Israel: Redesigning the Production Floor and Reward System in a Food Production Company: HRM Considerations

This case is about Bamco, an Israeli food production plant. The plant faced challenges, as Netfood, a multinational corporation, purchased 64% of its holding share and set new quality standards. Two problems were identified whose solution could help to increase the plant's productivity: One, relating to how employees work, and two, relating to how employees are being rewarded. The case discusses both issues in the context of changing labor relations in Israel as well as globalization processes affecting the Israeli economy. After reading this case, students will be able to describe variations in rewards practices, identify key human resource management (HRM) challenges facing organizations undergoing major change, and observe differences in the role of employees’ unions. Students will also understand drivers for ongoing training and development within organizations and the role of HRM in multinational corporations.