Problem Solution: Riordan Manufacturing

Problem Solution: Riordan Manufacturing

Riordan Manufacturing (Riordan) is addressing shifting business strategies that value quick product adaptations, streamlined organizational structures, and team-based work. In addition, worldwide markets are experiencing a severe talent shortage. Riordan reacts to uneven profits and declining sales by making strategic changes in its manufacturing and marketing efforts. Adopting a team based focus, Riordan encounters unexpected difficulties. Unfortunately, decreased job satisfaction and reduced productivity have been Riordan’s reward.

After extensive management meetings and employee surveys, Riordan’s CEO presents the following findings from a human resource (HR) consultant: The organization will need to address its existing HR systems to determine if it effectively supports its strategic goals. Employees have expressed much dissatisfaction with lack of professional challenges and lack of opportunities to advance. Additionally, lack of trust is mounting as employees view their assessment process as inconsistent, subjective, and supporting individual performance. Riordan’s critical talent has also voiced a desire to seek employment elsewhere as competitors offer better salary compensation. This critical talent would also take sensitive proprietary information to competitors.

Situation Analysis

Issue and Opportunity Identification

Riordan is a $46 million dollar global plastics producer with three production plants located in Georgia, Michigan, and China. Riordan has experienced slumping sales and erratic profits the previous two years. Determined to correct this trajectory, leadership focused its strategy on a team-based CRM system.

Given the current reward system that recognizes seniority, positions, and cost-of-living increases, Riordan watches as employee morale diminishes. In addition, an annual employee survey displays decreased global job satisfaction. As a result of its current strategic shift, Riordan struggles to understand how best to address motivation of its talented employees. Research and Development (R&D), Engineering, and IT employees have demonstrated reduced work ethics and increased turnover overtures. Although the current strategy emphasizes team participation, its compensation strategy continued to reward individual performance. This mal-alignment between strategy and compensation caused much discernment among Riordan’s employees. Consequently, Riordan is concerned that employee sentiment might sabotage its three major product introductions in the upcoming year.

The new teamwork