Human Resource Management

PTO  policies have become good tools for HR staff to use in terms of  organizational  incentives. Use the Argosy University online library and  your textbooks to read  about PTO policies. Now, let us go back to  Company A and Company B from Module 1.

While  reviewing the information from the two merged  companies, the HR Director has  found out that each company has two  different PTO policies.

Company  A has a PTO system in which employees are given  30 days of paid time off each  year, which accumulates at the rate of  2.5 days a month. Under this policy,  vacation and sick leave are all  rolled into one paid leave and any absence  whether scheduled, such as  vacation, or unscheduled, such as sick leave, are  taken from the  accumulated leave the employee has earned.

Company  B has a more traditional leave system in which  employees are given 12 days of  vacation, 10 days of sick leave and 10  holidays. The company is closed on those  holidays. Vacation is  accumulated at a day per month. Sick leave has an  unlimited  accumulation, but unlike vacation would not be paid out upon   termination of employment.

Since  the employees of the merged company will be  working side by side, the HR  Director has asked you to review the  situation and make recommendations for a  solution.


As an HR Director prepare a report addressing the following issues:

  • Identify any additional information you would  need  to recommend a solution, and explain where you would likely find that   information.
  • Discuss any issues you would likely encounter  if  you were to merge the PTO system to a traditional leave system. Explain   which issues would be difficult to solve and why.
  • Explain any problems you see with leaving the  two  systems in place, and identify which system would be assigned for new   employees.
  • Make a recommendation for one common PTO  system.  Explain your system and why you think this system is the best system   for the company.

Include two to three scholarly  references in your response.

Write a five-to-seven-page memo to the  company’s Chief Executive Officer (CEO). Apply APA standards to citation of  sources.

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