Riodan Gap Analysis

Essay by rlundayUniversity, Master's September 2010

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Gap Analysis: Riordan Manufacturing � PAGE \* MERGEFORMAT �1�


Gap Analysis: Riordan Manufacturing

University of Phoenix


Gap Analysis: Riordan Manufacturing

Riordan Manufacturing is a global plastics manufacturer with annual earnings of $46 million, producing plastic beverage containers, custom plastic parts, plastic fan parts, and research and development, (Scenario, 2010). Declining sales and uneven profits have driven Riordan to consider a change in overall strategy in its sales, manufacturing and sales processes. Riordan's managers have noticed that there is a decline in morale and work ethic, causing an increasing employee turnover, and lowering morale. Riordan's management is attempting to address the growing dissatisfaction with employee development, benefits and pay scales, shown in survey results, fearing dissatisfied employees will find employment elsewhere.

Situation Analysis

Issue and Opportunity Identification

There are challenges that must be overcome in order to accomplish the company's organizational goals, to include overcoming employee job dissatisfaction, which declined as part of Riordan's restructuring process, and increasing employee retention.

Riordan also needs to overhaul the currently failing reward system into an effective system that aligns the organization's strategy with compensation and incentive packages. There are several issues to include their policy regarding promotions, differing views within Riordan regarding compensation, aligning the reward and compensation systems with the business strategy, and the fears and concerns regarding pay scale and the loss of key employees.

One issue that should be addressed is the differing views within Riordan regarding compensation or "all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship," (Dreher & Dougherty, 2001, p. 77). It is important that Riordan's management understand that their view of adequate compensation is entirely different than the views of many of their employees. Management often looks at compensation as expenses...