Riordan Manufacturing

Problem Solution: Riordan Manufacturing

Riordan Manufacturing (Riordan) is attempting to implement several strategic changes throughout the firm’s organizational structure. Recent declines in sales and uneven profits have forced the company to change sales procedures and have prompted the organization to adopt a customer-relationship management model. These changes are producing issues associated with employee motivation and satisfaction. Riordan CEO, Michael Riordan, understands that these challenges must be addressed through restructuring of the organization’s rewards system.

The identification of the issues Riordan is facing will present certain opportunities, which can be further developed into possible problem solutions. These alternative solutions can be constructed using the best practices and benchmarking of other organizations who have faced similar issues. The careful analysis of each solution and how the various stakeholders involved are affected will yield an optimal solution. Full comprehension of how the implementation of a course of action will affect the company requires a risk assessment and the understanding of mitigation techniques to reduce the risk to the lowest levels possible.

Finally, the optimal solution must be implemented and acted upon by the entire organization. The determination of the level of success of the solution can be seen by conducting a thorough evaluation of the results in terms of defined end-state goals. Ultimately Riordan achieves success through the careful and deliberate construction of a problem solution, which when applied corrects the issues addressed in the scenario.

Situation Analysis

Issue and Opportunity Identification

Organizational strategy factors, such as innovation, the value of teamwork, and the desire to reach new customers are becoming increasingly important in the manufacturing industry. However, the need to equally reward and motivate employees with drastically different needs deserves serious consideration. As the management of Riordan Manufacturing implements several strategic changes in the way they manufacture and market products a new sales strategy is required to combat declining sales and uneven profits. Each issue that arises with these changes has the potential to elicit a unique opportunity, which can provide success for the organization.

The first issue facing Riordan Manufacturing currently pertains to employee motivation. Motivation revolves around the ability of an organization to provide an employee with a willingness to exert effort towards a particular cause (Dreher & Dougherty, 2001). The motivation issue stems from a decline in sales and uneven profits over the past two years. Riordan has recently changed its sale strategy, and has adopted a customer-relationship management system. This change in strategy has brought compensation issues to the forefront, and is wreaking havoc on employee turn-over rates. The change in sales strategy provides an opportunity to establish new and effective compensation programs, which will help to eliminate employee motivation issues.

Another issue in this scenario deals with employee satisfaction at Riordan Manufacturing. This dissatisfaction is seen on all levels from management positions to manufacturing positions. A recent employee survey showed a decrease in overall job satisfaction, particularly in the areas of compensation and benefits. The organization must show a dedication to employees’ perceptions and be willing to enhance both individual and group motivation to achieve higher performance levels (Dreher & Dougherty, 2001). Riordan possesses a unique opportunity to capitalize from the recent employee survey. The organization has the opportunity to introduce a new total rewards program, which can solidify organizational strength.

A third issue at Riordan Manufacturing deals with increased employee turn-over rates due to several issues. While lower than industry standards the turn-over rates are indicative of a flawed rewards system. Poor motivators and job design are forcing employees to seek employment with other firms. Riordan must find a method to manage employee turn-over, and not simply reduce the levels (Dreher & Dougherty, 2001). The goal is to increase the overall workforce quality in a manner that benefits the organization (Dreher & Dougherty, 2001). Again, the issues facing Riordan in terms of employee turn-over can be solved through the effective design of a total compensation program. This opportunity will allow Riordan to develop a strong organization committed to success.

Stakeholder Perspectives/Ethical Dilemmas

The Riordan Manufacturing scenario presents several stakeholders: Riordan Manufacturing Management,