Riordan Problem Solution

Problem Solution: Riordan Manufacturing

Riordan Manufacturing is a global plastics producer that employs 550 people with projected annual earnings of $46 million. Riordan is an industry leader in the field of plastics injection molding, and has top design capabilities and creates innovative plastic designs that have earned international acclaim. Riordan has facilities in California, Georgia, Michigan, and a global presence in Hang Zhou, China.

Riordan’s president is the primary stakeholder and founder of the company and his focus is on increasing sales and financial profits, while increasing the value of his investments, as he gets closer to retirement. Through past successful business strategies, Riordan is today a Fortune 1000 enterprise with revenues in the excess of $1 billion.

Due to recent declines in sales, Riordan implemented a change to the internal sales process and adopted a customer-relationship management system, in addition making changes to the manufacturing and marketing of their products. Additionally, Riordan is experience low employee motivation and job satisfaction levels, which are also affecting productivity internally.

This paper will discuss the current situation, investigate the stakeholder’s perspectives, and determine end-state goals for Riordan. In addition, this paper will recommend alternate solutions, discuss the risk involved, and will choose and plan the implementation of an optimal solution.

Situation Analysis

Issue and Opportunity Identification

A recent annual employee survey conducted by the human resource director revealed a decrease in overall job satisfaction especially in the areas of compensation and benefits. There has also been a decrease in employee retention due to changes from outsourcing manufacturing processes to a new manufacturing facility in China.

Riordan’s President and the Chief Executive Officer (CEO) of the company believe that the employees of the company are well taken care of when it comes to compensation and benefits and neither one of them believe that a change is needed for compensation despite what the employees are trying to tell them. The President of the company is concerned with the lack of employee motivation and loyalty among employees, believes that the younger generation is ungrateful, and does not realize how good they have it. The CEO of the company also agrees that employee compensation is fine and believes that changes need to focus on improvements in job designs and processes.

Riordan’s President and CEO of the company need to refocus their strategies on motivating and retaining their employees by focusing on the moral of their current employees. Employee job motivation increases with “…satisfaction with influence over job; satisfaction with amount of pay; satisfaction with sense of achievement; and satisfaction with respect from supervisors” (Applied Economics, 2006). This provides an opportunity for Riordan and management to motivate their employees by empowering the employees to participate in the decision-making processes and through recognition of their skills and contributions to the organization.

Riordan needs to encourage the employees to participation in decision-making and recognize the employees’ skills and contributions to the organization. Riordan also need to realize the problems that stem from employees perceptions of how managers are treating them at work. This perception affects the match between individual and organization needs and desires, which affects productivity, absenteeism, and unmet individual needs.

Stakeholder Perspectives/Ethical Dilemmas

Power and politics within an organization are important concepts to recognize when it comes to strategic processes within an organization. Politics and power play a substantial role in shaping relationships and behaviors among employees. If the level of power and politics is not managed, the strategy within the organizational structure and systems of domination will prevent the organizational perspective from delivering on its promises.

The President of Riordan has a personal and financial interest in the company because he is the company’s primary shareholder. The President is worried about declining sales and the value of his investment in the company especially since he is getting closer to retirement. He values the employees who have been loyal to him and values his employees being motivated to perform at their best.

The senior management for Riordan includes the Vice President (VP) in Research and Development, a Chief Operations Officer (COO), a VP of Sales and Marketing, a Chief Information Officer (CIO), a Chief Financial Officer (CFO) who oversees the HR activities, and the Director of Human Resource. The members of the executive team have an interest in implementing strategic processes that will improve the company’s financial success while motivating and retaining current employees. However, each manager has varying differences and interests in what types of strategies need to be in place. These interests move Riordan towards improving the rewards and compensation plans, redesigning job procedures, retaining key employees in technical and sales positions, and concerns over the lack of influence the HR department has with the executive management in making the necessary changes within company.

The employees of Riordan range in various ages and are broken down into three groups labeled as the Baby boomers, the GenXers, and the GenY and make up the staff of managers, manufacturing staff, engineers, sales reps, customer service reps, and IT staff. The groups differ in their opinions and perspectives on what rewards and motivation. The GenXers and GenY groups also differ in their values on what types of work they find interesting and what they consider reasonable in salaries and compensation. Stakeholders participate in creating the new reality and research contributes to people realizing their preferred values. The employees envisage a preferred future and organize effectively to achieve it.

Problem Statement

Riordan Manufacturing will offer increased customer service by adopting the necessary policies and practices to implement a customer-relationship management system.

End-State Vision

The end goals for Riordan Manufacturing need to center on improving strategic planning for employee motivation and retaining high performing employees so that the company can improve sales and profitability to meet both current and future goals. This type of strategy is beneficial when a company plans

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