Problem Solution Riordan

Problem Solution: Riordan Manufacturing

Riordan Manufacturing (RM) is a global plastics production company employing 550 individuals and projected annual earnings of $46 million. Production is divided across 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. The company’s production plants service many vendors from diverse market areas. Riordan’s employees consist of three major demographic groups the Baby boomers, the GenXer’s, and lastly the GenYer’s. Baby Boomers are defined as “those born between 1946 and 1946 and 1964, or those who are currently 40-58 years of age” (Corp, 2004, para. 2). The GenXer’s are “defined as the generation following the baby boomers. Xers were born between 1965 and 1980” (Jochim, n.d., para. 1). Lastly the GenYer’s are defined those “born between 1981 and 1995, generation y members in America are more than 57 million strong” (OnePoint, n.d., para. 1).

These three groups have very different viewpoints on rewards and motivation, valuing everything from interesting work to larger paychecks. The company recently performed an annual employee survey that showed there was a decrease in overall job satisfaction, mainly in the areas of compensation and benefits. The senior leadership of RM is now faced with the complex task of examining the declining moral and work ethic of employees throughout the company.

The following assessment will examine a range of issues impacting Riordan’s operations. Identified issues will be used to determine business opportunities while connecting improvements to key human resource management concepts. The key stakeholders in the organization will be identified along with the establishment of strategic end-state goals that will assist in the direction of improvements at RM. The significant gaps in Riordan Manufacturing’s process will be analyzed using a standard gap analysis approach with accompanied alternative solutions that have a long-term focus and vision. An optimal solution will be identified along with an implementation plan. Lastly meaningful end-state goals that maintain the future vision of the Riordan Manufacturing will be defined.

Situation Analysis

Riordan Manufacturing desires to remain a successful global plastics producer. In order to accomplish this it will be pertinent for RM to overhaul of the company’s structures and processes while paying special attention to their current sales and marketing strategy. Specifically, RM must redesign the financial incentives and rewards being offered to its employees in hopes of finding new motivational strategies. Successful restructuring of the company’s solutions and benefit packages will go a long way to stabilizing the company financially. A system that buys, builds, borrows, bounces, binds, and boosts staff is appropriate for the company. This system will bring people into the organization, train and develop the staff, remove the non-performing staffs as well as retaining the appropriate talents for the jobs, including boosting people into the right positions (Ulrich & Brockbank, 2005).

Upper management understands the necessity of having quality managers to lead subordinates in the new business plan. Ulrich and Brockbank (2005) emphasize this by stating, “Senior managers with vision and competence are critical to a company’s success, which is why they are hot prospects for rival recruiting. Many technical, operational and hourly workers are equally critical. Investments in individual talent often take years to pay back” (p.22). Executive management recognizes a problem exists in retaining quality staff in the wake of implementing the new sales process. Other issues confronting this plan reside in the leadership and unity portrayed by the management team. A continued united front will be a problem as each executive officer promotes their units agenda.

Issue and Opportunity Identification

Riordan Manufacturing is a global plastics producer that earns over 46 million annually and employs over 500 people. A fortune 1000 enterprise, RM receives a reported 1 billion dollars in revenue. Due to declining sales and profits over the past two years, the company has decided to realize “several strategic changes in the way it markets and manufactures and markets its products” (UOP rEsource, n.d., para. 4). Michael Riordan, CEO of RM, has decided to start by revamping its sales process and adopting a customer-relationship management system. The achievements of an organization are the results of the combined effort of each individual. The customer-relationship management system (CRM) would mean that service given to customers would be given by teams consisting of salesperson, product engineer specialist, and customer service representatives not just a single salesperson.

In the manufacturing department, “Riordan implemented a Six Sigma quality approach” (UOP rEsource, n.d., para. 5). Employing this approach redirected work to other facilities as well as restructured work teams. However, these new changes have caused a decline in employee retention. According to Dreher and Dougherty (2001) employees will be influenced by the task demands and reward system from the assigned job and organization. The surveys in which the RM employees participated in showed that there is a decrease in job satisfaction, benefits and compensation. The existing incentive system is not solely based on performance, but recognizes cost-of-living increase, seniority and position. Therefore, prompting managers to request that a new reward and incentive systems be created. “Job performance will likely be most effective when the person’s temperament, preferences and expectations are congruent with the organizations reward system” (Dreher & Dougherty 2001, p. 24). RM is now faced with a significant amount of challenges that must be acknowledged and dealt within order to develop a strategy to restore employee morale and motivation.

Stakeholder Perspectives/Ethical Dilemmas

There are several stakeholders to consider when looking at the current situation at RM and it starts with the investors of RM who have seen investments declining over the past two years. From their perspective, Michael Riordan should be looking for a way to strengthen the company and turn profits around as quickly as possible so as not

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