Case Study on Plastco Packaging

Case Study on Plastco Packaging

Strategic Compensation

CONTENTS

Introduction 3

Impact on the organization 4

Who is involved in the problem 5

Primary Problem 6

Secondary problem 6

Solutions and Recomendations 7

Short Term Implementation Plan 11

Medium Term implementation plan 13

Long term Implementation Plan 14

Conclusion 15

INTRODUCTION

Plastco Packaging is a medium sized company and it produces plastic bags for retail chain stores. The company has different departments and has three different manufacturing processes for the bags. The first step in the manufacturing process is producing the plastic sheeting which comes as rolls of tubing. The second is printing the retailer’s name on the tubing and lastly passing the rolls of tubing through bag-making machines that cut and seal the tubing into bag lengths. The case mainly focuses on the third phase, their current business issues are arising from the third stage. The machines in this area require regular servicing for its various parts and need regular maintenance. The reporting process in the maintenance department is that the mechanics reports machinery problems to the maintenance supervisor, who reports significant problems to the plant manager as mentioned in the case. Company has six, bag making operators, and six inspectors and packers who ensure quality and pack them into boxes. The Company is also experiencing turnover among the inspectors/packer and the managers believe that productivity could be much higher. In addition, the bag-making supervisor is seeing an issue with a high level of waste. The inspection of the bags is also leading to incompatible quality among bags being delivered to customers and the company is receiving customer complaints. Also traditionally, operators and utility workers have always been male, while inspectors/packers have always been female.

The company provides 20 % indirect compensation as the case suggests to their employees, and it increases with the seniority. The problem they are facing is that the employees are not satisfied with the work and organization and there has been unrest amongst the employees ruining their interpersonal