Smith compressors Ltd

Subject:ManagementPrice:2.84 Bought9

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Smith compressors Ltd. is a company based out of Ontario, manufacturing and supplying 

compressors to various industries since 1980. In 2004 they bagged a very prestigious 

contract to sell their products to Brazil after PM of Canada signed on a bilateral trade deal 

with Brazil. To support the increased demand in production, Smith compressors invested 

in a new production facility in Nova Scotia. 1st shipment left for Brazil in the summer of 

2005. 

Everything was working well for Smith compressors until recession hit the world markets 

in 2008 and by 2010 Smith compressors was struggling to keep itself above the water. 

Eventually they decided to close down their facility in Ontario and laid off 250 employees. 

Fast forward 2014, encouraged by better economic environment Smith compressors 

reopened its closed-out facility in Ontario and made a cautious start of production. It 

penetrated in newer growing markets in Asian countries and in couple of years it was 

producing at its full capacity. Happy days were back again.2018 onwards Smith 

compressors however started facing problems with it's labour unions regarding wages, 

benefits & working conditions at the plant level. High turnover of supervisory and 

managerial level staff was also becoming a big challenge for the company to deal with.  

After they failed to manage this situation, Smith compressors hired your company for 

external intervention and bail them out and put them back on track.  

Other information available: 

Smith Compressors Ltd. Is the 3rd largest compressor manufacturing company in Canada 

employing about 1200 employees serving domestic as well as international markets. 

After about 4 weeks of investigations by interacting with all stake holders your team came 

to the conclusion that employees at all levels are unhappy. Apart from many other points 

following were the 2 main reasons of discontent 

a. No guidelines for appraisals leading to random promotions/increments/transfers 

b. Poor benefits & relatively lower pay specially at the supervisory levels 

In your recommendations you are required to suggest the;              

1. Well-developed appraisal system for: 

a. Front line production workers 

b. Front line managers 

c. Sales staff 

2. Make recommendations for compensation and benefits for;           

a. Front line production workers 

b. Front line managers 

c. Sales staff