Problem Solution: Riordan Manufacturing

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Problem Solution: Riordan Manufacturing

University of Phoenix
February 5, 2008

Problem Solution: Riordan Manufacturing
The purpose of this paper is to assess Riordan Manufacturing's present dilemmas and offer suggestions that may bring positive conclusions to impending quandaries. This paper will evaluate Riordan's situation, existing opportunities and challenges and conclude with pivotal suggestions that will produce positive outcomes. In addition, via end-state goals, concepts are provided in which Riordan Manufacturing may improve organizational human resource practices that will give Riordan a sustained competitive advantage. Situation Analysis

Issue and Opportunity Identification
In the United States of America the one key issue Riordan Manufacturing is addressing is employee retention. Many comments have been made regarding employee attrition and the cause for this attrition is competitors paying higher wages. Additionally, Riordan's Research and Development Department (R&D) is experiencing major turnover and huge loss of employee knowledge due to attrition. Furthermore, Riordan's employee incentive program is faltering and is a foremost concern with Riordan's management and employees'.

Present sales incentives are structured for individual salespersons' as an alternative for a team approach. "The new philosophy is to initiate changes in business practices that will result in revisions to current sales methodologies of individual sales representatives account management to that incorporates a salesperson, a product-engineering specialist and a customer service representative with support from R& D" (UOP Scenario, 2008). Though Riordan's Sales Department sales department processes have changed, the current incentive/bonus programs are lagging and are not strategically aligned with the new and revised programs that Riordan is attempting to implement.

Riordan has done a small amount of promoting or developing their employees in past years and a key strategic advantage for organizations is to make available the means for employee growth and development. Hence, "…training and development not only helps to attract top performers but will also provide incentive for retention" (Dreher & Dougherty, 2001; p.92). Riordan should look at the possibilities of providing development and training, but such development and training should be provided under a caveat towards the best interest of the company. A key miscalculation in the holistic human resource management initiatives at Riordan is the absence of Riordan's Human Resources Department's influence on the changes concerning the business plans at Riordan. Human resources department presently reports to the finance department and has no formal lines of communication the CEO concerning Human Resource matters. Riordan may need to consider their business structure due to the continuously developing business environment and many Human Resource concerns . Therefore, in efforts for Riordan to realize and gain strategic advantage in the area of human capital, "…a superior human resource management system must be in place" (Dreher & Dougherty, 2001; p.35).

Increased stock price is also an opportunity that may be realized if Riordan Manufacturing can effectively communicate and implement their plans while avoiding some of the negative issues. If investors see some potential in the plan, they may view the current stock price as a bargain resulting in additional stock offerings and purchases. The subsequent stock offerings and purchases will increase value, cash flows and acceptance and momentum for the growth plans. Riordan should only consider this measure for supervisors, managers and directors as an incentive. It should not be made openly available to general staff of public. Stakeholder Perspectives/Ethical Dilemmas

As with any operating organization many stakeholders must be considered when...
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