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Gap Analysis Riordan

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Gap Analysis: Riordan Manufacturing
University of Phoenix

Gap Analysis: Riordan Manufacturing

Riordan Industries currently owns Riordan Manufacturing which has become a Fortune 1000 enterprise. Riordan produces plastics whose main customers are aircraft manufactures, automotive part manufacturers, the department of defense, the beverage bottling industry, and appliance producers. After Riordan changed their structure they have witnessed a slump in their organization’s effectiveness. The following is a gap analysis of Riordan’s current state.

Situation Analysis
Issue and Opportunity Identification
Riordan has changed its strategy from individual sales people who work directly and independently with its customers to sales teams who work together with customers. It has greatly affected its customer relationships. Using teams instead of individuals has also caused a changed in the incentives that employees can earn. They are now based on the team’s performance instead of the individual’s performance. This has caused a lack of motivation from their employees. Research shows that “Most employees prefer to be paid on the basis of individual performance rather than team or organizational performance” (Milkovich & Newman, 2004, p. 22). If Riordan would put more faith in their past and go back to their original strategy using individual sales people and compensation based on sales not team work, it could lower turnover rates and increase employee motivation and performance. Over the last few years at Riordan they have experience a significant increase in turnover levels. Over the last three months, their Research and Development department has lost three of their main employees. When leaving Riordan, the employees expressed that they were unhappy with the pay and incentives. If these departments would increase their salaries based on performance and developed a better incentive program they would be...

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