The Future:

CASE WILL BE FOCUSSING & REVOLVING AROUND FOLLOWING POINTS: Recognition & Praise are more significant than money in labor market of Pakistani context Invest on the existing company manpower because they are most valuable firm assets and why Servis would offer some other company to hire Servis employees experience retaining the high performing employees; investing in its employees can be very profitable for an organization in terms of increased productivity; Appreciation is the best motivation, so weve created a fun and inspiring workspace youll be glad to be a part of, including on-site doctor and dentist;; professional development opportunities; on-site day care to get you through the day. We love our employees, and we want them to know it. EQUITY BASED BONUSSES across the firm: The recognition should occur as close to the performance of the actions as possible, so the recognition reinforces behavior the employer wants to encourage. Solutions and Innovative + Cost Effective Ways of Employee Recognition and Compensation & Benefits will be devised in the case.

CORE PROBLEM of Lark & Finch

Impact of specific BONUSES tied with senior lever are spread through the entire employee group, causing ORGANIZATIONAL INJUSTICE

Bonuses are goal based. Employees achieving their goals, as stated in the Annual Operating Plan for a year, will be rewarded with bonuses only. Company has 2 types of bonuses: 1. Company performance * Number of Billions (targeted): This is termed as Collective Effort Bonus: When 75% of total company goals get achieved at the year end, then every employee is provided with an annual bonus.

2. Individual goals based: If an employee meets his/her set targets as recorder in the AOP, company gives him/her 14 gross salaries as a bonus. Only 4 or 5 people get this bonus of 14 gross salaries per year. This will be calculated as:

This is multiplied by 15 because 1.5 times basic salary will be generally given to everyone but if an employee individually achieves his/her goals then it will further be added by 14 like 14+1.5=15.5. Issue lies in the fact here that only 1% of the total workforce is eligible for this bonus, creating several interrelated issues like middle and lower level employees view this inequity as a serious threat to their self-esteem hampering motivation, morale and performance at individual level because of the fact that they work hard to achieve the collective goals but in the end they get only 1.5 times salary bonus relative to the 1% top management.

SOLUTION:
Efficient HRM system in the cutthroat market scenario is the one which plans to do preventative treatment and early-stage diagnostics on emerging motivational issues. Piecework plans or merit pay incentives should be there for those who exceed the performance. Attractive package of Intrinsic and extrinsic benefits to regulate companys "motivational capital" inherent in the work itself and in the best performers. SEEK ADVICE FROM HAWTHRONE STUDIES

EXHIBITS:

The Group financial statements include the financial statements of the holding company, and its two wholly owned subsidiaries Servaid Pharmacy (Private) Limited and Shoe Planet (Private) Limited. Financial statements of the subsidiaries have been consolidated on a line by line basis. All intercompany balances and transactions have been eliminated.