Case 25.1 Hardwood Medical Instruments PLC

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?