Riordan Gap Analysis

Gap Analysis: Riordan Manufacturing

In an effort to execute the triple threat of increasing sales, boosting financial profitability while maintaining employee morale through motivation and compensation, Riordan Manufacturing has decided to redesign the organizational strategy to cater to the employee’s motivational needs through compensation. Riordan Manufacturing has suffered from declining sales over the past two years and has identified a new business plan to implement a customer-relationship management system which would aid in gaining financial stability. The inception implementation of the new business plan placed attention on the diminishing employee morale and declining retention. The execution of the new business concept will cause the organization to re-evaluate its human resource system, which includes its reward and compensation system. Impelled by the need to rise from the depths financial decline, Riordan Manufacturing must identify the issues that are at the root of the diminishing employee satisfaction. This analysis will examine the organizational strategies of each department within Riordan Manufacturing including the issues and opportunities of the current situation, the stakeholders’ perspectives, the end state goals and vision and the gap analysis. The key stakeholders were listed discussing the values, interest, and rights of each group of stakeholders. Next, the end-state vision and goals were discussed illustrating a personal perspective on the outcome of the revamping process and goals that were incepted to increase employee morale through compensation and motivation. Finally, the gap analysis discusses the company’s future status as well as how the goals that will be used in order for Riordan Manufacturing to progress.

Situation Analysis

Table 1

Issue and Opportunity Identification

Issue Opportunity Reference to Specific

Course Concept

(Include citation) Concept

The recent sales and manufacturing changes within the Riordan Manufacturing organization have caused various problems with employee retention and hiring. New and innovative ideas are what give an organization its competitive edge.

Like InterClean, Inc., Riordan has decided to introduce the contemporary idea of the customer-relationship management (CRM) system to gain a competitive advantage. Along with new and innovative ideas “highly integrated HRM practices can help a firm achieve a sustained competitive advantage (Dreher & Dougherty, 2001, Chp. 8, p. 2).” Sustained Competitive Advantage – “A competitive advantage that exists after all attempts at strategic imitation have ceased (Dreher & Dougherty, 2001, Chp. 8, p. 2).”

Upper level management is not listening to the problems in order to offer effective solutions which hinder progress and communication and leads to the wrong diagnosis. An important part of the communication process between management and employees is the art of listening. By actively listening, management could understand their employees and the problems could be resolved which would thwart the need for additional solutions that may become costly. “Interpersonal intelligence entails understanding the causes and predictors of behavior, developing insights into the motives and causes that underlie the behavior of others, seeing patterns or trends in others’ behavior, and using this information to predict and prepare for how others will respond to critical situations (Dreher & Dougherty, 2001, Chp. 2, p. 5).” Interpersonal Intelligence – “the ability to understand other people: what motivates them, how they work, how to work cooperatively with them (Dreher & Dougherty, 2001, Chp. 2, p. 5).”

The reward and compensation systems are not aligned with the firm’s business strategy. The business strategy of any firm could be interpreted as a compensation system that is aligned with that strategy. “If the basic premise of a strategic perspective is to align the compensation system to the business strategy, then different business strategies will translate into different compensation approaches (Compensation, 2004).” “Strategic Perspective focuses on those compensation choices that help the organization gain and sustain competitive advantage (Compensation, 2004).”

The need for a stronger HR role is evident throughout the scenario. A stronger HR role could have determined what intrinsic and extrinsic motivators were needed for each individual employee or demographic group.

The role of a human resource manager lies within the betterment of the employees and the human resources