- Term Papers and Free Essays

Riordan Manufacturing

This essay Riordan Manufacturing is available for you on! Search Term Papers, College Essay Examples and Free Essays on - full papers database.

Autor: 24  •  December 21, 2010  •  5,653 Words (23 Pages)  •  1,118 Views

Page 1 of 23

RUNNING HEAD: Critical Analysis of Motivation & Rewards Solutions

Critical Analysis of Motivation & Rewards Solutions

Riordan Manufacturing

University of Phoenix

MBA530 Human Capital Development

April 11, 2007


The following paper will provide a brief background explanation detailing some of the issues found in the Manufacture. There will a series of three possible solutions identified for Riordan where one will be officially chosen. A brief description of the chosen strategy and solutions will then be detailed to provide a better understanding as to why the solution was the best fit for the company. The paper will proceed with an elaboration of each Riordan department experiencing problems and how the chosen strategy solutions will benefit and help it succeed. To finalize this paper, there will be a recap of the issues facing the company and the effectiveness of the strategy chosen to solve them.


Riordan Manufacturing is a successful plastics manufacturing organization operating for at least a decade. Riordan has been very successful, but for the past couple of years the company has seen a decline in sales and profitability. Also employee morale and retention have also become a huge issue for Riordan. In order to develop a strategy to address Riordan's problems, the company must identify the problems and opportunities that are present. Riordan Manufacturing's should develop and have an open discussion for alternative solutions to help the company find issue resolution and provide focus on available opportunities. There are five main problems Riordan should be aware of:

* Decline in sales and uneven profits.

* Poor morale and increasing employee turnover (includes problems with training, compensation, lack of recognition, etc.)

* Lack of leadership and unity within the leadership team.

* Ineffective human resources department and initiatives.

* Improvements with the internal issues (human capital) Riordan Manufacturing will become a much profitable and much stronger organization at all levels by building enduring, trustful relationships with its stakeholders, existing and potential customer


The company was founded by President and CEO, Dr. Michael Riordan. Dr. Riordan started Riordan Plastics, Inc. in 1991. Initially, the company's focus was on research and development and the licensing of its existing patents, but in 1992 Dr. Riordan obtained venture capital which he used to purchase a fan manufacturing plant in Pontiac, MI. At that time, the company's name was changed to "Riordan Manufacturing, Inc." In 1993, the company expanded into the production of plastic beverage containers when it acquired a manufacturing plant in Albany, GA.

The company's most recent expansion took place in 2000 when it opened its operations in China. At that time, the entire fan manufacturing operation was moved from Michigan to China and the Pontiac, MI facility was retooled for the manufacture of custom plastic parts. Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. Its products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China. The company's research and development is done at the corporate headquarters in San Jose. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers. (UOP, 2007)

Problems in Riordan Manufacturing

Riordan Manufacturing is faced with declining morale and work ethics. Declining sales and uneven profits over the years, this not only forced the company to change its sales processes, but also prompted them to adopt a customer relationship system. Riordan's HR reward and compensation policy program needs to be revised to deal with the existing problems. Riordan's HR department should know that their toughest job is recruiting and retaining the best employees for their company. Compensation plan and benefit packages are what companies are using to invest on their employees. Some organizations form compensations committee to ensure that strategies and compensation programs are properly managed. Since, employee happiness can impact an organization's performance and influence employee retention, absenteeism and work performance, it is important to incorporate addressing employee's happiness in the overall business goals of the organization. (Newman, 2004).

Riordan's recent employee survey has indicated that overall employees are not satisfied with its compensation and benefits. It would suit the executives of Riordan to pay attention to the concerns of its most valued assets, their employees, before their whole operation takes a dramatic fall. In order to find out what makes employees happy Human resources and management should study what the type of desired environment employees are looking for. Obtaining and keeping qualified and motivated employees are essential elements to the success of a company. Offering a competitive motivation and rewards program can help Riordan's employees reach their individual goals. The intent is to provide a competitive rewards package to all Riordan employees that motivates, retains and attracts the best and brightest people



The team has researched three different benefits package in an effort to offer Riordan Manufacturing Company Employees with a significant and rewarding benefits package. The first of the three is known as "ROWE". ROWE is an acronym for results- only- work- environment that depicts the new process of the company that makes the decision to offer it to its employees. Many companies have adopted this system because it is utilized to cut cost for the company in the long run. . (

This benefit system allows the employee to use their time wisely at work and use extra time for personal life issues. It would also avoid the employer to pay for


Download as:   txt (35 Kb)   pdf (323.6 Kb)   docx (22.1 Kb)  
Continue for 22 more pages »
Only available on