Riordan Manufacturing, the international plastics manufacturer, employs about 550 people with planned annual earnings of $46 billion. Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion, owns the manufacturing company. Riordan’s manufacturing is separated into the following three groups: plastic beverage containers made in Albany, Georgia; normally prepared plastic parts in Pontiac, Michigan; and plastic fan parts made in Hangzhou, China. With the goods being produced at the different parts of the world and different makes, Riordan’s major clients are motorized parts producers, aircraft builders, the U.S. Department of Defense, beverage bottlers and creators, and machine constructers. This is because of the geographical distribution of the production and diversification of the products.
This paper will examine the problems presently affecting Riordan Manufacturing. For numerous reasons, Riordan is facing a general situation involving low employee determination and stimulation arising from poor motivation. The company moved its business plan to utilize team sales and support as opposed to individual sales and support, which left Riordan with a compensation plan inadequate for a team plan. If it wants to remain a top player in the marketplace, Riordan needs to resolve a few issues like ethical issues, performance appraisal, and goal setting with performance evaluation study and training execution. Investor viewpoint, ethical issues, goals, and implementation of alternate answers for the difficulties facing Riordan will be deliberated by the company in order cater for the company needs.
Riordan Manufacturing has approximately over 500 employees and a high turnover rate. As a result of this, the morale of the people is lowered leading to failure in the operation of the sales department. The situation with the departments failing needs an overhaul in the compensation scheme and motivational plans in order to help the employees attain their operational goals.
The situation is more complicated, because employees of Riordan Manufacturing can be divided in three major demographic groups. Baby boomers generation makes up the most of managerial staff and almost a half of manufacturing employees. Generation X descendants make up the major part of professional staff and a moderate percent of manufacturing employees. In its turn, the newly hired personnel is comprised from people of current Generation Y, primarily found in IT, engineering and manufacturing departments of Riordan company. The point is all three presented groups have radically different perspectives on motivation and benefits; they tend to value everything from interesting work to bigger salary and different types of bonuses.
Operative optimism is low throughout the corporation, as shown in the presentation work outcomes in 2004. By reshaping and strengthening the compensation system that provides for all personnel to receive proper compensation in the existing compensation system, the personnel’s drive and work ethic will increase, thus improving employee retention.
The issue of the sales department’s overall performance, which needs an improvement and overhaul, follows this fact. As work performance is low, due to no increased incentives, the sales department has seen reduction in income from sales. The administration team wants to link the employees in that division and create sales teams. In this way, the team might focus on an individual sale and let experienced workers teach the inexperienced, which creates an on-job mentorship program for the younger employees.
With the sales department joining the new sales groups, the teams in the organization are convinced that the performance and growth of the newly efficient section in the company is imperative. Training for the company personnel and proper motivation will ensure that the employees in the organization do not leave thus lowering the employee turnover rate.
Investor Outlooks and Ethical Dilemmas
The investors in this situation are the personnel; they are the foundation of the corporation. The main issue is between the workers and the corporation because the payment that is at the same level with the employees in the newly formed sales department.The corporation, in turn, is at odds with the personnel regarding their work because of determination and boldness toward the employees’ work. Dale Edgel, chief financial officer, is worried about the company’s the research and development (R&D) strategies. For example, he recently lost a few key people from that department. The employees left because of lack of satisfaction in their jobs and pay cuts, which they felt, were not fair.
Some employees are also investors in the same organization. The organizations have to develop systems where the people canwork with little support from the supervision or the board of directors of Riordan Manufacturing. The workers and administration have to be confident in the organization forthe new employee system in the sales department to be implemented through the corporation and through the maternal conglomerate, Riordan Industries.
Frame the “Right” Problem
Riordan Manufacturing is presently deteriorating with regard to its sales and turnover. The corporation will improve in total operative holding rate, increase profits and generate enlargement as an outcome of the personnel growth.
