Problem Solution: Riordan Manufacturing
Oftentimes, organizational change evolves from a strategic shift coming from or in combination with internal and external sources. Internal decisions, such as the own making the decision to change the direction of the business, or what employee will work on which project or offer a new product into the market, are all strategic shifts that can involve be involved in this status change. According to Bateman and Zeithaml (1990), in order to manage these changes effectively, management should follow three steps in implementing organizational change. These steps are diagnosis and identification of the issue, identification of key organizational objectives, and detailed plan for the implementation of the projected changes. If these three steps are followed, companies are able to implement changes in a lateral communication to the employees of that company. When companies venture outside of these three steps, the change or shift in the company does not transmit affectively to the employees involved in that company.
Issue and Opportunity Identification
The initial problem that leads to the problems faced by Riordan begins with the management team. The management team made changes to the way that the company produces and markets their products. This change came about because of declining sales in the business as a whole. In addition to this change the company was forced to establish a customer-relationship management system (CRM). This system allows for the employee to have “an integrated system that is used to plan, schedule and control the presales and post sales activities in an organization” (Ask, 2009) . Creating this system allows for the customers to be serviced by a sales team, this was the beginning of one of the compensation problems in the business. Having a sales team creates the problem of fair compensation. Each employee that... [continues]
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