Problem Solution: Riordan Manufacturing
Riordan Manufacturing (Riordan) is addressing shifting business strategies that value quick product adaptations, streamlined organizational structures, and team-based work. In addition, worldwide markets are experiencing a severe talent shortage. Riordan reacts to uneven profits and declining sales by making strategic changes in its manufacturing and marketing efforts. Adopting a team based focus, Riordan encounters unexpected difficulties. Unfortunately, decreased job satisfaction and reduced productivity have been Riordan’s reward.
After extensive management meetings and employee surveys, Riordan’s CEO presents the following findings from a human resource (HR) consultant: The organization will need to address its existing HR systems to determine if it effectively supports its strategic goals. Employees have expressed much dissatisfaction with lack of professional challenges and lack of opportunities to advance. Additionally, lack of trust is mounting as employees view their assessment process as inconsistent, subjective, and supporting individual performance. Riordan’s critical talent has also voiced a desire to seek employment elsewhere as competitors offer better salary compensation. This critical talent would also take sensitive proprietary information to competitors.
Situation Analysis
Issue and Opportunity Identification
Riordan is a $46 million dollar global plastics producer with three production plants located in Georgia, Michigan, and China. Riordan has experienced slumping sales and erratic profits the previous two years. Determined to correct this trajectory, leadership focused its strategy on a team-based CRM system.
Given the current reward system that recognizes seniority, positions, and cost-of- ...