GAP ANALYSIS: RIORDAN MANUFACTURING
Gap Analysis: Riordan Manufacturing
Gina L. Wood
University of Phoenix
Gap Analysis: Riordan Manufacturing
Michael Riordan is concerned about decreased revenues and increased employee turnover at Riordan Manufacturing over the last two years. The release of three new products is highly anticipated, but with increasing dissention with the company, these plans are at risk. Mr. Riordan must act to evaluate, assess, and develop a plan to resolve pressing issues. In hopes of quickly identifying current issues, Mr. Riordan has hired a consulting firm to conduct an audit and recommend solutions that are reasonable and realistic.
Further ...view middle of the document...
This approach has led to the development of customer service teams comprised of a sales person, product engineer, and a customer service representative. The ultimate goal is to increase sales and revenue by providing exceptional customer care.
The leadership at Riordan has noted an increase in employee turnover since implementing the CRM concepts and restructuring plants into self directed work teams. Three years ago, the company began administering annual employee surveys, but the general consensus among employees, and some management, is that the surveys mean very little and are a waste of time. This most recent survey has shown a decrease in job satisfaction, employee morale, and work ethic. Some attribute this point to below market compensation and benefits.
There is contention among the leadership team as to where the problems lie. Barbara Masterson, of Human Capital Consulting, has correctly identified that there is a difference in opinion among the leadership team as to what the primary issues at Riordan are. It seems most of the effort is focused on changing the rewards system, but each individual department head has a difference in opinion as to how this should occur. The lack of consistency among the leadership team is contributing the organizationsâ€™ problems.
At issue is the apparent dissatisfaction of Riordanâ€™s employees with regard to their compensation and benefits package. Certainly monetary rewards are essential to keeping an employee productive and satisfied with their work environments, but non-traditional rewards may prove valuable. Employees need to feel needed and wanted by their employers. The employee wants to be challenged. Challenge leads to self gratification, success, and therefore positive performance. The employeeâ€™s at Riordan lack this. Not only is the rewards policy flawed at Riordan Manufacturing, but so too is the role of HR in this organization. The lack of a structured HR role in rewards has lead to the general lack of motivation and dissatisfaction of Riordanâ€™s employees.
The leadership team believed that a change in the sales model structure would solve their problems. â€œTo determine the appropriateness of HRM program changes it is critical for managers to first consider how the change will affect employee behavior.â€ (Dougherty & Dreher, 2001, p. 23). In order to expect positive returns from organizational policy changes the leadership team would have been wise to evaluate strategies, goals, results of potential changes, how to implement changes to ensure success and weighed risks versus benefits (to include cost effectiveness). Rather, the implemented change resulted in decreased retention rates and increased employee frustration levels. In order to affect change successfully, the root of the problems must be identified and repaired prior to enacting policy changes. Appropriate training and development must be drafted. Most importantly, the...