Gap Analysis Riordan

Running head: GAP ANALYSIS: RIORDAN MANUFACTURING

Gap Analysis: Riordan Manufacturing

Human Capital Development/MBA 530

Gap Analysis: Riordan Manufacturing

Executives and companies from all over the work regardless of their size and industry face difficult challenges day after day. Some of these challenges can be solve with implementation of short and long term strategies, but there is one that affects the soul of the company, the employees’ performance and motivation. In this case, the executives’ ability to align the employees’ different cultures, backgrounds, ethnicities and family situations with their unique needs plays a decisive role in the difference between an energized, productive workforce and a lethargic, non-productive one.

Riordan Manufacturing a global plastic producer with 550 employees is facing a difficult time trying to keep employees motivated and loyal towards the new strategic changes the company is implementing. This paper will explain the gap existing between the actual stage of the employees’ willingness to exert effort towards the company success and the desire stage as well as some of the changes Riordan Manufacturing’s executives need to put into action in order to create an environment where employees feel appreciated.

Situation Analysis

Issue and Opportunity Identification

As a response for declining sales and uneven profits over the past two years Riordan Manufacturing implemented changes in its sales processes and adopted a customer-relationship management system. Customers are now serviced primary by sales teams rather than single salesperson which has created some tension in the sales department since the bonuses now depend on a team effort and not the representative individual performance.

In addition, the company is facing a declining morale and high turnover because the current reward and recognition systems don’t meet the different employees’ needs. An inadequate training and development system has also impacted the employees’ motivation. The company needs to implement new motivation strategies and completely overhaul the reward system.

The company can implement a new reward system that keeps up with the different perspectives and needs from its employees so it can retain key employees. A recognition system that provides feedback from supervisors and incentives can help to make employees feel appreciated on their work. Additionally Riordan Manufacturing can supply an appropriate training to employees to help them develop new skills to be able to move up in their career within the company. These are some of the opportunities the company has to build back employees’ motivation, loyalty and performance.

Stakeholder Perspectives/Ethical Dilemmas

Stakeholders as members of the company have their own perception to the problem Riordan Manufacturing is facing. The CEO of the company Michael Riordan is looking to solve the motivation and reward problem existing in the company as soon as possible but he still thinks that the compensation system in the company is fair. As the CEO nears to retirement, another concern he is facing is the value of Riordan Manufacturing in the market since he owns 80% of the company’s stock.

The company’s senior managers understand the urge to solve the problem if Riordan Manufacturing is to move forward in the development of new products. Managers are losing key employees who are leaving the company for a more competitive salary and better career opportunities that Riordan Manufacturing is not offering at all.

Even though senior managers understand the difficult situation the company is facing each one of them have a different perspective on how the problem should be resolve. .For example, Maria Trinh, Riordan’s Chief Information Officer, has reviewed salary surveys from the industry and noticed that the programmers’ compensation is 15% below the industry’s average. Her suggestion is adjust salary ranges for the IT programmers as soon as possible. On the other hand Dale Edgel, Chief Financial Officer, thinks that the job satisfaction issues are more complex than just compensation and doesn’t believe creating new incentives or adjusting pay rates will solve the underlying problems.

Employees’ surveys, turnover and complains reports is some of the information management has gathered to identify the factors that are affecting the employees morale and job satisfaction level. Employees don’t feel appreciated by the company, since they are not taking in consideration when a vacancy is open. The company prefers to hire outside people instead of giving its employees the opportunity to apply for the position.

Employees are looking for an adequate training and a recognition system that satisfies their needs as well as an incentive program that concentrates on the employee’s individual performance instead of the employee’s service years.

Riordan Manufacturing’ top executives need to realize that having employees motivated and willing to work for the company success is going to help the company to improve its sales and profits.

End-State Vision

The global plastic producer Riordan Manufacturing has overcome one of its biggest challenges and it has become a company where employees are happy to come and work for. Motivation tools and reward systems have played an important role in the successful increase of the employees’ loyalty and performance level. The implementation of career paths has had a big impact in the employee’s moral as they feel more appreciated and senior managers have implemented recognition