Riordan Manufacturing corporate culture is based on principles of trust, fairness, dedication to work, innovative approach and consistent teamwork, as well as disability accommodations and performance evaluation procedures. Benefits include 401K, dental, educational assistance, health and life insurance. Yet, it appears the current system has not been working.
The vision for Riordan Manufacturing is the development of operative inducements, improving the compensation system, the upgrading of trade to increase sales, and the devotion to the business founded on the desires of the employees and consuming optimal units to lower wastages. The new strategies will improve the prospects of the business making it an outstanding venture.
Evaluating the Options
Possible solutions to the questions at Riordan Manufacturing are to revitalize the reward and compensation schemes, rearrange the sales department, motivational seminars, and offer training to grow desirable areas.
The company’s compensation model challenges the staff members in their dealings with the corporations. In today’s civilization, welfare is the most significant issue to the employee.
The rearrangement of the sales department will strengthen teams, shape up dealings with the corporation through creating efficiency in the organization, and introduce potential customers to the products created by the factories of Riordan Manufacturing and Riordan Industries. The groups would be capable of working together, generate the revenue, and tolerate conceivable income for growth if enough attention and sales are generated in certain regions.
Options in this situation are significantly related, because they involve the luxury of the workers at Riordan Manufacturing. The two best solutions for the personnel of Riordan and for the corporation as a whole would be the motivational approaches to comprise studies, which will reveal needs of the employees and seminars and to rebrand the reward system to en employee friendly system, which will enhance motivation among the employees.
Motivational arrangements meant to increase employee satisfaction are desirable since they will increase employees’ consciousness of the activities around them and allow suggestions to be implemented, which would help the improvement of their commitment and output, work ethic, and overall behavior. Workshops should be held at least every second month to confirm that the workers are learning from the recommendations formed in previous workshops and seminars. To provide an incentive to attend, a manager might propose that if employees go to a workshop or seminar, they will earn some days off.
Identify and Assess Risks
The rearrangement of the sales department is critical in this corporation. The personnel work separately from and jointly with other members of the department to generate group energy. This may be an exceptional way to increase sales but, for some workers who work alone, it may cause tragedy. The danger in this condition is the capability of the associates of the group to work together, generating sales and rebuilding weak relations with customers.
The company will have to find out the moral issues connected with the plastic industry in China and, at that time. Establishing a code of conduct for their workers and managerial staff will be essential. This will guarantee that all the ideas, instructions, and directives have been completed, which will increase efficiency in the organization. The agreement also ensures that the corporation is operating ethically both within and outside the organization.
Decision Making
The corporation unquestionably needs to communicate the compensation and reward system to the employees, implement new policies in the sales department to include teams, and permit workers and administration teams to work together to increase confidence in and loyalty to the corporation.
Grow and Implement the Resolution
The answer to high employee turnover in the organization is to give workers a new compensation plan that will boost morale and work ethic, which, in turn, will generate income for Riordan Manufacturing. The plan should cater for the long term needs of the employees which will solve the employee turnover challenge for longer periods in future. The compensation and rewards package has to be attractive to the workers so that they will accept the offer and work with the management effectively. The teams are prompted with the challenge of deciding how they want to communicate to the corporation their ideas and proposals regarding the final package.
Evaluate the Results
The outcomes are based on the stated procedures in the employee evaluation as well as additional explanations in the procedures. The situation with employee turnover contrasts the initial study as workers get away with the recently reintroduced packages at Riordan Manufacturing. This procedure will permit Riordan to put the custom of liberal punishment in the contextual dilemma as operative morale, and devotion to the corporation will increase within a few months of the design of the new packages. The welfare of the employees will be prioritized since personnel will be able to be content and know that the corporation is there for them.
Conclusion
The words “wanting” and “needing” have to define the corporation. This means, with a compensation scheme that attracts workers, helping all of them to feel like they have a part in Riordan’s achievements, and that the management gives them a chance to use their skills and expertise exhaustively. Through proper employee motivation, morale and work ethic will improve, andthe organization’s income will increase noticeably.
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