Riordan Manufacturing Week 6 Problem Solution

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Running head: PROBLEM SOLUTION: RIORDAN MANUFACTURING

Problem Solution: Riordan Manufacturing
Elayne Limon, Bill Loski, Fatima Al-Mohannadi, Allison Pawloski, Daniel L. Knight II University of Phoenix
MMPBL\530
April 23, 2012
Kathryn Adair

Problem Solution: Riordan Manufacturing
In today’s work place employee satisfaction is just as important as it has ever been in history. With employer cutbacks, job eliminations, pay reductions, and business closings employee satisfaction must be at the forefront of employer’s plans to be successful. In the case of Riordan Manufacturing the company has a problem it cannot ignore, employee motivation. Riordan Manufacturing is a global plastics producer that employees 550 people and earns an estimated $46 billion annually. The company has recently made changes in the way it manufactures and markets its products. Declining sales and profits over the past two years have also forced the company to change its sales process and adopt a customer-relationship management system (CRM). After conducting an employee satisfaction survey the HR department has uncovered needs the company must address. Once a Gap Analysis was conducted, the research has revealed the needs to be addressed are employee compensation, reward systems, and training.

Situation Analysis
Issue and Opportunity Identification
In this scenario the organization Riordan Manufacturing is looking at a new approach when it comes to employee satisfaction and compensation. The company has seen many times that the employees were not pleased with the direction of the company. This has led to a decline in employee motivation and increased turnover. One main contributor to an opportunity is employee motivation. This fundamental principle discusses that if employees are not motivated then there will be less work done. The scenario discussed here reveals that employee motivation does not discriminate (University of Phoenix, n.d.). This guiding principle helps us to understand that motivation is an important aspect of a company’s culture. The opportunity that exists is to see what types of motivation the employees need. This will also determine the outcome from the company to see what types of rewards can motivate the employees. As motivation is important, the incentive model is also important. The opportunity shown describes that Riordan wants to keep an incentive model for the company. The employees in this situation would like to be compensated on their efforts (University of Phoenix, n.d.). It is also discussed, that “an individual incentive is tied to the pay of an employee’s extra output” (Dreher & Dougherty, 2001). This benefit to the employees shows that as they are working hard they want to be compensated on their efforts. This commission pay system shows that an employee is motivated by what they are doing in sales. There were some departments that would benefit from this even though they were not in sales. Strategic planning and benchmarking were also used as principles in the scenario. As they were looking at new approaches, they looked at other company’s efforts (University of Phoenix, n.d.). This shows that they are looking toward the industry to see what options they could use for their company. Riordan can use these principles to “see what does this technique do for them and how does it help them achieve their goals” (Milkovich & Newman, 2004) As they use benchmarking techniques, they can see what is working in the industry. Using benchmarking techniques are usually stable within the industry (Dreher & Dougherty, 2001). This can help this organization to offer solutions that have been used in other examples. This can be a way to help the employees understand that the company wants to be a successful business. This can help employees to see the company is taking an added investment in their job skills.

Stakeholder Perspectives/Ethical Dilemmas
There are several stakeholders...
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