Problem Solution: Riordan Manufacturing
Riordan Manufacturing is facing declining sales with an up and down profit margin that has caused the company to implement a new strategic plan. The company has also outsourced some of its work to a new manufacturing plant in China to alleviate some of the high cost of labor in the US, which should help with the company’s profitability. There has also been a restructuring of the sales department as they “adopt a customer-relationship mangement (CRM) system” (Secnario, 2007). The changes in the company’s strategic plan, the outsourcing of jobs and the change in the sales department from an individual salesperson to a sales team has impacted employee morale, motivation and retention. The annual employee survey indicated a decrease in employee job satisfaction, “particularly in the areas of compensation and benefits” (Scenario, 2007).
Clearly, management and human resources (HR) need to re-examine and revisit the current staffing practices to determine employee motivation. “However, staffing practices can influence motivation levels within work groups and training and development practices can be used to increase the motivation to perform in a variety of ways” (Dreher and Dougherty, 2001, p. 45). A clear understanding of what the employees consider motivational will be helpful in reducing attrition, increasing productivity and maintaining employee satisfaction.
Situation Analysis
Riordan Manufacturing implementation of its new strategic plan has caused internal issues for the company and the employees and could likely adversely affect the company’s finances. Employees are no longer able to work individually to secure sales that will net high commissions, but will have to share the commission checks with other employees ...