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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 that employs 550 people with projected annual earnings of $46 million. Due to declining sales in the past couple of years, Riordan has changed the sales process by creating a customer relationship management system (CRM) where the customer, classified by segment, is serviced by a team. The team includes a product engineer, sales agent, and a service representative. The goal is to increase sales by increasing customer focus. With this team format, employee motivational problems arose. This also highlighted weaknesses in other parts of the organization in terms of compensation and retention. This paper will frame a problem statement, proposed solution, end-state vision, and risk of the solution to Riordan’s management team.
Situation Analysis
Issue and Opportunity Identification
Riordan recently conducted an employee survey that showed a decrease in job satisfaction, particular in the area of compensation (University of Phoenix). The employees of the company fall into three general categories: the managerial staff made up of mostly baby boomers, middle-aged professionals, and the young, less skilled manufacturers. The compensation plan currently in place is based on individualism and seniority. Michael Riordan, the CEO, has acknowledged that something must be done to the rewards or compensation process currently in place. Each department manager has a unique and understandable self-serving perspective on how to address the problem. Most involve increasing the pay l ...