Riordan Gap Analysis
Gap Analysis: Riordan Manufacturing
Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. Production is divided among three plants: plastic beverage containers in Albany, Georgia; custom plastic parts in Pontiac, Michigan; and plastic fan parts in Hangzhou, China. Research and Development is conducted at corporate headquarters in San Jose, California. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers (Riordan Manufacturing Scenario, 2008).
The company has recently been struck with high employee attrition rates due to increased dissatisfaction and low sales have been reported for the past two years. The company has a 15% lag in compensation package for key programmers. The compensation packages are focused on individual employees, which does not address key employee needs. Many employees have left the company and many are planning to in the near future.
Situation Analysis
Issue and Opportunity Identification
Riordan Manufacturing is currently facing issues like low revenue, dissatisfied and unhappy employees and shortage of staff because of increased attrition rates. The employees in Research and Development department believe that they are not being challenged enough and that their abilities are not being used to the fullest. Kenneth Collins, VP Research and Development believe that employees in his department know that they can be paid more elsewhere for the same work (Riordan Manufacturing Scenario, 2008).
Focusing on McClelland’s Learning Needs theory reveals the importance of understanding that needs of employees may vary and be different based on the industry and the employees themselves. Three of these are the need for achievement the need for affiliation, and the need for power. High need for achievement is a characteristic...
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