University of PhoenixMBA 530: Human Capital DevelopmentRiordan Manufacturing is a global plastics producer that is currently facing problems. Since the adoption of the changes made by Riordan in response to declining sales, they have had difficulty in retaining employees and maintaining satisfactory levels of employee morale, motivation, and overall job satisfaction. In order to raise these levels and increase profits, Riordan must identify the underlying issues behind these problems for all their different employee demographic groups and alter its processes and systems in order to address these problems.
This paper analyzes the current state of Riordan Manufacturing and identifies pending problems and possible opportunities. Other companies are benchmarked to provide Riordan with examples of successful practices that were used in similar situations, which they can possibly simulate. This paper provides a problem solution proposal that will give Riordan the best possible suggestion for achieving their desired outcome.
Situation AnalysisIssue and Opportunity IdentificationRiordan Manufacturing, Inc.
is a global plastics producer and a leader in the field of plastic injection molding. It has projected annual earnings of $46 billion and its four facilities employ 550 people (Riordan Scenario, 2008). Sales and profits over the past two years have been declining and as a result, Riordan has had to make many organizational changes. They have adopted a customer-management (CRM) system and have changed the sales strategy of using single salespeople to using customer-focused sales teams.
The organizational changes have resulted in an increase of employee turnover and a decrease in employee morale. An annual employee survey that was recently conducted revealed a noticeable decline in overall job satisfaction and satisfaction with compensation and benefits and personal opportunity. In order to increase profit and retain key employees, Riordan must develop processes to enhance motivation in their employees and increase morale.
The future success of...