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Ms. Van Michelson I would like to present this organizational proposal to you as the organization is facing 17% net loose in total income and demands to cut the organizations perks from 8 to 5 % so it will be crucial for us to bring an immediate and effective change in the compensation system of organization. We as the HRM team the below changes will prevent us from closing down international offices and will increase the overall revenue in 3 to 5 years. The main aspect of the strategy is that the all the changes that have been mentioned in the organization and the international operations will continue to affect us as a whole until the recession and the economy is recovered. It’s clear that the strategy I will refer best matches to the second strategy which needs to focus on Performance, as well as revenue, that is reviewed every 6 months to a yearly performance that will have a maximum rating of 5% instead of the 8% every six months. This will stay in place until the economic recession that we are facing is eliminated. Ms. Van Michelson being the Human resource manager in the organization I would make some of these permanent and some will be temporary in the appraisal system. The temporary changes will consider modification of performance management of organization. The permanent change will be implemented by restructuring the additional benefit package in which basic consideration will be on cutting expenses. I also feel that if we make such changes we can keep the US operations open in the locations we have and it also will not affect the local communities with unemployment and large layoffs. The first thing I would propose is to not have an bi- yearly performance revenue but instead go to a yearly revenue and we most also look at the pay increase model it is my belief that if we reduce that percentage say from 8% max to a max for the next 3 years to 5%

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