Riordan Manufacturing
...550 people with projected annual earning of $46 million. Production is divided among three plants in Albany, Georgia, Pontiac, Michigan, and Hangzhou, China. Research and Development is conducted at corporate headquarters in San Jose, California. The company's major customers are automotive parts manufactures, aircraft manufactures, the Department of Defense, beverage makers an bottlers, and appliance manufactures.
Declining sales and uneven profits over the past two years has forced the company to change it sales processes and prompted them to adopt a customer - relationship management system. Customers are now serviced primarily by sales teams rather than single salespeople. Teams include a salesperson, product engineering specialist and customer service rep. The idea is that a team approach will improve sales.
Riordan has a diverse employee make-up and recognizes the importance of innovation, teamwork and providing customers with new products but fails to adequately consider employee motivation and rewards.
Situation Analysis
Issue and Opportunity Identification
Due to inadequate compensation management is concerned there will be a loss of key employees in the research and development and information technology department. Other managers believe job redesign and team approach is the best approach to motivate employees and achieve success. Riordan's Director of Human Resources believes she has been treated as nothing more than a personal manager. She conducts the annual employee surveys but has never seen any changes implemented as a result of the surveys. The CFO, Dale Edgel, believes the current compensation systems are adequate. The CEO is concerned with a loss of share value with the retirement on the horizon.
The implementation of change in manufacturing and marketing went from an individual approach to a team approach. The adoption of the...
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