Contents

• This report is based on the following case study -
• BROOKS LIMITED-
• Case Study for negotiation meeting and individual report:
• Brooks Limited provides a range of Management consultancy solutions to clients. Most of its work is for SMEs customers, who are looking to design effective management policies in the organisation which includes: training, coaching leadership. The Brooks Limited head office is in the UK, however several self-managed work groups operate remotely across several European countries including Germany, Poland and Greece which amounts to around 50 highly skilled consultants mostly under the age of 40. Brooks Limited employs over 150 staff in the UK, about 100 of them are consultants, who are frequently required to work in small project-based work groups for corporate clients.
• There is variation in levels of basic pay, hours of work and holidays between UK staff and those employed across mainland Europe. Head office staff work a 37 hour per week. Working hours in Europe vary from 35 to 42. Holiday entitlements range from 20 – 27 days, depending on the country where staff are located. 30% of staff belong to a union that has been holding regular meetings. The Association has recognised the union for consultation purposes only, but might review recognition if union membership increases.
• Until the economic downturn last year, the labour market for experienced consultant was buoyant. Brooks Limited had previously been able to recruit because it has a policy of paying well – its basic pay is at the upper quartile level for the sector. Consultants were able to gain individual bonuses based on the work they do with clients, and in addition there has been an annual bonus for all staff based on the company’s profits. This annual bonus, which has increased in recent years, was worth £11,000 to the average employee last year.
• In the last year, the company’s revenue and share price declined markedly. This year it anticipates that the annual bonus payment will be only about a fifth of last year’s, and is forecasting no annual bonus payment for next year. Individual bonuses have similarly been reduced, and the company has informed staff that there will be no cost of living pay increase this year, the first time that this has happened in the history of the organisation. At the moment there are no plans for redundancies and the CEO is hopeful that a freeze on recruitment will ensure no job losses; although staff know that market conditions are poor. Staff turnover has not increased, although sick absence and grievances have risen (from a low base).
• The introduction of a reward strategy has never been considered but it is clear that these anomalies in reward will soon need to be addressed and further investigation is required as to whether the current reward strategy is motivating and engaging employees. You are a reward consultant appointed by the Board to help them to address this strategic issue. Your initial analysis reveals a confused picture – several different reward systems across the business. It is your professional judgment that there will inevitably be problems of morale and motivation if the situation continues.

Description

This report is based on the following task -
This assignment is a negotiation exercise leading to an individual report. Students, in groups of four or five, representing a management/HR team, will design a new reward system within a specified case scenario. Working as a group you should:
Put forward recommendations for a suitable reward policy and structures at Brooks Limited that are based on a critical evaluation of the current situation and will demonstrate good practice in serving the future needs of the business, its clients and its employees.
Hold negotiation meetings with union representatives, and explain and justify your recommendations to them, and answer any questions that they might have. In turn, the roles will be reversed. The negotiation meeting will take place in HR School 2 and is a COMPULSORY part of this assignment (THIS WILL TAKE PLACE IN HR SCHOOL 2)
Act as a group of union representatives for another student group putting forward proposals for Brooks Limited, and raise any concerns that you might have.
Produce an INDIVIDUAL written report setting out:
your recommendations,
your key arguments as put to the union, and
An honest assessment as to the outcome of the meeting with the union. In the light of the meeting, how could your recommendations and arguments have been improved?