Problem Solution: Riordan Manufacturing
Problem Solution: Riordan Manufacturing
Riordan Manufacturing is changing its business to a more customer relationship management style. This change has led to concern by the employees who believe that the rewards system at the company is lacking. Furthermore, employees believe there is nowhere to advance in the company. The current overall morale is low and the company is experiencing a high turnover where staff is leaving due to decrease satisfaction in the company.
Riordan has hired an outside consultant to review the current compensation and make recommendation on how to improve the issues the company is facing. HR needs to work with the organization and support the overall strategic business plan and objective to help Riordan improve the company image. According to Dreher and Dougherty (2001), “General managers need to be aware of what constitutes sound career management and assessment practices and need to know when these types of systems should be designed and implemented” (p. 133).
Situation Analysis
Issue and Opportunity Identification
Organizations are increasingly adopting variable pay programs to reward, motivate and retain their talent. However, as these programs grow in complexity and demand correctly administering the programs and applying variables such as company or department performance to total compensation, becomes a daunting, difficult task. Riordan Manufacture understands that compensation and reward are an important part in showing the employees they care as well as the company is willing to retain them. The company also wants to make sure that whatever change made will be effective. Effective companies have teams who a ...