Gap Analysis: Riordan Manufacturing
Kevin Williams
University of Phoenix
Gap Analysis: Riordan Manufacturing
This is a Gap Analysis for Riordan Manufacturing. It defines end state goals and a managerial vision and shows the disparity between current and future states
Situation Analysis
Issue and Opportunity Identification
Riordan has implemented radical process change and as a result has seen organizational upheaval at all levels. Key among the effects is a decline in employee retention. Worker dissatisfaction, one of the main reasons for voluntary turnover, can be linked to the current compensation system used by Riordan.
The opportunity exists for Riordan to stabilize its workforce by utilizing the business intelligence data provided by the HR surveys, performance data and consultant analysis.
Stakeholder Perspectives/Ethical Dilemmas
This current situation affects everyone. Employee moral affects motivation which in turn affects performance. Employee performance can be directly linked to firm performance. Motivation—the willingness to exert effort in a particular way—is an extremely important factor in understanding or predicting employee behavior. It is a factor that often responds to changes in HR systems, particularly reward systems. George Dreher, Thomas W. Dougherty (2001) Chap 2 pp 14
With declining employee moral and reduced work ethic, Riordan as a corporate entity is at risk. Just as high performance can catapult a company to excellence and increased profits, lackluster performance can sink a firm’s reputation. This is because it negatively affects the one element to which all firms are susceptible; the customer.
Riordan’s dilemma at this point is how to compensate its employees in an equitable fashion, a key ...