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Townsend Rock Industries Company: Compensation Models Proposal

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Updated: Dec 24th, 2020


Every organization needs the environment in which its staff members feel secure and confident to deliver their best performance and focus on acquiring new competencies. At Townsend Rock Industries (TRI), the levels of loyalty among the employees need to be raised to ensure that they excel in their work and contribute to the development of an impressive competitive advantage. Given the need to compete in the global market, the firm needs enthusiastic employees with innovative ideas and high diligence. In order to prompt the specified qualities in its employees, the firm will have to create a system of compensations that will encourage the staff members to focus on the active improvement of the firm’s performance in the global market.

Subsection A: Options for Compensation Models

At present, there are several compensation models that are actively used in the global market and can be of use for TRI as company functioning in the cement market. Among the key frameworks of compensation, one should list the base pay, overtime pay, bonuses, commissions, stock options, and a variety of benefits that may include, but are not limited to, medical, vacation, parental leaves, and retirement options (DeCenzo, ‎Robbins, ‎& Verhulst, 2016). The specified models allow accommodating staff members in the corporate environment in a manner as effective as possible. As a result, the levels of loyalty among employees are expected to grow.

Subsection B: Compensation Models and Benefit Packages

For the employees at TRI to feel especially valued and welcomed by the organization, the company will have to introduce a combination of benefits that will represent it as a multicultural setting with options that take the needs of every company member into account. Therefore, an improved benefit package that includes parental leaves, vacations, dental and vision care, paid vacations, and paid holidays (particularly, religion-specific ones) is required.

The employees may choose between HMO and PPO when considering the benefit package that the company will offer them since the PPO offers more flexibility yet the HMO provides greater security (Fertman, 2015). Thus, the employees will feel that their needs are taken into consideration.

Subsection C: Future Growth and Staffing Needs

Currently, it is more reasonable to invest in the current staff members and encourage their growth rather than increase the turnover rates. Therefore, the employees at TRI will be provided with opportunities to acquire new competencies, train new skills, and learn new information to advance in their area (DeCenzo et al., 2016). As a result, TRI will be able to address the staffing needs by promoting the continuous professional development of its current employees and attracting new ones.


The quality requirements for TRI have risen significantly over the past decade due to the rise in the opportunities that the modern technologies provide. Therefore, it is critical to motivate the staff members to excel in their performance. Furthermore, TRI has a range of stakeholders whose needs it has to meet to maintain a strong presence in the global market.

Exceeding the Expectations of Multiple Stakeholders

To ensure that the requirements of the key stakeholders are met, TRI will need to deploy a combination of two motivation techniques, particularly, financial incentives and the recognition of the employees’ achievements. The identified approaches are aimed at the same outcome of the increased per romance yet use different techniques.

From the perspective of Maslow’s hierarchy of needs, the suggested approach covers both the deficiency needs, or the ones that create the basis for an employee’s existence, and the needs associated with esteem and self-actualization (Morgan, 2016). As a result, the creation of a perfect workplace environment in which all staff members remain content becomes possible. Furthermore, since the suggested approach will allow increasing the quality of the employees’ performance, other stakeholders, including customers and partners, will be satisfied as well.

Performance Appraisal System

An elaborate system of recognizing the staff’s success and efforts is critical to TRI’s existence. For this purpose, one should consider creating the performance appraisal framework that will help maintain the enthusiasm and motivation rates among employees high despite the increase in the demand for quality. Specifically, the introduction of smart tools for evaluating the employees’ efforts and performance will be needed. Specifically, the performance appraisal should include the elements such as goal setting, identification of standards, assessment of outcomes, evaluation of each staff member’s input, summary of the results, and the identification of further goals (Landy, ‎Zedeck, ‎& Cleveland, 2017). Thus, the system of the continuous improvement will be built.

Relevant Motivation Theories: Monetary and Nonmonetary Rewards (Presentation)

  • Maslow’s Hierarchy of Needs: from basic needs to self-actualization.
  • Promotion of a multicultural approach in the workplace setting.
  • Emphasis on both basic and self-fulfillment-related needs (Morgan, 2016).

In order to encourage employees to perform base on increasingly high demands for quality products, one will need to use Maslow’s Hierarchy of Needs. The proposed framework requires recognizing the employees’ needs for both basic commodities and psychological comfort that encourages growth. The specified theory encourages an employee-specific approach toward managing the needs of the company’s staff member, which is essential for an organization functioning in the global market (Morgan, 2016). The theory suggests using both financial incentives and psychological support for personal and professional growth.

  • Adam’s Equity Theory: focus on the process;
  • Inputs: motivation tools tailored to the needs of a particular staff member;
  • Outputs: performance of each individual employee correlated to the needs thereof.

Another theoretical framework that should be used is Adam’s Equity Theory. The proposed framework suggests looking at motivating staff as a process rather than the enhancement of content (King & Lawley, 2016). The theory defines inputs as the tools used by an organization to accommodate its staff members as comfortably as possible in the target setting, while outputs are the staff’s performance outcomes. While making inputs correlate to outputs is the goal of any company, a firm should seek for the perfect balance between the two to meet the needs of its staff.

Communication Plan

In order to convey the essential information to its staff members, TRI will have to use the communication framework based on an open and direct dialogue. It is critical to be honest with the staff members about the changes that the company is experiencing. Furthermore, TRI will have to emphasize that the suggested improvements are aimed at creating a safer and more secure environment for the employees and their personal and professional growth.

An effective feedback system will have to be introduced to the company’s setting. Innovative technologies such as Voice over Internet Protocol (VoIP) communication systems will have to be deployed to maintain consistency and ensure that the conversation is reciprocal (Pina-Ramirez & Davila, 2015). As a result, the feedback of the employees will inform TRI’s decisions and create the platform for cooperation between the company and its stakeholders.


DeCenzo, D. A., ‎Robbins, S. P., ‎& Verhulst, S. L. (2016). Fundamentals of human resource management (12th ed.). New York, NY: John Wiley & Sons.

Fertman, C. I. (2015). Workplace health promotion programs: Planning, implementation, and evaluation. New York, NY: John Wiley & Sons.

King, D., & Lawley, S. (2016). Organizational behaviour (2nd ed.). Oxford, UK: Oxford University Press.

Landy, ‎F., Zedeck, ‎S., & Cleveland, J. (2017). Performance measurement and theory. New York, NY: Taylor & Francis.

Morgan, P. ( 2016). The business student’s guide to study and employability. Thousand Oaks, CA: SAGE.

Pina-Ramirez, W., & Davila, N. (2015). Passing the torch: A guide to the succession planning process. Alexandria, VA: Association for Talent Development.

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