full version Riordan Manufacturing Essay

Riordan Manufacturing

Category: Business

Autor: jon1269 25 December 2009

Words: 2182 | Pages: 9


Gap Analysis: Riordan Manufacturing
Imelda Perez
University of Phoenix

Gap Analysis: Riordan Manufacturing
Employee motivation is an issue that the most of companies faces. Organizations of all sizes struggle with it, and those who do not are at disadvantage facing with lower job satisfaction and increased turnover. Factors such as organizational strategy factors, recognize value of teamwork, desire to increase motivation and reach new customers with innovative products need to be applicable and supported in order to avoid employee turnover. Employees’ benefits such as equally reward and motivation can also make a difference and also deserve consideration.
The latter is particularly true in manufacturing companies -- especially high-tech ones -- with a broad range of employees with myriad motivational needs. A typical manufacturing firm employs manual laborers, skilled trades, administrators, professionals, technical employees, sales and managerial staff. Usually, these workers represent multiple educational backgrounds, generations, ethnicities and family situations. How well the organization addresses these differences can mean the difference between an energized, productive workforce and a lethargic, non-productive one. In order for an organization to achieve the highest-level performance from its employees, it is important to understand what motivates the employee. The motivation and reward that an employee needs from their employer and what his or her employer may be offering them most times will have different measurements. Higher employee motivation will lead to greater creativity, productivity, high morale and minimal turnover within an organization (University of Phoenix, Scenario).
Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. Recently they made several strategic changes in the way it manufactures and markets its products and there has been a decline in sales and profits. Many internal changes have been made and there has been a consistent drop in employee satisfaction and an increase in voluntary terminations. If something is not done quickly to improve the structure of the organization, the entire organization will feel even more loss. In order to keep up with the competition, Riordan Manufacturing must implement changes immediately. This paper will address the issues and opportunities within Riordan Manufacturing, the stakeholder groups and the interests, rights and values of each group, the end-state vision that will project to the company if its goals have been achieved and will include a gap analysis of it is suggested to change to improve human resource practices and provide Riordan Manufacturing a sustained competitive advantage (SCA) in the global marketplace (Dreher& Dougherty, 2001).
Situation Analysis
Issue and Opportunity Identification
External and internal issues have been affecting Riordan Manufacturing organization. The following are some of the issues that have been identified and analyzed to create opportunities for a rapid strategy to identify where improvements needs to be put into practice. Each of these issues represents opportunities for Riordan Manufacturing to learn and develop new strategies.
Employee retention is deteriorating and many key elements may be leaving the company. It is obvious that employees are seeking for higher pay and better job satisfaction according to the standard of their jobs. Due the current situation of Riordan Manufacturing, their salaries may not be what the market average for a similar position in the industry is offering. This is also a major concern for the research and development (R&D) department since they do not want to lose a key employee with vital company knowledge. Riordan Manufacturing can design more effective compensation packages and incentive and also learn better retention methods to gain a leading perimeter on their competitors. The organization better prepared and with the best recruitment and retention plan remains if business.
The employee incentive and satisfaction program is an issue for both management and the current employees. Currently, the sales incentives are structured around an individual rather than a team and this issue has come about as a result of the change in the sales approach from individual accounts to a team approach. Employee satisfaction has declined in the past year. Employees are not feeling challenged due to lack of direction of the company’s goals. Riordan can implement a strategically aligned incentive program to motivate employees to stay and achieve employee satisfaction. “Good HR practices include establishing a variety of incentives oriented toward a long-term organizational focus” (Dreher & Dougherty, 2001). “Satisfied employees will promote a positive organizational climate and lead to increased productivity for Riordan” (Dreher & Dougherty, 2001).
Employee training and development is another area that needs improvement in the internal organization. Riordan Manufacturing has not promoted enough, training and development of the current employees. This could benefit the company greatly since it will help to attract candidates from competitors and retain current employees, furthermore, it will attract individuals internationally. Riordan Manufacturing implemented a Six Sigma quality assurance system that connects the three facilities which include Michigan, California and China. The employee training and development initiative can provide Riordan Manufacturing competitive edge-world business.
Riordan currently has seeing a decreasing HR department. The company and the HR department need to build a performance brand. Riordan Manufacturing needs to determine the strategic impact of HR issues on organizational effectiveness and it can be enhance to fit the current needs. Best practices in the market will illustrate to senior management how other businesses have addresses this internal situation. Riordan Manufacturing can build an exclusive work culture by integrating business situations and employee needs. The management team must make parallel the company goals with the HR department. “HR practices must be integrated and aligned closely so that they reinforce each other and encourage behaviors that are compatible with organizational goals” (Dreher & Dougherty, 2001)

