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2) If conflicts arise and if the issue won’t get solved, there will be a waste of time as they
have to follow gain agreement.
3) If compensation is not given as per the work, employees may feel dissatisfied which
may lead to a loss of interest in the job and the company may lose good employees. As
one of the company employees worked for seven years and performed multiple roles
but got frustrated because of less compensation.
4) The newcomer may find difficulty in adjusting to company’s culture as no one will
provide any guidance and task with no clear job descriptions.
5) Employees may find it challenging to evaluate their progress, as there is no corporate
ladder.

Compensation model:
The traditional compensation model used to give a fixed amount, but in the new model with a
fixed amount, they will also pay a premium amount to the employees. But this new model will
again fail as the premium amount will by 20% every consecutive year. Also, they have to prove
their work for the renewal of premium compensation. They may feel frustrated as only top
performers will get a rise in salary.

6. Recommendations:

All the organization structure has some advantages and disadvantages. Still, Mr. Chris
needs to reframe the compensation policy as the employees are not satisfied and lose their work
interest. The new model will also lead to dissatisfaction among the employees and the lack of
accountability will increase. Hence, I would like to suggest him frame the policy such that
employees feel motivated to work.
As it is very difficult to change whole organizational structure and all the structure has its own
merits and demerits, the self-management culture will work while scaling up also provided
while hiring the person they need to make sure that person will fit in this culture. Proper training
and development programs are required for the new joins so that they won’t find difficulty in
adjusting with the organization’s environment.