You hold the HR directorship of a local company located in Canton de Vaud, Switzerland, which employs 100 workers (all in a managerial position). The company offers an incremental pay rise of 3 per cent every year. It also offers some benefits such as health insurance, life insurance, and private pension plan. The company is a subsidiary of a Brazilian company that has a meritocratic reward system. The HQ wants you to implement its pay for performance system, and link incremental pay rises to performance. In addition, they demanded you re-think the benefit system and asked you to withdraw the private pension plan.
You hold the HR directorship of a local company located in Canton de Vaud,
Switzerland, which employs 100 workers (all in a managerial position). The company
offers an incremental pay rise of 3 per cent every year. It also offers some benefits
such as health insurance, life insurance, and private pension plan. The company is a
subsidiary of a Brazilian company that has a meritocratic reward system. The HQ
wants you to implement its pay for performance system, and link incremental pay rises
to performance. In addition, they demanded you re-think the benefit system and asked
you to withdraw the private pension plan. Based on that information please answer the
following:
1) What external influences do you need to assess before responding to the HQ’s
demands? Explain the impact these external influences might have on the changes
that the HQ want to introduce.
(50 marks)
2) Presuming the changes are implemented what are the potential consequences
for the Swiss managers? (You can draw from motivational theories to answer the
question).
(50 marks)
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