Problem Solution: Riordan Manufacturing

Topics: Human resource management, Executive compensation, Employment Pages: 11 (3104 words) Published: September 19, 2011
Problem Solution: Riordan Manufacturing
This paper will be an analysis of the issues currently affecting Riordan Manufacturing. Riordan is facing an overall issue with low employee morale and motivation for several reasons. Changing its business strategy to team sales and support versus individual sales and support left Riordan with a compensation package not aligned with rewarding a team strategy. Desiring to remain a top player in the market Riordan needs to address several issues with performance review analysis and training implementation. An analysis of stakeholder perspective and ethical dilemmas, goals, mitigation, and implementation of alternative solutions for the problems facing Riordan will be discussed. Situation Analysis

Issue and Opportunity Identification
When Riordan adopted the Customer-Relationship Management System it changed how their customers were served; meaning that customers would no longer deal with a one on one sales person but serviced by sales teams. Riordan adapted this system because they felt that team sales approach would improve overall sales (University of Phoenix, 2011). When Riordan made this change they also started to see a change in the employee behavior. Riordan noticed that their employees no longer appeared to be motivated which affected their job satisfaction and Riordan’s turnover rate. The change to the Customer-Relationship Management System was needed to better serve customers, but Riordan failed to realize the impact the change would have on the HRM practices and compensation package offered to its employees. Riordan Manufacturing, with the help of Barbara Masterson, a senior consultant with Human Capital Consulting, understands the employee issues plaguing motivation and are creating solutions (University of Phoenix, 2011). Aspiring to be the top manufacturer in the market Riordan has recognized changes the organization needs to make to address current employee issues. Stakeholder Perspectives/Ethical Dilemmas

The employees are stakeholders because they seek high wages and favorable working conditions. Employees also need job security and manager accountability. Customers are also stakeholders because they seek fair prices, integrity, and honesty from the company. Investors are also stakeholders; they require honesty, integrity, and accountability from Riordan Manufacturing. Riordan’s main stakeholders are the employees, owners (shareholders), and customers. Each of the stakeholder groups demand honesty, fairness, and respect. The employees need honesty in what is happening with morale, sales slump, the economy, and the salary. Problem Statement

Riordan Manufacturing aspires to be the leader in the manufacturing marketplace. When a customer or potential customer is looking for someone to handle their manufacturing needs Riordan desires to be the name that pops in their minds. As well as wanting customers to quickly desire the organization, Riordan also aspires to be a top desired employer in the industry. Recruiting and sustaining the best talent brings innovation and creativity competition cannot attract. Currently a change in business strategy, along with internal communication issues, has caused the organization to re-evaluate changes that will help the organization achieve its goals (University of Phoenix, 2011). Riordan will conduct an analysis of current HRM processes to update and develop better practices for improvement in communication and employee morale. A review of the current compensation package, along with a market analysis of compensation totals, will be conducted to ensure competition is in alignment with business strategy. Top notch training and career development programs will be created and implemented bringing employee investment and “buy-in” to a higher level. End-State Vision

Riordan Manufacturing is the employer to a team of 550 employees. Riordan is also currently the most well-known manufacturer in its industry (University of Phoenix,...

References: Compensation Today. (2010). Why Develop a Competitive Compensation Plan. Retrieved from Performance Metric System. Retrieved from
Ward, S
they can also boost morale and motivation A pay for performance plan is pay based off of individual and organizational performance (Milkovich&Newman,2004)
Pay for performance plans
Compensation overhaul Performance Metric system-April 16, 2012 4 months
Training and Career Development Program Human Resource and Finance Dept.- May 16,2011 3 months
Personnel Evaluation Performance Metric system-July 16, 2011 4 months
Employee Surveys Human Resource Dept-October 16, 2011 (next survey) Every 12 months
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