Problem Solution: Riordan Manufacturing
...the past few years. Riordan Manufacturing has been long established in the industry but has been slow to react to the changes in declining sales, erratic profits and employee turnover. Riordan’s restructure of the U.S. plants, into self-directed work teams, has created astounding turnover rates. Instead of taking immediate action when the declining sales and turnover began, Riordan waited and allowed the attack of the market share, profits and turnover to occur. Recently, the annual employee survey revealed a dramatic decrease in job satisfaction, compensation and benefits. Many employees are currently being under paid by 15% the markets needs and compensation is tied towards seniority rather than performance based. The current reward system is overwhelmingly perceived to be unfair by employees. Employee motivational theory reflects, “Employee perceptions are the critical elements in motivation” (Dreher & Dougherty, 2001).
Upper management is aware of the growing and immanent problems and should devise and implement an employee incentive and benefits plan which will reestablish Riordan as a leader in manufacturing and human capital retention. The Riordan solution must be specific, bold, ensure measurable success and yield positive risk through implementation: “good decision makers prefer to manage risk.” “They accept the fact that consequential decisions entail risk, they do everything they can to anticipate the risk, minimize it, and control it.” (Bateman & Snell, 2004, p.14-15) Riordan Manufacturing must implore researching best practice solutions and develop their own alternative solutions plans. The following essay reflects these alternative solutions with analysis, risk assessment, and mitigating techniques. From this research an optimal solution was generated with correlating implementation plan and full evaluation of the results. The turnaround...
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