Mba 530 Problem Solution

Mba 530 Problem Solution

  • Submitted By: kidd7stud
  • Date Submitted: 07/29/2009 4:49 PM
  • Category: Business
  • Words: 4088
  • Page: 17
  • Views: 1


Problem Solution: Riordan Manufacturing
MBA 530
University of Phoenix

Problem Solution: Riordan Manufacturing
Employee motivation is an issue for organizations of all sizes, all across the world. Riordan Manufacturing is a global plastics producer having problems with employee motivation. Over the past two years, the company has seen declining sales and profits which has caused them to restructure their sales process and change the way they work with their customers. Recently they have seen decreases in employee satisfaction, and increases in employee turnover rates. This paper will look at the issues facing Riordan Manufacturing, explore possible solutions including restructuring and adding new pay and incentive programs, decide on an optimal solution to the problem, and lay out a plan to implement it.

Situation Analysis
Issue and Opportunity Identification
Riordan Manufacturing is a large plastics company employing over 500 people, with projected annual earnings of $46 million. Recently, they have completely overhauled their sales system in an effort to combat slumping sales and uneven profits. Customers are now being serviced by sales teams, rather than individual sales employees, with each team focusing on a specific customer segment. As all of these changes have been implemented, employee satisfaction at the company has declined. A recent employee survey confirmed this decline, especially in the areas of compensation and benefits. Although studies have shown them that the majority of their employees are high achievers or mid-tier performers, all of Riordan Manufacturing’s reward systems are based upon seniority, position, and cost-of-living increases, rather than performance. Michael Riordan, the company’s CEO, has acknowledged the problems with decreasing employee satisfaction, and decided to talk and meet with his senior management team to discuss the issue, as well...

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