Problem Solution: Riordan Manufacturing
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Running head: PROBLEM SOLUTION: RIORDAN MANUFACTURING
Problem Solution: Riordan Manufacturing
Problem Solution: Riordan Manufacturing
Riordan Manufacturing is a global plastics producer who is trying to recover from slumping sales over the last two years by changing its sales processes to a new customer-relationship management system. Due to management focusing more and more on the sales, the most important resource the company has, its employees have been overlooked and now the company is starting to recognize that they might have a personnel problem. Now the company is starting to realize that they might be behind based on compensation and benefits, so now they are hiring outside firms to try to discover the root of employee’s concerns.
Situation Analysis
Issue and Opportunity Identification
Riordan Manufacturing is a Fortune 1000 company which employs 550 people with plants in Georgia, Michigan, and China. Over the last two years, sales have started to decline, so the company has decided to make several strategic changes in the way it manufactures and markets its products. The company has not only changed it manufacturing techniques but also its sales processes by adopting a customer-relationship management system. As the changes have been implemented, the management has seen employee retention start to decline at an alarming rate. Recent performance data has identified that the current reward system is not based on performance, but a cost of living increase, seniority, and position. Michael Riordan, the CEO of Riordan Manufacturing, knows that something must be done, so he’s considering his options about the rewards system and how to motivate the employees.
Every manager within the company has a different view of what direction Michael should take the company. One manager thinks that the retention employees have nothing to do with compensation, but job design. Another manager thinks that the whole company revolves around her department, so most of the resources should be focused there. And another manager does not seem to be concerned with employee morale as much as she is about her department’s role within the company. With every senior manager wanting to pull the limited resources the company has in completely different directions, there is no way that the company is going to recover from their current dilemma and continue to lose valuable employees. While the managers are focusing on trying to win resources, employees are abandoning the company for various reasons. According to Heathfield (2007), “People leave managers and supervisors more often than they leave companies or jobs. It is not enough that the supervisor is well-liked or a nice person, starting with clear expectations of the employee, the supervisor has a critical role to play in retention” (p. 1). Management has to take a look at themselves before they start jockeying for more resources for their departments. Even if the manager gets the resources they want and if they are a problem, they will continue to loose employees.
The company has many opportunities to prove themselves within the eyes of their employees. Michael has currently hired an outside organization to come into the company and try to find the root cause of employee turnover and low job satisfaction. The firm has come up with three viable options for Michael to consider, but the time and costs are the major issues that will determine which recommendation will be picked in the end.
Stakeholder Perspectives/Ethical Dilemmas
Riordan Manufacturing has a lot to loose if they cannot turn the company around after a two year decline in sales. Michael Riordan is the CEO and 80% owner of the company that he created and has the most to loose if the company does not succeed. Michael is accountable and responsible for the overall health of the company. He has to make the overall decisions to keep the company on the right track and to keep the company on a successful path. The more successful the company, the healthier the company becomes. If the health of the company starts to decline, then Michael is closely looked at and held accountable for the poor health or the company. For Riordan, Michael knows that he has a daunting task ahead of them by trying to revive the company and he has accepted this responsibility. He knows that something has to be changed and he is concentrating on the correct steps to resolve the situation.
Management has the responsibility to the employees to make sure that they have the resources and training they need to complete