Gap Analysis: Riordan Manufacturing
Introduction
Riordan Manufacturing is a 16-year-old global plastic producing company employing 550 people with projected annual earnings of $46 million. Recently they’ve been having employee motivation issues and as a result are experiencing declining sales, lower job satisfaction, and increased turnover. With pay currently not meeting industry standards, they are at risk of losing good employees to other companies while at the same time having highly visible projects they need completed on the horizon. Riordan needs to find a way to motivate employees while not disturbing the various needs while considering the demographic makeup of their current employee base. By implementing changes based on performance, rewards, or just changing the job design, they can only hope they they’ve satisfied their requirements to remain motivated.
Situation Analysis
Issue and Opportunity Identification
Due to current processes in place and the neglect in addressing problems in prior surveys, Riordan is a company now facing employee motivation issues. Current compensation packages are inadequate as compared to their competitors. Reward systems recognize seniority over performance, along with individuals over teams. Employees are feeling unchallenged by their jobs, there is no trust in human resources by leadership, and the demographic makeup of employees provides different perspectives relating to rewards, motivation, and values. Unless these issues are addressed and properly identified, these problems will continue to persist with the company.
With current compensation packages not being on par with competitors, Riordan is facing the possibility of high turnover and losing knowledgeable e...
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...y for them in order to retain their status as being an industry leader.
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Riordan Manufacturing is going through organizational changes because of fluctuations in profits and declining sales. The customers are now serviced by a sales team instead of a salesperson. The manufacturing plants have been restructured into self-directed work teams and some of the manufacturing work has been moved from the U.S. plants to China. Due to all these changes, the employees are experiencing a high level of dissatisfaction. The wide range of demographics creates a challenge for increasing job satisfaction and improving motivation among all employees.
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