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Category: Business

Autor: anton 05 May 2011

Words: 3521 | Pages: 15

Running head: PROBLEM SOLUTION: RIORDAN MANUFACTURING

Problem Solution: Riordan Manufacturing

University of Phoenix

Problem Solution: Riordan Manufacturing

As Riordan Manufacturing will strive to meet the competitive needs of the employees within the company and prospective job candidates they will need to allure the individuals to the company. In order to do this Riordan will need to analyze the Human Resource Management (HRM) policies and procedures that are put into place that will affect and influence employee behavior, attitudes, and performance (Noe, Hollebeck, Gerhart, Wright, 2004). Riordan will need to create an incentive package that will give the business a competitive advantage and aid in the recruitment of top performers. The problems are the unique difficulty of catering to the vast majority of employees and their distinct and unique needs in the benefits arena. Employees have varying degrees of needs based on the different stages of their lives and the stages of there loved ones lives that will further complicate the development of a comprehensive benefit package. The importance of a comprehensive benefit package is that it can motivate employees to perform at higher levels and for longer periods of time within the business.

Riordan Manufacturing Inc. a plastic injection molding company has grown over the last several years. Dr. Riordan whose initial focus was on research and development and the licensing of its existing patents founded the company, but overtime his focus shifted. In 1992 he purchased a manufacturing plant from Pontiac, Michigan and he expanded his company into the production phase. Then in the year 2000 the company opened an operations unit in China (University of Phoenix, 2003). Now the company employs 550 people. Due to the growth and development of Riordan the company will have to analyze the relationship between motivation and performance; identify the components of effective job retention and career development; explain the concepts of total rewards; assess the impact of reward systems on organizational performance, and compare different perspectives on human behavior and motivation and analyze how these translate to organizational reward systems. Currently the company is attempting to consolidate the customer information to provide more personalized customer service.

The importance of analyzing the motivation in relationship to performance will help the company increase productivity and decrease employee turnover. The two different types of motivation are intrinsic and extrinsic. Intrinsic motivation has the following characteristics: they desire to improve processes; take satisfaction in problem-solving; and they are more satisfied with team based work or would be more apt to find this work enjoyable. Extrinsic motivation characteristics are that these individuals are motivated by their individual performance and finds greater satisfaction in leading or managing independently. Extrinsic individuals will prefer a more individualized reward such as pay based off of performance (Dreher & Dougherty, 2001). Once you realize how an individual is motivated then you can frame the type of reward that you give based off of their motivational style to increase employee satisfaction, which in turn decreases turnover due which leads to better productivity. Current employee recognition programs at Riordan include: the outstanding employee reward, employee suggestion program, and seniority awards. The outstanding employee reward is issued one time a year to an individual who was nominated by his peers who performed above and beyond job duties, showed a high level or teamwork, and modeled respect for diversity. The employee suggestion program is when an employee can make suggestions on products or the work process and when the suggestion is put into place the employee who suggested it received $25.00. Seniority awards are based on the length of time an employee has worked with an employer. These awards are given around the one-year mark, the fifth year mark, the tenth year mark, and the 20th year mark. The company also offers a foreign service premium, home visit leave, relocation benefits, educational benefits and assistance, housing allowance, and cost-of-living adjustments.

When dealing with employee performance in the workplace upper management should realize the direct correlation between the motivation they are giving to employees and the performance that the company is receiving as a result. If an employee has job dissatisfaction they will typically exhibit some of the following signs of behavior: poor dispositions; the thought process that the certain task that they had been at their job is now to complex and requires exertion; exhibiting negative behaviors; behavior change; physical job withdrawal; and psychological withdrawal. It is imperitive to prevent the withdrawal behaviors as indicated above to promote job satisfaction in the work place. Job satisfaction is important because it is a pleasant feeling resulting from the perception that one’s job fulfills or allows for the fulfillment of one’s important job values (Noe, Hollenbeck, Gerhart, & Wright, 2003).

