Problem Solution: Riordan Manufacturing
“Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million” (University of Phoenix, 2008). Riordan Manufacturing is an industry with declining sales and has had to react to this trend. In reaction, the CEO has restructured from an individual sales model to a new, team sales model. With sales declining, motivation has dropped, turnover has risen, and employees and brought to the fore font their complaints of no upward mobility within the company.
Situation Analysis
Issue and Opportunity Identification
Riordan Manufacturing is facing several issues within the company. One such issue is in the area of human resources. The company “made several strategic changes in the way it manufactures and markets its products” (University of Phoenix, 2008), forcing the company to make drastic changes to sales and introduced a new “customer-relationship management (CRM) system” (University of Phoenix, 2008). The sales department went to teams rather than being an individual to service a customer. This has caused a performance decline in the company, employee turnover rates have increased, and there has been a decrease in job satisfaction within the company.
The employees at Riordan complain of little career advancement within the company. Many believe there are not many opportunities for advancement. The company needs to implement advancement opportunities with succession planning, skills inventory, job rotation, and managerial assessment centers of all jobs, which can motivate within the company, providing employees opportunities to move within the company, as well as provide insight into employees’ talent and potential for management. “Succession planning, skills inventories, job rotation, and the use of managerial assessment centers illustrate components of HR systems that can provide opportunity to all employees” (Dreher & Dougherty, 2001, p. 33). “The use of...