Stakeholder Perspectives/Ethical Dilemmas
Stakeholder perspectives and the ethical dilemmas that each group may encounter is a very crucial part of the success of an organization. Michael Riordan has a tough job ahead of him assuring that all stakeholders involved experience their expected long-term growth and financial success of the company.
The investors/stockholders have seen investments declining over the past two years. This group expects Riordan to find ways to improve the current sales slump because they want a respectable rate of return on their investment. This group of individuals/companies is the foundation to the success of the financial side of Riordan. Michael Riordan should be investigating many alternatives for ways to strengthen the company financially.
The company has 15 to 20 major customers, including a government contract for fans. The firm also has 12 minor customers. This stakeholder group wants top quality products at competitive prices from a reputable company. It is Michael Riordan’s pledge to his customers that they will be satisfied with the sales and services of products offered. The internal issues that Riordan is currently facing must not affect the level of quality and service that they have learned to expect.
There is a lot of dissatisfaction among Riordan Manufacturing employees with their jobs; they expect better motivational and reward programs to provide training, educational assistance, professional development, incentives and better job design. Employees also want to have the opportunity to move into other positions and grow within the company.
The key leaders are each head of a different area of the organization and see the problems from different perspective; therefore, they analyze the solutions accordingly. Through objective communication, these key players need to integrate business situations and employee needs to come to an immediate solution. Once strategic solutions have been determined, the leaders can evaluate the changes.
End-State Vision
The first goal is to increase employee job satisfaction by establishing a clear definition of what this goal entitles. Once the goal is determined, HR will get involved to help to build workforce performance and to obtain feedback form employees.
To retain top key employees and eventually attract new talented prospects, the second goal is to improve the compensation package that needs to be revised immediately. When the new compensation package is completed and implemented, employees will be more likely to become motivated to help the organization achieve its future mission, “We must be focused in achieving and maintaining reasonable profitability to assure that the financial and human capital is available for sustained growth” (University of Phoenix, scenario)
Employee retention has been deteriorating steadily and there have been several voluntary terminations. Riordan Manufacturing will reach this goal when an alliance is built around workforce performance. The company must create a method of strategic planning that aligns the company’s long-term vision with its current actions and plans. By creating an internal brand that Riordan is the type of company that values its employees, offers the opportunity for advancement, offers a competitive compensation and benefits package, the retention problem will no longer exist.
Gap Analysis
Riordan Manufacturing will overcome many challenges to before achieving the end-state vision for the organization. They will need to compare their actual performance with their potential performance. Riordan Manufacturing also will need to find methods to integrate their mission and vision into their strategies to improve employee job satisfaction, employee compensation packages and employee retention. They need to align all training and education with the company’s mission, vision and strategic plan. This process will help to determine whether or not they will have to look for alternatives as solutions as a support to achieve the end-state vision. Each step of this gap analysis will need to be supported by best practices examples to help the organizational flow. Once the expected performance levels and improvements have been determined at a level that will assure a competitive edge in the global industry, that information can be compared to the level in which the organization currently functions. This will help Riordan Manufacturing to have the foundation for measuring the investment of time, money and human resources that will be required to achieve the outcome required for realization of their goals.
Riordan Manufacturing has the opportunity to become a global recognized leader and be ahead from its competitors by being known as the first place consumers will contact when they want to have quality products in the global plastics industry. By concentrating in building a strong internal organization and making a place where employees enjoy their jobs, feel a sense of success and accomplishments, and create an emotional attachment, Riordan Manufacturing will assure the key to success and continue with long-term growth of the company. The reviewed processes of training, communication and committing to the same goals, will take Riordan Manufacturing to the remarkable recognition among competitors.

Dreher & Dougherty (2001). Human resource strategy: A behavioral perspective for the general manager. New York: McGraw-Hill.

Other online sites consulted:

Table 1
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
Course Concept
(Include citation) Concept
Employee retention has been very low lately and the company is losing employees with important knowledge Training and fair pay can lower the employee turnover Employee retention, especially of your best, most desirable employees, is a key challenge in organizations today (Dreher & Dougherty, 2001) Effective retention and career development
Employee competitive benefit packages are week and unfair compared to other companies in the same field Research what others have done to compensate fairly employees “Most managers regularly grapple with the complex challenges presented in
rewarding and compensating employees” (Dreher & Dougherty, 2001) Compensation revenues and expenses
Training has been the least of worries for Riordan Manufacturing and its affecting employee motivation to continue working under new performance demands Offer constant training will create prepared employees that will represent the company Simply put, performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on performance of the organization, a department, processes to build a product or service, employees, etc. Dreher & Dougherty, 2001) Performance management system
HR department has have a neutral role in the development of interventions to stimulate employees to perform at 100% Management level and HR working together will reach an objective ground that will benefit employees and the purpose of HR “From the perspective of integrated HR systems we should also consider
how changes in some aspect of an HR system might affect employee perceptions
of expectancy, instrumentality, and valence” (Dreher & Dougherty, 2001) Human Resource System

Table 2
Stakeholder Perspectives
Stakeholder Perspectives

Stakeholder Groups
The Interests, Rights, and
Values of Each Group

Employees vs. Riordan Manufacturing executives The employees are in their right to look for jobs that will provide them with the necessary means to sustain their life style. They can stay at Riordan Manufacturing if their compensation and benefits are reviewed. Riordan Manufacturing has to the right to maintain low costs as much as necessary to maintain the business opened even if it means to lose key employees.
Riordan Manufacturing vs. consumers This stakeholder group wants top quality products at competitive prices from a reputable company. It is Michael Riordan’s pledge to his customers that they will be satisfied with the sales and services of products offered. The internal issues that Riordan is currently facing must not affect the level of quality and service that they have learned to expect.

Riordan Vs. Shareholdres The investors/stockholders have seen investments declining over the past two years. This group expects Riordan Manufacturing to find ways to improve the current sales slump because they want a respectable rate of return on their investment.

Table 3
End State Goals
End-State Goals
Revamp HR department to increase employee satisfaction
Increase compensation/benefits package for employees
Improve employee retention