evaluate an new bonus plan that was designed to specifically address the perceived shortcomings of a previous plan.

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?