Problem Solution Riordan Manufacturing

Critics (Armstrong, 2001) admit that a balance must be found between recognition and reward for the performance of the individual, for the group (and between different groups) and for the business as a whole. Payment for the person’ which is emphasized puts a premium on rewarding individual performance precisely because individual performance is seen as ‘directly controllable’. Yet individual performance-related pay may discourage employees from taking risks or from collaborating with others-even though these may be exactly what is required in terms of business. Interestingly, there are signs that a generalized interest in individual performance-related pay, and particularly in individualized performance management, has been challenged more recently by growing concern with team-working and with team-based payments.
&nbsp.The importance of new motivation and reward strategy was caused by lack of teamwork among the managerial staff, low employee morale, inadequate reward strategies, it was found that low levels of commitment and business performance were more strongly related to job design and dissatisfaction. Also, the company placed a low emphasis on reward systems. Ironically, A loss of loyalty was observed as employees realized that they have limited opportunity to express grievances over unfair evaluations, and felt that neither the evaluation criteria nor the results are being communicated to them (Henema 2005).
&nbsp.Stakeholder Perspectives/Ethical Dilemmas
&nbsp.The main stakeholders of the company are Hugh McCauley, Chief Operating Officer, Charles Lacy, VP of sales. Hugh McCauley is interested in the bottom line results of the company. Believes reward system is adequate and is not the root of the problem. In contrast, Charles Lacy is very concerned the way the company is handling the new group sales incentives. Concerned about the inadequate training for the staff with the implementation of new system. Both Maria Trinh, Chief Information Officer and Kenneth Collins, R&amp.D vice president suppose that the staff receives unfair treatment and inadequate rewards. Both Michael Riordan, President of the company and Barbara Masterson, HR consultant suppose that change in reward system is an issue of the day. Dale Engels, Chief Financial Officer and Yvonne McMillan, Director Human pay a special attention to their personal position and problems neglecting the role and importance of rewards and motivation. These facts suggest that pay is the subject of conflict. moreover influence over the form and the level of wages has provided management with a lever to enhance workplace influence. Thus, executives suppose that the management of reward is a complex and often perplexing task. It is one that is bound up with meeting strategic business objectives, but reward decisions are concerned essentially with the motivation of workers in a range of different roles.
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