across
the market competitors.
 Stiff Competition – The organization has
aimed to expand in which various
competitors entered in market that created
pressure on business. The new firm in market
has charged low price that is giving tough
competition to employees.

Cont…
 High Overhead Costs – The use of
polystyrene due to its protective features
has been selected by firm to pack
materials from which huge cost is being
given by firm. Even the employees are
provided with higher salaries that hikes
the bill of costs.

Calculation of Current Pay Bill
Cost
Job Role Total Salary Pension Scheme
Co managing
directors (2)
£312000 £24000
Other directors (2) £208000 £16000
Managers (4) £170000 £17000
Supervisors (4) £100000 £10000
Operatives (45) £55440 £5544
Total £845440 £72544
Current Pay Bill
Cost
£845440 + £72544 = £917984
Shareholder
Reduction (10%)
£917984*10% = £91797
New Pay Bill Cost £917984 - £91797 = £826187

System of Rewarding
Employees
 The bill has mentioned all details about
salary of employees including bonuses and
pension schemes.
 According to high bill cost practice and plan
of initiating rewarding system has been
aimed by management of an organization.
 There are various methods from which staff
members with best performance can be
rewarded that helps in saving hug cost with
the firm.

Cont..
 Profit Sharing – This method is beneficial for
firm and employees at equal level. After a
certain time in organization the employee
must be benefitted with plan of sharing profits
equal with basic salary so that occasionally the
firm will have higher expenses.
 Gift Cards – This is issued by organization
itself for benefitting staff members that has
done best performance in their respective field
and all payments are given by firm that helps
to celebrate birthday, anniversaries and
success.

References
 Chmiel, N., Fraccaroli, F. and Sverke, M. eds.,
2017. An introduction to work and
organizational psychology: An international
perspective. John Wiley & Sons.
 Riggio, R.E., 2017. Introduction to
industrial/organizational psychology.
Routledge.
 Cameron, E. and Green, M., 2015. Making
sense of change management: A complete
guide to the models, tools and techniques of
organizational change. Kogan Page Publishers.

Thank You!