Case Study Case Study


Case Study

Case Study

Exercising Strategy

  1. More foreign parts have significant benefits when a consumer needs to buy a car (Heneman and Schwab, 1985). That is, the car will be of worthy as most of the imported parts are mainly of value so as to maintain the market competition. On the other hand, the high-value parts imply high prices for the car. Thus the cars will be more expensive.

  2. Globalization in the motor parts industry has increased the raw materials, the car parts, thus implying that more workforce will be required hence more money will have to be invested in paying the workers rises worker’s income (Heneman and Schwab, 1985).

For low-wage countries, the importation ofnew material will lead to a reduction ofcash that employees are paid (Heneman and Schwab, 1985). It will bein contrary to that invested in the importation, thus lowering theirliving standards.

  1. I agree with Thomas DiDonato because workers will have to find better jobs that will sustain them adequately without compromising one thing for the other like working for overtime while paying much for daycare.

  2. Leah and the other automakers should pay more to meet the interests of their workers (Heneman and Schwab, 1985). The move also helps to maintain a good relationship with the employees so as to get more from them than pay less and have the riot and even destroy property. Thus losses will be incurred.

Human Resource in Small Business


The case discusses the incentive benefits, where the owner of thecompany, promised the workers that they will receive cash for theirshares as part of their retirement plan and a profit sharing planthat was later on invented to benefit the workers. The incentivefalls under commissions, where the workers would be paidweekly depending on the sales (Heneman &ampSchwab, 1985, p.20). The workers used to be updated so thatthey could estimate their profits and calculate their share. Thesemethods were vital for the company performance. It is clear that thismainly had an impact on the general functionality of the businesslike participating in trade windows, attracting interests of healthfood stores, food distributors, and supermarket chains, and with thecompany’s market expanding to cover North America and someinternational markets.


I expect the motivational impact of profit sharing and stockownership should be different as the small company still has to doeverything so as to expand thus it calls for incorporation of verynecessary measures to see the company rise.But as for the large corporations, theactions to be putin place will be less just to maintain the market or just to improvefew parts of the company (Bob’s Red Mill, 2016).


In the case I was brought in as the consultant by Bob’s Red Mill, Iwould recommend they add other forms of incentive pay. The move willincrease the company’s net income and thus improving the day to daybusiness of the firm. Production paymentswill be ideal. It will entail paying the workers depending on theamount of work done (Bob’s Red Mill, 2016). As aresult, this will encourage the employeesto work harder thus increasing the work output. Merit pay, where theworkers work is rated, and get awardaccordingly. It encourages competitionhence more production of quality work.


Heneman, H.G., &amp Schwab, D.P., (1985).“Pays Satisfaction: It’s a Multinational Nature and Measurement,”International Journal of Psychology 20.

Bob’s Red Mill (2016). Retrieved on 27th September 2016from www.bob’