Problem Solution: Riordan Manufacturing
Problem Solution: Riordan Manufacturing
Ceretha Jackson
University of Phoenix
August 29, 2008
Problem Solution: Riordan Manufacturing
Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. Riordan is a fortune 1000 company with revenues in excess of $1 billion. Recently, Riordan Manufacturing has made changes implementing Six Sigma quality approach and is ISO90000 certified. Uneven profits and declining sales forced the company to make some drastic changes. The company changed its sales processes and adopted a customer-relationship management (CRM) system. Low job satisfaction and increased turnover, employee motivation has become a major issue. Enhancing the compensation and benefits system and restructuring motivation strategies will help increase retention and increase job satisfaction (University of Phoenix, 2007).
Situation Analysis
Issue and Opportunity Identification
The key issues and opportunities that currently exist are the employees increased level of dissatisfaction, management is concerned about the low pay rates compared to other competitors in the industry. To combat these concerns Riordan could create a more competitive compensation and benefits package. In addition, Riordan needs to analyze the reasons behind employees being dissatisfied; employees are concerned about insufficient training and career growth opportunities. This issue can be addressed by implementing training programs and professional development. Riordan has already implemented changes in the way it manufactures and markets due to the decline in sales and profits over the last two years. In the Sales department pressure is brewing and sales are down, the team structure is not aligned with the individualized compensation structure; it is important to implement an incentive program that aligns with the sales team structure. Emphasizing a new incentive program is vital to increasing employee morale....
View Full Essay
