Midwest Education: Case Study

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Midwest education is a manufacturing company in the US that offers transportation services. It is also a creative company that deals with the supply of advanced technological tools used in learning, creating systems and supplying educational materials for business and science classes. The company sells books, manuals, videos, specialized hardware, and software and develops business applications. (Fischer, 2013). The primary operational values of the company include; cost reduction, innovation, and quality improvement. The main challenge experienced by the company is the rise of contrasting ideas emanating from three different quotas. The views are creative development, manufacturing, maintenance, transportation, and service in response to the Obamacare policy under the Patient Protection and Affordable Care Act (ACA). This study burdens the human resource managers with the responsibility of playing an instrumental part in enforcing the changes made in the organization, especially those revolving around the adoption of new roles and the well-being of employees.


An issue presented from the benefits and compensation section of the company results in two different viewpoints from the company’s three divisions. Strategic compensation requires that one identifies and analyzes various human resource management perceptions so that the most effective approach can be chosen to benefit the employees and the organization (Van Wyk, Swarts & Mukonza, 2018). The two perspectives, in this case, are to comply with the Obamacare law that dictates that the company provide healthcare insurance to all their permanent employees or fail to implement it. Failure to comply with the law will compel the company to lose $2000 for every employee in fines (Fischer, 2013). When the law is implemented, the company will operate normally without any hitch and interference from the state government. An organization can potentially lose money in massive amounts if the human resource managers do not come up with the best solution and approach in whether the organization should adopt the Obamacare Act. Losing $2000 on every employee can be costly to a company if the company fails to subscribe to the Act and the law catches up with them.

Passing the Obamacare law will enable the company to acquire a legal cover and formalize its business operations (Robert & Kim, 2017). However, the law’s implementation will come along with some disadvantages, such as an increase in the cost of operation and performance. The law may also lead to a rigid structure that may interfere with the company’s operations. When the law is not implemented, the company will save big on operations and allow it to embrace changes since the structure will not be stiff. The disadvantage associated with this particular viewpoint is that the company’s image will be ruined, and it may face serious competition from other rivals who have adopted the policy (Robert & Kim, 2017). Enforcing the Obamacare policy would be critical and instrumental to the organization as well as its workers. Implementation of the Act may be costly to the company, but it saves the company a lot of trouble with the state since the company will not be fined. A company may be trying to embrace what other companies are doing so that they do not risk losing customers. However, the duty of the human resource managers is to ensure that the adopted strategy may not cost the company.

When the perception favors adopting the policy’s implementation, the outcomes that are likely to be noted will vary. They will range from employees being motivated, the rate of satisfaction among employees will significantly increase, the productivity of the employees will be on the rise as they will execute their duties with a lot of enthusiasm. The company will gain a competitive advantage, and its performance will improve. When an organization provides insurance cover for the employees, they develop a sense of belonging to the company, and they will acknowledge that the firm appreciates and values their services (Kuhrmeyer, 2019). Therefore, the motivated employees will work for the company as if it was their own, thus increasing the productivity of the company; making it compete favorably with other competitors within the market. The production of an organization is directly proportional to the productivity of its employees.

Adopting the policy enables an organization to enhance its competitive advantage. A company will strive to retain its customer base and ensure that its clients maintain their loyalty to their products (Robert & Kim, 2017). However, the adoption of the other viewpoint may result in the loss of employees, which in many cases leads to reduced performance. Thus, the company will have a significant reduction in its production. Another outcome of this particular viewpoint is the cost-saving on finances that would otherwise be used to pay insurance cover for employees in the company.

The use of various ways can resolve the viewpoints presented in this paper. The managers drawn from the three divisions can potentially use the strategic plan of compensation to ensure the adopted methods have significance to every member and employee of the organization. The idea of strategic compensation entails the aspect of internal consistency that ensures quality is achieved for all positions in the company (Martocchio, 2017). With the strategy, the company will lay down a plan which will benefit every employee in all the company’s divisions.

Another strategy to resolve the difference between the different viewpoints is the adoption of a system that involves the compensation of a competitive market. The market competitive compensation system entails using appropriate compensation plans fixed within the industry to enable the organization to complete effectively and set practical market standards (Martocchio, 2017). To reflect and evaluate the various methods for market-oriented compensation, the organization leaders who are taken from different divisions of the firm will successfully identify the gaps in perception. This is achieved by putting to practice what is necessary for their organization and benefit their employees.


The Midwest company endeavors to offer technologically advanced services to the education sector, which is rapidly embracing technology at an early stage to give students some sufficient knowledge that is now a necessity in the changing world. The company is trying to maximize its operation in quality improvement, reduce costs, and enhance innovation. The company can either comply with the Obamacare Act and smoothly operate their business or fail to comply and face fines in tunes of thousands for every employee that is on a permanent job contract. The Obamacare Act stipulates that the company should cater to their health insurance cover failure once an employee is under a permanent contract. The company should weigh all the possible outcomes when they are in the process of complying with the Act. While at it, it is of great significance to know what the rival companies are doing to remain competitive.


Fischer, A. K. (2013). Resolving Healthcare Issues in Compliance with the Patient Protection And Affordable Care Act. Journal of Business Case Studies (JBCS), 9(6), 449-456.

Kuhrmeyer, P. R. (2019). Organizational Implications and Reaction to the Affordable Care Act (ACA) from Firms with Less Than 50 Employees.

Martocchio, J. J. (2017). Strategic Compensation: A Human Resource Management Approach, 9th Edition.

Robert, B., & Kim, P. (2017). Turning Corporate Compliance Into Competitive Advantage. University Of Pennsylvania Journal Of Business Law, 19(2), 285-239.

Van Wyk, A., Swarts, I., & Mukonza, C. (2018). The Influence of the Implementation of Job Rotation on Employees’ Perceived Job Satisfaction. International Journal of Business and Management, 13(11), 89.

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