Riordan Gap Analysis

Gap Analysis: Riordan Manufacturing

Employee motivation and rewards are effective means to retain employees. When an employee is motivated, his or her needs are being met. When an employee is unmotivated, his or her needs are not being met which results in a high employee attrition rate. Riordan Manufacturing is experiencing a high attrition rate. Riordan Manufacturing has 3 plants and employs 550 people. Recently, Riordan hired Human Capital Consulting to perform an analysis on the underlying issues that are causing the decreasing employee satisfaction and to recommend courses of action that will address the underlying issues. Research has been done to identify the issues and opportunities, the stakeholders and ethical dilemmas, and the end state vision. A gap analysis has also been performed to determine the gap between the current situation and the end state goals. Riordan Manufacturing will use this information to determine the best way to proceed towards improving its working environment for the employees.

Situation Analysis

Issue and Opportunity Identification

Riordan Manufacturing is going through organizational changes because of fluctuations in profits and declining sales. The customers are now serviced by a sales team instead of a salesperson. The manufacturing plants have been restructured into self-directed work teams and some of the manufacturing work has been moved from the U.S. plants to China. Due to all these changes, the employees are experiencing a high level of dissatisfaction. The wide range of demographics creates a challenge for increasing job satisfaction and improving motivation among all employees.

Stakeholder Perspectives/Ethical Dilemmas

The strategic change Riordan has made to its operations has caused turmoil among the employees. The employees rely on Riordan to not only compensate them for their work but to motivate them through new job opportunities and training. Riordan is responsible to its existing customers to continue to provide uninterrupted service when employees leave. The company is also responsible to remain competitive by keeping costs low and profits high. For the past two years, declining sales and fluctuating profits have prevented Riordan’s management team from focusing on the human resource issues. The conflicting interest of the employees’ needs and the ability of Riordan to provide for its employees could result in an even higher loss of employees to its competitors.

End-State Vision

Riordan Manufacturing will become the best place to work and the customer base will continue to grow. Employees will be given the opportunity to attend training sessions for either current positions or to be trained in another field. Compensation will be competitive. Human resources will be focused on employee motivation based on employee needs. The combination of these will create an unstoppable force in the industry.

Gap Analysis

Riordan has three major demographics represented in its workforce: Baby Boomers, GenXers, and GenYers. All three groups are unique in what motivates them and in their compensation and benefit requirements. The Baby Boomers are the majority of managerial staff and approximately half of the manufacturing staff. Opportunities to shine motivate this generation. Baby Boomers also are more likely to stay in the workplace because of college bills for their families, the inability to retire comfortably, or not wanting a conventional retirement. They also are satisfied with either quarterly or annual feedback. GenXers on the other hand, require more immediate feedback and “see their job as a career step instead of a destination” (Szakonyi, 2008, p. 1). GenXers are more motivated by flexible work schedules and a family friendly work environment. Like the GenXers, GenYers are motivated by feedback and the tools they need to do the job. According to Jamie Porcheddu, GenYers appear to be more aware of “how the company is performing and are curious about how they can grow with the company” (Szakonyi, 2008, p. 1). Riordan should remember that even though each demographic group is unique in what motivates them, so is each employee.

Employees’ job performance is directly linked to their ability, motivation, and opportunity. “…Effective performance is a function of ability, motivation, and opportunity.” (Dougherty and Dreher, 2001, p. 27). Employees’ abilities are developed through training. Training employees in different functional areas gives them the ability to advance and improve their job performance. Riordan’s human resource team cannot motivate the employees; the employees have to motivate themselves.