Report on Grace Foods UK: Issues, Pay Bill Analysis, and Rewards

This report provides an analysis of the Grace Foods UK case study, focusing on key organizational management issues. It identifies challenges such as aggressive market competition and rising overhead costs. The report includes a detailed examination of the current and projected pay bills, calculating the impact of a proposed 10% reduction. Furthermore, it explores a system for rewarding employees, considering the need for a competitive and proficient workforce. The analysis draws on relevant literature in human resource management and organizational behavior. The report aims to provide insights into strategic decision-making within the context of a competitive business environment, highlighting the importance of cost management and employee engagement.

Introduction to Organizational
Management

Content covered
• Introduction
• Issues identified in the Case Study of Grace Foods UK
• Calculate and present the cost of the current pay bill
• Calculate and present the projected new pay bill by reducing 10%
• System to reward employees
• References

Introduction
Different activities and function are executed by a business organization to
attain its set objective. Present presentation give information about the
various issues identified in the given case of Grace Foods UK.

Issues identified in the Case Study of Grace Foods
UK
Major issues that Grace Food UK subject to are mentioned below:
Existing market competitors have become aggressive in order to expand their business
operations for which they are providing various meal deals that is to exert pressure on
Grace Food UK.
Due to intense competition, there has been significant enhancement in overhead costs
incurred by the firm.

Calculate and present the cost of the current pay
bill
In the next slide, distinct aspects of current pay bill of organization is being mentioned
to understand the issues and comes up with a better plan:

Budgeted current pay bill
Employees Basic pay Bonus Pension(10%) Total
Co-managing directors 140000 42000 14000 196000
Co-managing directors 140000 42000 14000 196000
Directors 90000 27000 9000 126000
Directors 90000 27000 9000 126000
Managers 40000 4000 44000
Managers 40000 4000 44000
Managers 40000 4000 44000
Managers 40000 4000 44000
Supervisors 25000 2500 27500
Supervisors 25000 2500 27500
Supervisors 25000 2500 27500
Supervisors 25000 2500 27500
Operatives(45) 795600 79560 875160
Total 1805160

Calculate and present the projected new pay bill by
reducing 10%
As the shareholder o organization are looking for a 10% reduction in the year, the new
projected pay bill is developed addressing the proposed changes required in the plan
which is mentioned in the next slide:

Employees Basic pay Bonus Pension(10%) Total
Co-managing directors(2) 126000 37800 12600 176400
Co-managing directors 126000 37800 12600 176400
Directors 81000 24300 8100 113400
Directors 81000 24300 8100 113400
Managers 36000 3600 39600
Managers 36000 3600 39600
Managers 36000 3600 39600
Managers 36000 3600 39600
Supervisors 22500 2250 24750
Supervisors 22500 2250 24750
Supervisors 22500 2250 24750
Supervisors 22500 2250 24750
Operatives(45) 795600 79560 875160
Total 1712160

System to reward employees
In its current scenario, where in there is huge pressure on firm to reduce its
overhead cost, one of the most preferable mode could be by maintaining less
yet competitive workforce that are proficient and dedicated enough to act as
core competency for the firm.

References
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human
resource management practice. Kogan Page Publishers.
Ehnert, I. and Harry, W., 2012. Recent developments and future prospects on
sustainable human resource management: Introduction to the special
issue. Management revue. pp.221-238.
Hislop, D., Bosua, R. and Helms, R., 2018. Knowledge management in
organizations: A critical introduction. Oxford University Press.

Thank You