Riordan Problem Solution

Essay by rlundayUniversity, Master's September 2010

download word file, 16 pages 0.0

Problem Solution: Riordan Manufacturing � PAGE \* MERGEFORMAT �19�


Problem Solution: Riordan Manufacturing

University of Phoenix


Problem Solution: Riordan Manufacturing

Riordan Manufacturing (Riordan) 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. The annual employee survey indicated that employees are dissatisfied with the current reward system as well as benefits and overall satisfaction.

To analyze the issues in this survey, $50,000 has allocated by the company to hire an independent human resource (HR) consultant who presented a proposal to redesign Riordan's compensation and reward system. One proposal was to prepare a salary survey to determine current market positioning and adjust the salaries of the company's positions based on the results of the survey. Another proposal is an incentive system for sales and research and development based on the company's change to adopt a customer-relationship management (CRM) system. A performance appraisal process was also proposed to be developed to ensure clearer alignment between business strategy and performance rewards, (Scenario, 2010).

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...