Growell Corporation Growell Corporations has introduced the flavour of the season - "Employee Stock Options" for those in the Middle - Management and above. The company decided that these options will be given to individual employees at the same grant price but at varying quanta. The quanta were grade, performance and centrality. The grade was the level of the employee and performance was to be determined on the basis of the evaluation by the Head of the Department on a 5-point scale. Centrality was defined as the cost of impact on the company's bottom-line, if the position were rendered vacant for any reason. It had two dimensions - one is how close the position is to the direct operations of the company and the other is how difficult or otherwise it is to have a replacement.

Some employees felt that both performance and centrality were subjective. Particularly, some felt that in the same grade there should be no difference between those who are "central" and those who are not. The HR department holds the view that the company has to make this distinction, as otherwise it will be a poor policy of across-the-board benefit. It believes that such a distinction is being made in all progressive corporations. That those rated less "central" than others should not take it as a personal indictment but as to the market conditions and nature of skills - nothing more.

What should be the next step for the company in dealing with this issue.