Running head: PROBLEM SOLUTION: RIORDAN MANUFACTURING
Problem Solution: Riordan Manufacturing
MBA530
July 20, 2008
University of Phoenix
Problem Solution: Riordan Manufacturing
Riordan Manufacturing is a global plastic producer employing 550 people with projected annual earnings of $46 million. The purpose of this paper is to evaluate Riordan Manufacturer’s business situation, identify changes that company will need to implement in order to align its compensation and reward system with new sales strategy, Resolution of employee satisfaction and employee motivation issues and designing new training and employee development program.
Situation Analysis
Issue and Opportunity Identification
Innovation, teamwork, revenue and profit growth, employee satisfaction, are some of the important factors in business. Riordan Manufacturing is facing declining sales and uneven profit, low employee morale, lack of challenging work, lack of career advancement and low compensation. By implementing new strategy of adapting Customer Relationship Management (CRM) and change in sales process, and involving all the departments in implementing new structure, Riordan manufacturing has an opportunity increase sales, better customer service and employee satisfaction. Reviewing and revising pay and compensation packing will increase employee retention and employee morale that will result in low employee turnover.
First issue faced by Riordan Manufacturing is low employee morale and lack of 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). Due to declining sales and uneven profit in last two years, Riordan Manufacturing has taken corrective measures, changed the sales strategy, and has adopted a customer-relationship management system. Changes in strategy have created dissatisfaction among employees on compensation...