Gap Analysis: Riordan Manufacturing
...where the Senior Management Team is facing financial and economical pressures. In response, Riordan made several strategic changes in the way it manufactures and markets its products. However, recent performance data shows that employees are not satisfied with the current reward system and the Senior Leadership also recognizes that is outdated and needs to be revamped. For any organization to be successful needs to identify gaps and find the right mix of compensation and benefits, and training and development programs that will help bridge those gaps, so employees can prepare themselves for greater responsibilities, higher salaries and more challenging roles to contribute to the overall success of the company.
This case analysis examines the problems and possible outcome of the Riordan Manufacturing Senior Leadership efforts to solve this predicament.
Situation Analysis
Issue and Opportunity Identification
From the Riordan Manufacturing, we learned that the company is a global plastic producer that employees 550 employees and has revenue in excess of $1 billion. The company has 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 a 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.
However, declining sales and uneven profits over the past two years forced the company to change its sales processes and adopted a customer-relationship system. In addition, the company implemented Six Sigma quality approach, some work was redirected to a new manufacturing facility in China, and plants were restructured into self-directed work teams. Unfortunately, as all of...
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