Alternative Solutions
In order for Riordan to accomplish this vision the company will have to take a number of necessary steps to align the organization’s reward and compensation systems with the new corporate sales strategy.
Compensation and Incentives Programs
The company can establish a more consistent performance review process with an emphasis on performance. “Using systematic approaches such as job evaluations is important for pricing jobs in a way that is seen as fair and acceptable by employees” (Dreher & Dougherty, 2001). This measure can help employees feel valued and send the message that performance will open up new career opportunities. Management can also redesign the entire reward process and create an incentive program for Sales and R&D based on the new corporate sales strategy. This action can help the implementation of the new strategy and can motivate employees to perform at higher levels.
Career Development and Succession Plan
A common characteristic of high-performing firms is a greater commitment to training and career development. Knowledge and skill acquisition will lead to improved firm performance as long as employees are allowed and encouraged to use the acquired knowledge and skills when performing their jobs. Riordan can implement training and effective cross-utilization and cross-training programs to create a reserve of talent that can result not only in improved morale but also increased performance. “When people are able to perform multiple jobs, or are “multiskilled”, they represent a reserve of talent and are more likely to appreciate how their work and output levels affect the work of other employees in jobs related to their own” (Dreher & Dougherty, 2001). In addition, the company should put emphasis on su ...