Riordan Manufacturing Problem Solution

Riordan Manufacturing Problem Solution

  • Submitted By: tashka
  • Date Submitted: 12/20/2008 4:42 PM
  • Category: Business
  • Words: 3188
  • Page: 13
  • Views: 2


Problem Solution: Riordan Manufacturing
University of Phoenix

Problem Solution: Riordan Manufacturing
Riordan Manufacturing is global plastics producer with 550 employees and production facilities in Georgia, Michigan, China and research and development center and headquarters in California. Due to declining sales and profits, company changed their sales strategy and implemented six sigma in their production facilities. However, recent changes resulted in decreased job satisfaction and declining morale among employees. In following paragraphs, I will concentrate on issues and opportunities faced by Riordan Manufacturing, reflect on several examples from generic benchmarking research, and based on the findings, identify optimal solutiono for restructuring overall compensation and benefit package in order to encourage employee motivation and increase job satisfaction and morale.

Situation Analysis

Issue and Opportunity Identification
Riordan Manufacturing is facing many issues. Overall compensation policy is not aligned with employee needs and employee morale is suffering. Based on the survey, some employees feel that they are underpaid and they would leave the company for 10% increase in salary. This brings a question of Riordan pay policy. “One basic pay policy decision managers must make is whether to pay at meet, below (lag), or above the market. The market is defined as the average pay level offered by companies competing for employees with similar skill profiles”. (Dreher & Dougherty, 2001. Pg 79) Based on employee survey results as well as research conducted by some departments in Riordan, indications are that their pay systems might be lagging market. Opportunity for Riordan is to examine their pay structure and determine fair levels that will be in tune with current market conditions. Also, this will be opportunity for them to set clear pay scale for different jobs with low,...

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