Question

CASE C: Rewards at Graniterock Graniterock utilizes a number of strategies to recognize and reward performance. Graniterock provides materials to the construction industry, including products such as asphalt, concrete, and building materials. The US-based company employs 750 people. The company utilizes both financial and nonfinancial incentives. Employees earn bonus pay of as much as $1,000 for specific performance achievements that require an effort that go “above and beyond” normal job expectations. Several nonfinancial incentives are also utilized, such as a letter from the president along with cash rewards. The company holds regular events called “recognition days” where employees give presentations before the CEO, executives, and coworkers about improvements they have made on the job. This gives employees the chance to receive credit in a highly visible manner, directly from others in the company. As part of an emphasis on improvement, employees continually seek better ways of handling processes, and about one-third of all company processes are changed each year as a result. The company publishes stories about special efforts in a weekly newsletter. Supervisors also utilize rewards on a day-to-day and less formal basis, such as providing lunch to a group of employees who are putting forth a strong effort on a large job pouring concrete.

Question: 5. Assess the contingent pay plan of Graniterock. How were rewards allocated? Did they help improve employee motivation and performance? Recommend ways to make rewards work.

Answer 1

The pay plan provided by the Graniterock to its employees is a solid and effective approach towards an efficient motivational and encouragement tool. As the benefits are both financial and non-financial methods for improvement of employee satisfaction as well as productivity of the firm simultaneously. According to the Maslow's hierarchy of needs both monetary as well as non-monetary are involved to cover most of the employees' needs and requirements. These requirements, in turn, give rise to the encouragement of achieving personal and professional goals and satisfaction. The monetary rewards directly help in influencing the wide range of employees in any firm while for the longer term and respective career prospects, the benefits such as appreciation letters, room for discussion and meet with higher executives and professional of the firms are encouraging. However, there is no silver bullet of success in the corporate world, still, the above-given approach by the firm check almost all the major contributing factors of approach towards a successful journey. Few of the changes that could be accommodated with the current arrangements are given as the following:

• Introduce a role swap initiative in the firm. This will not only diversify the skill sets of the employees but will also help in appreciating other employee jobs and their roles.
• With the subsidiaries and merged firms, create opportunities of the employee or team exchange programs to keep the role exciting for the young and energetic people.
• Introduce the benefits of the partnership with third party firms for vacations or sports outings with teammates which will boost the reward morale among the peers and firm.

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