January 14, 2012
Proposal Plan Part III
The purpose for the organization Riordan Manufacturing is to stay put in a dynamic, self-motivated and energetic business environment. Riordan Manufacturing is a successful business looking to progress overall presentation and place the company for potential expansion. In order for this to follow through, a total rewards program needs to be created. The incentives and compensation plan, must connect with the goals of the organization. A solid rewards program will build motivation in the work place. As the text states, " the notions that rewards are means to motivate employees assuming that the rewards are distributed fairly. Rewards seem to be part of many different perspectives in motivation." (Shani & Chandler, 2009, p. 8)
The most important part are the employees in this organization, and sadly the motivation is not up to par. Employees who lack motivation, insinuates that employees are not receiving proper rewards. Instead of management focusing on only one specific part of a department, they should rather work together towards a solid vision for the business. Presently, there is room for opportunity, to actually analyze the Human Resource Management system and see what are the problems which are leading employees to show lack of motivation. (Riordan Manufacturing, p.2) Through various research, employees and outside sources, especially Human Capital Consulting firms, believe that financial compensation is lower than market value. Employees are also not comprehending how pay intertwines with job performance. 2003 to 2004 surveys show that employees think that pay connects to seniority. (Chen & Hsieh, 2006, p.13)
Adding to standard compensation, individual rewards are not well connected to performance. For example, departments like IT and R&D focus the sales force and rarely see no return. The lack of proper positioning for financial compensation and work...