Mba-530 Gap Analysis: Riordan Manufacturing

Analysis: Riordan Manufacturing

Introduction

This paper introduces an overview of situational analysis, issues and opportunities and end-state vision of Riordan Manufacturing Company that is facing employees’ lower job satisfaction and increased turnover. The current management team focuses on increasing employee motivation and rewards for encouraging workforce environmental performance. The organizational structure of Riordan needs to rapidly change the new strategy by realizing human capital development. The change will affect employees’ behavior or performance based on rewards, compensation and benefits. By describing the situation, opportunities and challenging that are facing the issues in the company. The perspectives of stakeholders’ values, ethnics and beliefs that will be occurred ethical dilemmas in the Riordan. The end-state goals will improve human resource management that will address a successful company.

Describe Situation

Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. It is one of a Fortune 1000 enterprise by collecting in excess of $1 billion revenue. “Riordan made several strategic changes in the way it manufactures and markets its products because sales and profits are declining over the past two years.” (Scenario two, University of Phoenix). Riordan needs to restructure into self-directed work teams due to the declination of employees’ retention. Employees include three separate work units have different perspectives on rewards and motivation based on performance. In order to improve sales force, sales team rather than single sales people must contribute their effort in the sale process to be recognized and acknowledged. They will adopt customer-relationship management that provides good service on customer segment by sales teams.

Issues and Opportunities

There have been several strategic changes that have developed increase innovation, recognize the value of team work, reach sales target and new customers by inventing new products. Kenneth, VP of R& D, is concerned about retaining the main employees and not to lose skilled labors due to decrease job satisfaction. The company will face with creating the reward system that includes profit sharing programs, compensation pay, benefits, and incentive salary. Recently, R & D department lost three key employees in the last 12 months because of inadequate compensation. A well-designed reward system can be helpful in promoting employees morale and participate in job improvement efforts. When they switched to customer- focused teams in the last two years ago, sales and profits have been declined. They have to reconsider incentive program as well as commission or bonus structure on salesperson instead of a team approach.

Another issue found underpaying under the market averages their key programmers in R & D department. This is a second concern to develop several innovative products in redesign works so that they need to keep knowledge employees with competitive pay. Some forms of performance-contingent pay is required if employees are expected to be persistent in their efforts to add value to the processes. Riordan should offer training and development program to improve employees’ performance, personal growth, increase commitment and creative job design. Currently, all HR problems directly report to CFO that cannot influence human resource practices. The organizational capability must supplement with human resource management for gaining competitive advantage.

There are a lot of opportunities to create new products, increase sales revenue, increase employees’ incentive and directly support to leadership team. They will align rewards and strategy more effectively that help job satisfaction, work motivation and decrease turnover. The organization has developed ISO 9000 quality management standards in manufacturing industry. They will focus on long-term R & D projects to support sales teams that include a sale person, product engineering specialist and customer service rep. They all also develop performance appraisal process, corporate sales strategy and review HR systems.

Stakeholder Perspectives/Ethical Dilemmas

There are several stakeholders’ ethical dilemmas in the current situation in Riordan which originate from declination of sales, employees satisfaction and organizational work conflict. Charles, VP of sales and marketing, his dilemmas has been found the changes in sales process, customer-relationship management system. Kenneth, VP of R & D, he is concerned about turnover and decrease employee satisfaction. In the long run, he has a plan to develop several innovative products that need to retain vital engineers. Sales management feels their individual bonus program could be at risk than team performance. Maria, CIO, is involving to adjust competitive