Running head: PROBLEM SOLUTION: _ Riordan Manufacturing CorporationProblem Solution: Riordan Manufacturing CorporationMBA 530Problem Solution: Riordan Manufacturing CorporationLife is about give and take. When the balance between "give and take" tilts either way, the fabric of harmony is disrupted resulting in dissonance. An organization or a company has to be aware of this natural law governing human nature. An employee gives knowledge, hours, and insight to an organization. In return, organization pays an employee for the same. Incentives and rewards are a two way sword. It can work as a magnet to keep an employee or can be the very reason for employee dissension. How well dollar and non-dollar incentives are systemized to keep an employee happy can decide the fate of an organization in a long run.
During the course of this paper, we will try to evaluate rewards system with one company in mind; Riordan. Rewards system depends on various factors such as alignment with organizational strategy, internal equity, external competitiveness, employee motivation, and compliance.
We will start with situation facing Riordan.
Situation Background (Step 1)Riordan is a manufacturing company which produces plastic. It has over 550 employees and its annual earnings are close to $46 million. It produces plastic in its three plants. Riordan customers comprise of automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers.
Riordan is facing typical organizational situation. Riordan as a manufacturing company have employees with different motivational and strategic needs. It has employees ranging from manual laborers, skilled traders, administrators, professional, technically savvy employees, sales and managerial staff. As the varied employee inventory suggests, they represent diverse educational backgrounds, ethnicities, family situations and varied working mind-set.
Riordan has been overhauling the way it manufactures and markets its products. Some of the factors such as declining sales...