Career management programs offer employees the ability to move up the career ladder on equal footing instead of one gender, sex, race, or ethnicity being favored over another. The different types of career management programs are succession planning, skill inventory; job rotation; and assessment centers. Succession planning is when teams of managers actively meet together to identify individuals who can be replacements for key positions within the company and discuss the individual performance based on skills, experience, strengths, weaknesses, and future needs. Skill inventory is a tool used by upper management to identify junior managers who are ready for new and challenging roles (Dreher & Dougherty, 2001). The process of identify new junior managers consist of using a computer to identify employees in relation to their education, work experiences, competencies, and career interests. Job rotation is when a new employee is introduced to a variety of short-term positions to give them the opportunity of meeting several managers and obtaining several skill sets. Assessment centers are where employees can go to acquire new skills. Then the company can use the assessments of the new skills to assess the strengths and weaknesses of each employee’s performance that appears in the assessment report. There are several types of career system enhancing opportunities for managers and professionals such as: succession planning, skill inventories, job rotation, special task forces, career pathing, career development workshops, assessment centers, competency ratings, expanded performance feedback, designated managerial advisers, and project teams (Dreher & Dougherty, 2001). The training and development give by Riordan includes: new hire orientation and the six sigma for all production, shipping and quality employees, and employees who are in management positions are required to attend workshops so many times per year. There is also an educational reimbursement assistance that helps students pay for college.

Total rewards are the entire package that a company offers an individual contingent to their employment. Total rewards include: base pay, merit/cost of living pay, short-term incentives, long-term incentives, income protection, work/life focus, allowances, recognition and status, employment security, challenging work, and learning opportunities. The base wage is the cash compensation that an employer pays for the work performed (Milkovich-Newman, 2004). Base wages are typically reflecting the value of the work given by an individual and does not reflect the attributable differences. Merit pay and cost-of-living increases are based off of changes in overall cost of living or changes in skill levels. Short and long term incentives tie pay directly with performance. Income protection provides a safety net for wages and or benefits if the employment should be terminated. For example of income protection this would be COBRA health insurance and unemployment income. Work/life focus helps the employee balance home life and work life responsibilities. These responsibilities can include the vacation, counseling, planning, referrals for services, and work arrangements, which include telecommuting, nontraditional schedules, and non-paid time off. Allowances are given to an employee when there is a short supply in the community for example housing. Reward systems can have a positive impact on an organization. When dealing with labels in companies one must realize tat the company perception may be convenient for describing the situation but can also be misleading.

Riordan Manufacturing is a major player in the plastic industry. In remaining a vital competitor the company will need to analyze whether they feel like the employee’s motivational level is a good match with the employer’s type of employee characteristics that it would like to see. Motivation can be a very powerful tool in aiding the low income in the community. Riordan Manufacturing Inc. a plastic injection molding company has grown over the last several years. Dr. Riordan whose initial focus was on research and development and the licensing of its existing patents founded the company, but overtime his focus shifted. In 1992 he purchased a manufacturing plant from Pontiac, Michigan and he expanded his company into the production phase. Then in the year 2000 the company opened an operations unit in China (University of Phoenix, 2003). Now the company employs 550 people. Due to the growth and development of Riordan the company will have to analyze the relationship between motivation and performance; identify the components of effective job retention and career development; explain the concepts of total rewards; assess the impact of reward systems on organizational performance, and compare different perspectives on human behavior and motivation and analyze how these translate to organizational reward systems. Currently the company is attempting to consolidate the customer information to provide more personalized customer service.

Currently Riordan Manufacturing has a pay system that is based on seniority and not performance therefore, the employees who have been at the company the longest get paid the most and those there the shortest get paid the least. Under this seniority program the company fails to give yearly evaluations and employees often do not know how they are performing their jobs. When determining pay rate the human resource division will need to take into account the several factors from the current economy is which the business is located and state and local laws.

Obtaining and keeping highly skilled and motivated workers require companies to think outside of the box and offer competitive and resourceful reward and compensation systems to let employees know that they value their relationship. The cost of reward programs can become highly overwhelming which is why some businesses such as Riordan Manufacturing do a patchwork kind of approach. These approaches are not sufficient enough to lead to long term results because they are not aligned with the companies vision and goals therefore they will need to be overhauled. By aligning your benefits and compensation package a business can gain competitive advantage to attract the more highly skilled workers. In order to successfully achieve this goal the company will need to make the corporate goals in alignment with the benefits and compensation package, the company must design a low-risk and low-cost rewards program to drive employees, implement some sort of open door policy to initiate a more open communication with employees, and the company must identify performance standards to recognize the high performers.

