Problem Solution: Riordan Manufacturing
Problem Solution: Riordan Manufacturing
Riordan Manufacturing, a global plastics producer, employs approximately 550 people with projected annual earnings of $46 million. The manufacturing company is owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion.
Riordan's production is divided into the following three categories: plastic beverage containers made in Albany, Georgia; custom plastic parts made in Pontiac, Michigan; and plastic fan parts made in Hangzhou, China.
With the products being produced at the different plants, Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the United States Department of Defense, beverage makers and bottlers, and appliance manufacturers (University of Phoenix, 2006).
Describe the Situation
Issue and Opportunity Identification
Riordan Manufacturing, with over 500 employees has a problem with employees staying with the company. With this in mind, the overall employee morale is low; the Sales Department's performance has declined; costs of employee training and redevelopment of the reward system; and motivational strategies for the company as a whole (Table 1).
Employee morale is low throughout the company as indicated in the work performance results in 2004 (Employee Turnover Rate, 2006). By redesigning and reintroducing the reward system that allows for all employees, not just the management of the company with seniority, to obtain incentives provided in this reward system, the morale and work ethics of the employees will increase thus increasing employee retention rates, etc.
With that in mind comes the next issue ? Sales Department's overall perf ...