Gap Analysis: Riordan Manufacturing
Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million (University of Phoenix, 2008). Recently internal strategic changes were made as it relates to how the company manufactures and markets it products. CEO Michael Riordan along with the leadership team implemented a change in its operations system that was initially the cause of it problems. The decline in sales and profits prompted the company to move towards a customer-relationship management system. The intention of this change was to improve the current relationship with their clients. This sales area would now function as a team focusing on servicing the customer unlike in the past when a single salesperson was responsible. The perspective was that customer satisfaction would increase. During the decision making, Riordan Manufacturing lost focus on who is the backbone of its organization. The employees are the ones that have enabled the company to succeed. The company recently administered a customer service survey and it was determined that overall job satisfaction was low compared to previous years and there has been an increase in voluntary terminations. The employees feel underpaid and not appreciated. The pay and incentives that were once aligned with the company focus, no longer met the needs of the employees. The employees were use to being compensated monetarily and this new change decreases their individual rewards. Faced with a decline in employee morale and low work ethics Riordan Manufacturing needs to revisit its compensation and benefits structure to increase employee moral and motivation. Increased employee motivation will lead to an increase in creativity, productivity, high morale and minim ...