Riordan Manufacturing

RUNNINGHEAD: RIORDAN MANUFACTURING

Problem Solution Paper: Riordan Manufacturing

Introduction

The purpose of this paper is to recommend a solution to Riordan Manufacturing (RM) for problems they are experiencing. The key areas to be addressed are the issues, the opportunities, the problem definition, the alternative solutions and benchmarking validation. This paper will analyze the alternative solutions, and state the risks and mitigation techniques to these risks. It will then recommend a final solution to Riordan Manufacturing. Finally, this paper will conclude with a plan to implement the recommended solution.

Situation Background

Riordan Manufacturing (RM) is a global plastics producer with projected annual earnings of $46 million. RM employees comprise three major demographic groups, baby boomers, generation X’s and generation Y’s. Riordan’s major customers are automotive parts manufactures, aircraft manufactures, the department of defense, beverage makers and bottlers and appliance manufactures. Riordan has recently made several strategic changes in the way it manufactures and markets its products. They have adopted a customer-relationship management system. After which the company conducted an employee survey which revealed a decrease in job satisfaction in the areas of compensation and benefits. For these reasons Riordan is losing sales and key personnel. They are in the middle of making important decisions on how and when to proceed with solving their issues.

Issue Identification

Many employees are complaining about compensation benefits. Riordan is also underpaying key employees below the industry average.

Opportunity Identification

Riordan can revise the current compensation plan to fit the needs of the organization. Riordan can also review the industry pay scale and base it on the performance of their employees.

Stakeholder perspectives/Ethical Dilemmas

The stakeholders are as follows: Michael Riordan, CEO for Riordan Manufactures, Kenneth Collins and the research and development team, Charles Lacy and the sales and marketing team, Maria Trinh and the information technology department and the customers.

Michael Riordan the CEO of RM and primary shareholder with 80% of the company’s stock is concerned with the value of his investment. His perspective on the employee’s complaints about the company’s compensation plan is “the new generation is ungrateful and doesn’t realize how good they have it” (UOP, 2007, p.11). His ethical dilemma is, he believes the “company is good to its employees and is concerned they are no longer as loyal as they used to be” (UOP, 2007 p.11). Kenneth Collins and the research and development team are concerned with inadequate