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Plastco Packaging Compensation Case

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Plastco Packaging Case

Prepared by: Richard Marx

Spring 201_

Table of Contents

Table of Contents 2
Introduction and Synopsis 3
Background Information/ Current Operating Environment 4
Primary Problems 7
Secondary Problems 9
Alternatives/ Solutions 13
Recommendations 18
Implementation Plan 20
Appendix A - Plastco Departmental Chart 23
Endnotes 24
Bibliography 25
Case Study Analysis Form 26

Introduction and Synopsis

This report introduces us to the Plastco Packaging Company, its current operating environment, and the many problems it faces. The report proceeds to identify solutions, and weighs their costs and benefits. This document then proposes some recommendations and an implementation plan to resolve the serious business crisis facing Plastco."

Plastco Packaging is a medium sized company producing a variety of plastic bags for the retail chain market. The company is organized into two main departments: the bag-making and maintenance departments. Plastco’s classical managerial style heavily influences the company's culture and values, employee and labour relations, and compensation system.
The maintenance department staff ensures the bag-making machines are regularly serviced and maintained in proper working condition. But it is the bag-making department where Plastco is experiencing poor employee relations and low job satisfaction and low employee motivation as well as significant turnover of female employees.

Management is keen to improve the motivation and morale of bag-making employees to boost the quality and quantity of their production. And it has to act quickly because customers are complaining about the quality of the company's plastic bags. What's more alarming is that a competitor has suddenly emerged on the scene. The competitor is producing better quality plastic bags at a lower price and thus is quickly gaining market

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