Gap Analysis: Riordan Manufacturing

Running head: GAP ANALYSIS: RIORDAN MANUFACTURING

Gap Analysis: Riordan Manufacturing

University of Phoenix

Gap Analysis: Riordan Manufacturing

Riordan Manufacturing is experiencing challenges with issues which are leading to employee dissatisfaction. "By improving decision making, knowledge management, employee needs and coordination, workplace communication has a significant effect on organizational performance." (McShane & Ginlow, 2005). Riordan Manufacturing needs to consider all possible issues and motives to ensure that the best decisions are made with regard to their company, their employees and their workplace. Dissatisfied employees and declining sales are pushing Riordan Manufacturing to strategize and evaluate the company in order to retain key employees and also grow and regain market share. In order to do this, there are issues that need to be addressed and dealt with. Riordan Manufacturing is trying to determine what their primary issues are how they can focus and change the reward system and what needs to be done to retain their key employees.

Situation Analysis

Joe Lee, CEO and chairman of the board of Darden Restaurants, Inc., the largest casual-dining restaurant company in the world is quoted saying: "I have a lot of thoughts about management, but at the core of my thoughts is to operate with integrity and fairness. Treat people fairly and give them an environment that they can work in and trust. If you do that, you then can take care of your business objectives and your employees' needs and everybody can win." (Kreitner & Kinicki, 2004).

Issue and Opportunity Identification

One of the largest issues facing Riordan is their lack of agreement about primary issues. Each of the senior management feels they know the solution to the problems they are facing, which is to "throw" money at their employees. According to the survey completed by the employees at Riordan, they feel that "the overall package is good" and that there is a good culture at Riordan. Some of the major issues that were identified by the employees are:

Ð'* Pay is tied to seniority more than performance

Ð'* Performance reviews don't always happen

Ð'* Few opportunities for training or advancement

Ð'* Not enough recognition for good performance

Ð'* Promotions (when they happen) are based on politics

Ð'* Rewards are not always connected to company strategy

Ð'* The system at Riordan is secretive

Ð'* Pay seems to be below market in some cases

The employees also give direction on what they want and the very first on the list is to feel valued. They want to have opportunities for careers, effective coaching and feedback, along with development opportunities. "Employee behavior and effectiveness are influenced by ability, motivation, and opportunity." (quote text). Riordan has very qualified and experienced employees, but as far as motivating their employees and providing different opportunities for both advancement within Riordan and personal growth is not happening. "Motivation is the [employees] willingness to exert effort in a particular way." (quote text) McClelland proposes a theory for motivation, which focuses on three needs for any successful organization. These motivational factors are: the "need for achievement, the need for affiliation and the need for power." (quote text) McClelland views power motivation as "an essential attribute for explaining managerial effectiveness." (quote text).

Opportunity is quite distinct from ability and motivation. "It is kind of constraining or enabling force beyond one's control. This construct is "a set of interrelated factors that provide organizational members with the opportunity to acquire and display attributes related to role competence and effectiveness. (quote text) There are many opportunities that Riordan could provide for their employees to help with the motivations issues it faces. Some of the opportunities that could be implemented are: succession planning, skill inventory, job rotation programs, and assessment centers.

Stakeholder Perspectives/Ethical Dilemmas

Stakeholders are defined as "individuals or organizations that stand to gain or lose from the success or failure of a system." (Nuseibeh and Easterbrook, 2000). Stakeholders can include managers, shareholders, employees, and clients. R. Edward Freeman, in his book Strategic Management (1984) used the term "stakeholder analysis to remind management that it was in the long-term interests of the company to pay attention to the interests of those who have an impact on or are impacted by the activities of the company." (Freeman, 1984). Using a stakeholder analysis can be a very "effective analysis and mechanism for bringing other perspectives into the design process." (Boutelle, 2004). In Riordian Manufacturing, the stakeholders would include the following:

Employees

The values and interests of the employees can be quite different from those of any other stakeholder. Some of the items employees are interested in are:

Ð'* A good work environment;

Ð'* The success of the organization;

Ð'* Fair compensation for their work;

Ð'* Stability within the organization;

Ð'* Good leadership;

Ð'* The tools necessary for them to succeed; and

Ð'* Continued training and opportunity for advancement.

The employees value a good work environment with a positive culture that rewards them for their hard work and commitment to the organization.

Senior Management

Executive management is interested in the success of the organization, as do the employees above, but to a different degree. Executive management is held responsible for the company not performing up to the quota. They are also the ones the benefit the most