Riordan Manufacturing
Problem Solution: Riordan Manufacturing
The company that has seen declining sales and uneven profits the past two years, sought to revive growth by implementing a new strategic plan of changing the way it manufactures and markets its products. The changes to manufacturing included the implementation of a Six Sigma quality approach, which restructured plant employees into teams and redirected work to China. Changes were also made to the sales processes, and a customer-relationship management (CRM) system approach was adopted. This allowed for the servicing of customers with sales teams instead of individuals. This strategy was implemented before management had devised and implemented a plan to align the human resource management area with the organizational strategy. This new strategic plan follows a lineage of three plant acquisitions since opening its doors in 1991, in which unresolved integration and process issues still exist.
This current change has created a sharp decline in employee morale, disagreements between management of what are the important issues, and likely future employee retention problems. Additionally, employees appear to have a confusion of their role in the company and the overall vision, an understanding if they can contribute to the organization, and a lack of faith in management to provide perceived equality, recognition and opportunities.
To align the human resources management processes with the changes and new company strategy, Riordan must develop a comprehensive motivation and rewards strategy for organizational effectiveness. Additionally, the company will develop better processes to facilitate an efficient working environment, conducive to the growth and development of employees in a learning organization.
Situation Analysis
Issue and Opportunity Identification
Riordan is a manufacturer of plastics for customers internationally, and employs 550 people. The company is a...
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