Gap Analysis Mba530

Gap Analysis: Riordan Manufacturing

Organizations of all sizes have been dealing with a growing problem. Employee morale and high turn over is an industry wide problem. No matter how large or small or what field you are in companies are struggling with these two issues. Employees are always looking at their compensation as well as job satisfaction. When employees are no longer happy at their jobs they start to look. They look at their over all compensation package and salary as what is keeping them working. Most people work because they have to. Pay, benefits and what the company dose for them is what thrives them to continue to get up every morning and go to work.

Every industry has this problem and the way they will stop having poor employee morale and high turn over is by evaluating their benefits and pay grades. Some companies that have been around for a while are still on their old pay system. They need to look at the job description, area of living and what the standard industry is paying and come close if not right at that number. Employee morale dose not just affect the employee, it also affects the work they are doing. That is why it is essential for companies to look at their compensation packages and see what they can do. This paper will touch on a company called Riordan Manufacturing which id currently suffering from low employee morale and high turn over of good employees. You will see what factors are causing it ad what they are looking at doing to improve employee morale and retain employees.

Situation Analysis

Issue and Opportunity Identification

Riordan Manufacturing is experiencing a time of low sales, low revenue and high turn over. The leadership team and management are working on how to fix these issues. The first issues affecting Riordan has a decline in sales. Over the past two years Riordan has seen a decline in sales, when they started to notice this they saw a chance to develop a new program called the CRM. CRM stands for customer relations management. What they did was change the way the sales person worked with the public and the client. They developed teams including a sales person, product engineer and a customer service specialists. This is an advatage for the customer as they have a specialize team focused on them. They realized they needed to develop as a result of specialized training and the possession of prerequisite aptitudes, (which in turn are) a relatively stable attribute that indicates a person’s general pattern of performance,” (Dreher & Dougherty, 2001, p5).

The second issues around d them was uneven profits. What they needed here was “A strategic perspective focuses on those compensation choices that help the organization gain and sustain competitive advantage." (Milkovich, 2004, p.35) They had the opportunity to restructure their sales and marketing plans. They did this by creating the CRM teams above.

The next two issues are similar that have been causing Riordan the problems they are having and those are low employee morale and high turn over. Both these situations are similar in the fact that when an employee is non-motivated at work they morale is low and they are no longer satisfied at work or with what they are earning. They are then more likely to start looking for a new job that will have better compensation and that will satisfy them. Riordan has the opportunity to prevent this in some positions by looking at the pay salaries, job descriptions and coming up with better pay grades and some incentives to retain employees as well as motivate the sales team to want to go out and bring in new customers. Most people work harder when there is something extra in it for them, therefore by offering incentives that will increase their pay it will also raise the uneven sales and bring Riordan back to a motivated company.

Stakeholder Perspectives/Ethical Dilemmas

The stake holders in this company vary. You have the leadership team, Michael Riordan and then you have the employees. In each group they all have different rights, values and interests. Michael Riordan has a lot at stake since he’s the founder of the company. If they company fails then his name is dragged down. He owes it to the leadership team, the board and also the workers to make sure he’s acting in the best interests to them as well as himself. He needs to make sure his leadership team is respecting the values of the company and the employees in all the decisions they are making.

The leadership team they each have a different interest. Kenneth Collins as the Senior VP of R& D needs to ,make sure that his decisions in regards to development are good for the company and that his employees are on board and that their values of what they are doing are not being ignored. Hugh McCauley as COO has the interest in that he keeps a job but that as a company they are following policy and they are looking out for the employees. Charles Lacy as VP of Sales has the interests that his sales people are making money so the company stays in business. He also has the responsibility to make sure he’s fair to his sales people and providing them with what they need to do the job. Maria Trinh as the Chief informational officer needs to make sure her department is doing their part to keep the company running and make sure they are up to date. She also owes her staff fair compensation for the work they do. Yvonne McMillan as director of Human Resources needs to make sure she’s hiring people with good values fort eh company as well as making sure the employees that are there are being treated fairly. Dale Edgel as the Chief Financial Office needs to make sure his group is following all polices and government requirements as well as making sure the company continues to make money.

The employees need to make sure that the work they are doing is helping the company to make a profit as well as make sure they are doing everything they can to keep the company running. They also have values of their own to make sure they are meeting. If they feel their work is not appreciated or being compensated in a fair manner they need to make sure they bring these issues up to their managers. If they don’t then they will have low morale the work will suffer and the whole company will suffer from it.