Riordan Problem Solution

Problem Solution: Riordan Manufacturing

Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Production is divided among three plants: plastic beverage containers in Albany, Georgia; custom plastic parts in Pontiac, Michigan; and plastic fan parts in Hangzhou, China. Research and Development is conducted at corporate headquarters in San Jose, California. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers.

Recently, Riordan made several strategic changes in the way it manufactures and markets its products. Declining sales and uneven profits over the past two years not only forced the company to change its sales processes, but also prompted them to adopt a customer-relationship management (CRM) system. Primarily sales teams rather than single salespeople now service customers, with each team focusing on a particular customer segment. Teams typically include a sales person, product engineering specialist and customer service rep. The hope is that the team approach will improve sales. (Milkovich and Newman, 2004)

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 that their existing plan is causing low morale, decreased sales and poor customer relationships. Riordan, based on employee surveys, needs to discover the best practices of companies that have solved issues similar to their concerns. Riordan Manufacturing will need to engage and motivate employees by transforming this low morale culture and retain existing employees through new reward and incentive programs. This paper will address motivation as it applies to Riordan employees and rewarding their employees. It will also explain the importance of effective communication through management.

Situation Analysis

Issue and Opportunity Identification

Riordan Manufacturing needs to include their HR division on decisions that are made throughout the company and discovered through surveys. The company has a communication barrier leaving out the HR division because of the department isn't aligned to the President of the company, Michael Riordan. Michael Riordan needs to communicate to the investors how he is planning on improving sales and profits. His staff is scattered and lost. Charles does not believe there is enough time. Sales is continuing to decline, as they have for the past two years, and the switch to customer-focused teams is proceeding slowly, thus suggests revamping the sales incentive system. Kenneth would like to add incentives for R&D staff. His rationale is that R&D staff is now expected to support the customer sales teams, so they should earn incentives when those sales are completed. Maria believes that IT staff is underpaid relative to the competition. Hugh is concerned about doing anything differently with compensation. Finally, Dale believes that job satisfaction issues are more complex. Riordan needs to make sure the team summarizes the key findings and comes to a conclusion that can work for all departments.

Stakeholder Perspectives/Ethical Dilemmas

Riordan Manufacturing had to act quickly in implementing a plan to combat the issue of losing profitability and morale. In the end, Riordan failed to involve critical stakeholders in the direction of their new plan for success and with the company's future. Riordan simply failed to communicate effectively