All job roles at LIPC Integration Plant Plc. have undergone a time and skills review by assessors of the Chartered Institute of Personnel Development (CIPD) regarding their payment systems.
These CIPD assessors are professional work-based assessors. Based on the review and recommendations from the assessors, the management team of LIPC Integration Plant Plc. has chosen to adopt a performance-related pay system. Under this system, the actual performance level pay for each grade of worker at LIPC Integration Plant Plc. is entered into the main computer, which then automatically allocates pay and rewards to individual employees according to their grade and level of performance.
There has been mixed reactions from the employees since the system had been introduced nine months ago. The complaints and the views of both the workers and the management of LIPC Integration Plant Plc. are shown below.

Design department
The workers have reiterated that their work is creative and complex and that they should be duly recognised and better rewarded for their talent and creativity. Also, the workers believe that the designs, which they create, should remain their individual intellectual property, a notion which the management of the company is totally against.
The premise of the management is that the work and creations of the design department’s professional staff members remain wholly the property of the LIPC Integration Plant Plc. as long as they are, and remain in, the employment of LIPC Integration Plant Plc. However, the management of LIPC Integration Plant Plc. is finding it hard to hire replacement staff members with the talent and skills commensurate with those who are leaving the company and those with the required skills within the same industry are scarce. The management team of LIPC Integration Plant Plc. therefore has limited choices in this respect. The board has attempted to negotiate with the design department’s professional staff members in an attempt to harmonise their perspectives, but their talks have so far been inconclusive. Meanwhile, the view of the professional work-based assessors remains that the quality of the designs may have been affected by the payment and reward system. They have consequently suggested that these design staff members should be hired and rewarded as consultants, rather than as full-time members of staff.
Fabrication department
The workers in the fabrication department at LIPC Integration Plant Plc. welcome the relatively new performance-based pay and reward system, which has incentivised some of the workers to work longer hours, pay more attention, and be more dedicated, to their work. It has been noted by the professional assessors that the workers’ level of productivity has improved.
Additionally, the workers have also asked for more training. The management has verbalised its support in this regard and stated that this is likely to form part of the reward incentives for high performing employees.
Assembly department
The workers in the assembly department at LIPC Integration Plant Plc. have stated that the performance-based reward is not favourable to them and that they have not seen any increase in their pay in comparison to their colleagues in the fabrication department, for instance. The workers have requested more flexible hours of work, and frequent short coffee breaks, being as their work is repetitive and monotonous. The premise of the workers is that the frequent breaks would enable them to refresh themselves, and thereby enhance their productivity levels. However, the management has declined this proposal. In addition to this the workers have complained that there is simply no way of improving their level of productivity, and thereby their pay and rewards, as the work is clearly planned and rigidly designed.

The management has stated that they are unwilling to increase the assembly workers’ pay and/or change the work structure, and have not yielded to the assembly workers demands. Instead they have threatened to relocate the duties of this department abroad, to a low-cost country such as Vietnam or India, as the work is quite basic and requires little or no training.
The professional assessors have advised the management team that immediate impact of this rumoured relocation could demotivate the workers in this department and consequently adversely affect their level of productivity.
The management team have also been advised to consult the relevant employment laws and policies in relation to this withdrawing of workers’ jobs.

Questions

1. Identify and discuss, with reasons given, the commonalities and differences of interest (namely: unitarist, pluralist and radical) that exist in the above scenarios for the departments of this company.
2. What recommendations would you make in relation to each of the above departments?
(You should compare and contrast the unitarist, pluralist and radical approaches in your answers).
Submission

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