Riordan Manufacturing is the industry leader in the field of plastic injection molding and using polymer materials to provide solutions to customer's challenges. With over 550 employees, the production of the organization is divided among three plants: plastic beverage containers in Albany, Georgia; custom plastic parts in Pontiac, Michigan; and plastic fan parts in Hangzhou, China. The Research and development department is located at the corporate headquarters in San Jose, California.
Due to declining sales and profits, Riordan has made several strategic changes in the way the organization manufactures and markets its products. To help increase sales and profit, Riordan Manufacturing has adopted a support business strategy?"strategy refers to the fundamental direction that an organization has chosen" a customer-relationship management system which customers are now served primarily by sales team rather than by a single salesperson. (Milkovich and Newman, 2004, p.31). The changes that have been introduced will "encourage behaviors that are compatible with organizational goals" (Dreher and Dougherty, 2001).
Since the changes in strategy, Riordan has experienced increased turnover rates, which appear to be related to lack in the areas of motivation, compensation, reward, and recognition. Higher employee motivation will lead to greater creativity, productivity, high morale, and minimal turnover within the organization. Sales teams rather than a single salesperson now service Riordan's customers, with each team focusing on a particular customer segment. The team approach is part of the strategic strategy to improve sales. After discussion of the issues and opportunities facing Riordan, alternative solutions to assist in making the implemented changes successf ...