The current benefits at Riordan Manufacturing include: health insurance for employees and their dependents; dental insurance for employees and their dependents; life insurance for employees; flexible working schedules, when approved by individual managers or teams; 401(k) savings program, with a company match; vacation (schedule varies with seniority); paid holidays; and educational assistance/tuition reimbursement. The company also offers a flexible benefit program in which the employee can utilize a childcare reimbursement account and a medical reimbursement account or flexible spending account. These types of accounts are pretax and the money has to be allocated for the above areas only. Currently at Riordan Manufacturing there are no effective retention program or career development program aimed for employees who wish to move up the management ladder. This should be looked at more closely for the comprehensive benefits packages.

In order for Riordan Manufacturing to attract and maintain a higher quality of employees the company will need to create an innovative and attractive benefits plan. The benefit plan will should not allow for attrition of employees but career development and long-term goals. The comprehensive benefit package will include the annual performance evaluations continuing. If further evaluations are needed to bring performance up to par then the evaluations should be done quarterly with no pay incentive due to the poor performance standards of the past. Once an employee is brought up to speed with the rest of the group then they can begin receiving yearly performance evaluations and pay incentives. The compensation for employment will be above average for the benchmarked job in which the area is located to attract and retain qualified employees. The individual will also have the opportunity to receive variable outside of the team performance. Under the competitive benefits package stock options will become available to employees to create a sense of ownership within the organization. The company will offer more than the benefits required by law to show employees that they value their employees to go above and beyond the governmental standards and by-laws. The company will offer health insurance for employees (paid at 80%) and their dependents at a reduced cost. The company will offer dental insurance to employees paid at 80% for the entire family. The life insurance policy should be crafted much like the state employees life insurance policies with the age and salary range of the employees being taken into account. Flexible work schedules should be utilized when allowable but staffing comes first. The flexible work schedule will need to be approved by management two weeks in advance except in rare instance of emergency situations when the manager will make the final decision. Employees of Riordan Manufacturing will allowed to invest in a 401(k) savings program upon one year of employment with a $25 company match per month. Vacation is given as follows:

Employment Status Entitled Days Entitled Hours Maximum Accumulated

Part-Time Avg. # of hours and days worked in a week over the previous year. Not Applicable 6 days is max.

Full-Time XXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXX

Immediately upon hire Up to 7 days (1 week) 40 Hours 40 Hours

3 Completed Years Up to 12 days 96 Hours 96 Hours

5 Completed Years Up to 15 days 120 Hours 120 Hours

10 Completed Years Up to 25 days 200 Hours 200 Hours

Any unused vacation pay can be contributed to a 401(k) plan. This is to provide an attractive benefit for those employees who have to work in high periods of demand so they do not lose their vacation time they earned (Aspen Publishers, 2006). Upon termination of employment the employee will be given severance pay that will include the unused vacation days for the years of employment. The paid holidays will be given the same as the federal government. There are ten (10) paid Federal holidays: New Year’s Day; Martin Luther King, Jr. Day; Presidents Day; Memorial Day; Independence Day; Labor Day; Columbus Day; Veteran’s Day; Thanksgiving Day; and Christmas Day this information was provided by www.usajobs.gov. The total number of employee sick days given to full-time employees will be 11 days annually based off the industry average from www.salary.com. Part-time employees will be eligible for discounted medical and 5 days sick annually. Educational assistance and tuition reimbursement will be paid at 100% as long as it is corresponding to employee’s job title or if the employee is currently enrolled in the businesses career advancement program all educational fees will be paid at 100%. All other tuition reimbursements and educational assistance requests will be looked at on an individual basis to verify the realm of educational experience that the employee is receiving. This does not automatically disqualify employees for educational assistance if their current job does not correlate to what they are attending continuing education courses in their college courses. These will be looked at on an individual basis because we value education and would like to provide tuition assistance when deemed appropriate. Other benefits given to workers at Riordan Manufacturing will include a reduced cost for childcare at a partnered childcare facility of 30%; a flexible spending account for medical and childcare expenses; and discounted ticket prices to local area events and shows.

