HRMT 200: Total Compensation Case Study - Analysis and Recommendations

This document presents a comprehensive solution to the HRMT 200 Total Compensation Case Study, focusing on Reynolds Plastic Products. The assignment requires an analysis of compensation practices, including legal compliance in Alberta, evaluation of incentive compensation, and the proposal of alternative practices to improve staffing outcomes. Furthermore, the solution evaluates a proposed employee benefits plan, considering its appropriateness and potential impact on human resources management outcomes like engagement, recruitment, and retention. The analysis draws on relevant data from the case, identifies key issues, and proposes alternative practices based on course concepts, ultimately offering a recommended strategy or solution for the company. The solution covers both compensation and benefits aspects, providing a detailed evaluation of each area and offering insights into improving the company's human resource management strategies.

HRMT 200 - Individual Assignment: Total Compensation Case Study
Complete the reading and research for both Parts 1 and 2, then answer the questions below. Marks will
be awarded based on how well your answer:
• presents and summarizes the relevant material in the case
• explores alternatives that reflect your understanding of key concepts and ideas about
compensation and benefits
• Identifies a logical recommendation or solution, using the materials covered in the textbook and
in class.
Please refer to the marking key for information about criteria and weighting. You should plan on writing
about 1-2 short paragraphs for each section (e.g. about 9-12 paragraphs in total).
Part 1 - Compensation (25 marks)
1. Read Incident 9-1 (Reynolds Plastic Products), pp. 455-456 in Schwind (2016). Assume that
Reynolds Plastic Products is located in Edmonton, Alberta.
Refresh your understanding of the relevant employment laws affecting compensation in Alberta
(refer back to your notes and materials Legal Environment).
Research the internet to compare the compensation being paid to Reynolds Plastic employees to
other relevant external sources of hourly/salary information (e.g.
http://www.labourmarketinformation.ca/, https://alis.alberta.ca/).
a) In what way(s) are Reynolds Plastic Products' current pay practices contravening any
legal requirements in Alberta? For each contravention that you identify, please propose
how Reynolds Plastic Products can meet its legal requirement(s).
b) Evaluate the incentive compensation practices that are being used by Reynolds
Plastic Products.
i. Describe what is appropriate or inappropriate about their current practices.
ii. Explain why you have determined this (e.g. what are the issues here?)
iii. Discuss possible alternative practices that might be considered to improve
staffing outcomes (e.g. effects on engagement, recruitment, retention, etc.).
iv. Present your recommended strategy or solution(s) (e.g. what should they do
next or instead?).

Part 2 - Benefits
2. Re-read Incident 9-1 (Reynolds Plastic Products), pp. 455-456 in Schwind (2016).
Review the Alberta Blue Cross health and dental benefits summary on the internet (Plans A and
B, https://www.ab.bluecross.ca/individuals-families/index.php).
Assume that Reynolds Plastic Products currently offers no benefit plan to employees, but they
are considering a modest plan modeled after Benefit Plan A for all sales, hourly/production
employees, and modelled after Benefit Plan B for all managerial/executive staff. The
organization plans to pay 50% of the premiums, the employees to pay for the other 50% of the
premiums. The anticipated total monthly premium costs are displayed below:
Plan A Plan B
Single Premium $40 / employee /month $60 / employee /month
Family Premium $100 / employee /month $120 / employee /month
Based on current employee demographics, Reynolds anticipates there will be 30 single Plan A
subscribers, 10 single Plan B subscribers; 65 family Plan A subscribers, 12 Plan B family
subscribers.
Evaluate the employee benefits plan that is being considered by Reynolds Plastic Products.
a) Describe what is appropriate or inappropriate about their plans.
b) Explain why you have determined this (e.g. what are the issues here?)
c) Discuss possible alternative practices that might be considered to improve human
resources management outcomes (e.g. effects on engagement, recruitment, retention,
etc.).
d) Present your recommended strategy or solution(s) (e.g. what should they do or do
next?).

Marking Key -Total Compensation Case Study (HRMT 200)
Compensation Case Study
Uses and describes
relevant data from the
case
5 4 3 2 1 Jumps to conclusions
without presenting
background information or
presents and relies on
information that is not
relevant.
Identifies key issue(s) 5 4 3 2 1 Does not identify what is at
stake or ignores the
consequences of inaction.
Presents alternatives that
are based on concepts and
theories from the
module(s) (text, class
discussion, other
resources)
10 9 8 7 6 5 4 3 2 1 Ignores possible
alternatives or presents
alternatives without
referring to module
information (e.g. what
makes a good process,
what does theory or good
practice suggest)
Organizes material
logically and concisely,
conclusion or solution is
based on the information
and analysis
3 2 1 Conclusions or
recommendations do not
relate to the analysis or to
the information presented,
or the relationship is difficult
for the reader to understand
Uses correct grammar,
spelling and punctuation
2 1 0 Contains many spelling or
punctuation errors; uses
incorrect grammar; difficult
to read.
General Comments: Total:
25

Benefits Case Study
Uses and describes 5 4 3 2 1 Jumps to conclusions
relevant data from the without presenting
case background information or
presents and relies on
information that is not
relevant.
Identifies key issue(s) 5 4 3 2 1 Does not identify what is at
stake or ignores the
consequences of inaction.
Presents alternatives that 10 9 8 7 6 5 4 3 2 1 Ignores possible
are based on concepts alternatives or presents
and theories from the alternatives without
module(s) (text, class referring to module
discussion, other information (e.g. what
resources) makes a good process,
what does theory or good
practice suggest)
Organizes material 3 2 1 Conclusions or
logically and concisely, recommendations do not
conclusion or solution is relate to the analysis or to
based on the information the information presented,
and analysis or the relationship is
difficult for the reader to
understand
Uses correct grammar, 2 1 0 Contains many spelling or
spelling and punctuation punctuation errors; uses
incorrect grammar; difficult
to read.
General Comments: Total:
25