Problem Solution: Riordan Manufacturing
Problem Solution: Riordan Manufacturing
The following paper will describe the current state of Riordan Manufacturing, a plastics manufacture, and a leader in their industry. Currently they are having serious problems with employee turnover, low moral and reduced employee productivity. The senior management staff is trying to determine how to solve these issues, this paper will help Riordans human resources department identify the issues and recommended the optimal solutions for them.
Situation Analysis
Issue and Opportunity Identification
Riordan Manufacturing is a global plastic manufacturing company employing 550 people with projected annual earnings of $46 million dollars. (UOP Material, 2006) Currently they have had a large drop in employee moral and effectiveness, and an increase in employee turnover, which upper management of Riordan believes to be due to the current reward system in place for the employees. The current reward system is not based on performance; rather the system is based on cost of living increases, seniority and position.
This section will identify a few key opportunities for Riordan Manufacturing to implement, which can build employee moral, effectiveness, and loyalty to the company. The first issue that has been identified in table 1 below is employee motivation. Employee motivation is currently low at Riordan because the employees are not feeling recognized in their accomplishments, the employees feel that the pay is low, the reward system is not fair to everyone and is not based on individual performance. Motivation is a factor that often responds to changes is HR systems, particularly reward systems. (Dreher & Doughert, 2001) Installing an effective rewards and recognition program in most cases can be very beneficial to companies. Many companies think that they cannot afford these programs, but the more the employee earns the more the company benefits, this is a win-win situation for both the...
View Full Essay