Riordan Manufacturing is currently mishandling the comprehensive benefits package that will lure prospective new employees to the industry and allow they to retain the current employees for a longer period of time. The ideal end state would be for Riordan Manufacturing to put the comprehensive benefits package together and for employees and tweak the benefits for optimal performance and longevity. Riordan Manufacturing can perform these required tasks by benchmarking other companies of its size and structure to see what they are offering employees in the benefit division. The company can use this information as a starting point in which to grow from. Riordan Manufacturing can also survey the current employees to see what is important to them in a benefit program and how they weigh the important deal breakers for benefits. What can they live without? What can they not live without? This type of information would be beneficial to them in retaining the already trained staff in which they employee. The company could also begin the implementation of an employee valued culture where employees feel as if what they do everyday matters and is worth coming to work for to prevent burnout later on. Other programs that would benefit the employees and the company will include career advancement programs to train future company leaders from earlier on and provide them with a series of levels that they can accomplish before they can accomplish the much desired management position. Career retention programs will also aid in retaining employees and preventing and realizing employee burnout through education and business activities.

Riordan Manufacturing is taking a proactive move toward a new customer service approach to increase sales and growth opportunities for the company. Now the company needs to take proactive moves towards making employees happy to retain qualified candidates to make their dream a reality. If employees do not feel valued and cared for in a business they are not going to stick with the job for very long. That is why it is essential that Riordan Manufacturing create a comprehensive benefit package program that will address the diverse needs of the population in which they serve (their employees). Riordan Manufacturing can achieve the results in several ways they can benchmark other companies such as themselves in the area in which they live; they can go with the industry standards; or they can create an aggressive and highly motivating new plan that will attract and retain employees.

References

Aspen Publishers (2006). The Insiders Guide to Plan Design, Administration, Funding and Compliance: 401(k) Advisor. Volume 13, Number 11.

Dreher & Dougherty (2001). Understanding Behavior in Organizations. The McGraw-Hill Companies.

Milkovich-Newman (2004). Front Matter. The McGraw-Hill Companies.

Noe, Hollenbeck, Gerhart, & Wright (2003). Assessing Performance and Developing Employees. The McGraw-Hill Companies.

Table 1

Issue and Opportunity Identification

Issue Opportunity Reference to Specific Course Concept (Include citation) Concept

Effectively motivating employees. Intrinsic motivators: value team work and streamling company processes Managers should educate themselves on the types of motivation and how it affects the other employees. The two different types of motivation are intrinsic and extrinsic. Intrinsic motivation has the following characteristics: they desire to improve processes; take satisfaction in problem-solving; and they are more satisfied with team based work or would be more apt to find this work enjoyable. Extrinsic motivation characteristics are that these individuals are motivated by their individual performance and finds greater satisfaction in leading or managing independently. Extrinsic individuals will prefer a more individualized reward such as pay based off of performance (Dreher & Dougherty, 2001). Intrinsic and Extrinsic Motivation

Table 1

Table 2

Stakeholder Perspectives

Stakeholder Perspectives

Stakeholder Groups The Interests, Rights, and Values of Each Group

Employees Value equal pay, equal total rewards system, and Value seniority

Customers Value service and convenience

Shareholders and Management Value profits and growth

Table 3

Analysis of Alternative Solutions

[Click twice on table to change, see instructions on next page. The alternatives and their ratings as well as the goals and their weightings shown below are for illustrative purposes; you should enter your own. Delete this paragraph when done.]

Table 5

Optimal Solution Implementation Plan

Deliverable Timeline Who is Responsible

Create New Comprehensive Benefit Plan 1 Year Human Resources and Management

Decrease Employee Turnover 1 Year Management

Increase in long-term employees 5 Years Management and Human Resources

Increase In Highly Qualified Staff 1 Year Human Resources/Personnel

Increase in Productivity 1 Year Entire Workforce

Table 6

Evaluation of Results

End-State Goals Metrics Target

Riordan Manufacturing will increase sales and productivity. Increase in sales and decrease in losses One Year to Two Years.

Increase Employee cultivated culture Measure of employee happiness through survey. One Year.

Increase customer service. Measure of call back complaints in retrospect to previous years and customer surveys. Immediately

Increase Qualified Staff Degree obtained or years of service measured against previous years. Yearly.

End State Goals

End-State Goals

Riordan Manufacturing would like to see turnover rates decrease.

Riordan Manufacturing would like to see career enhancing employee benefits to their employees.

Riordan Manufacturing will implement effective retention tools to slow the turnover rate within the company.

Riordan Manufacturing will offer more career enhancing systems to reduce employee turnover and increase skills sets and productivity.

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