Please complete the following from the textbook:
Case 25.1 Harwood Medical Intruments PLC
This case asks you to evaluate an new bonus plan that was designed to specifically address the perceived shortcomings of a previous plan. In particular you should consider:
- The purpose of changing the system
- The level of bonuses paid and the relative amount paid to managers in each representative divisions given their performance
- Any noticeable difference in the level of bonuses paid under the old and new systems
- Does the changed plan address the concerns raised about the old system of awarding bonuses
- Do you think the new bonus plan will be embraced by the managers of the divisions?