REWARD MANAGEMENT Reward Management in a Competitive Environment



Reward Management in a Competitive Environment

Introduction

This paper will critically review of reward management in a competitive environment of Riordan Manufacturing in the light of academic literature on Human resources management that I have read. Riordan Manufacturing is an innovative and successful global plastics producer by building a motivated and energized workforce by implementing a comprehensive motivation and rewards strategy to remain a successful global manufacturer.

This paper provides a critical review of reward management in a competitive environment. The paper also identifies opportunities and issues, defines the problem, and develops a set of alternative solutions. The objective of this paper is to exhibit an organized approach using the 9-step Problem-Solving Approach to provide Riordan Manufacturing with legitimate solutions to challenges presented. In conclusion, the paper recommends the paramount alternatives to implement in order for Riordan Manufacturing to be the global industry leader in plastics production..

Discussion

Issue and Opportunity Identification

Several challenges Riordan Manufacturing must overcome in order to accomplish the company's organizational goals. Riordan Manufacturing needs to overhaul the current flawed reward system into an effective rewards system that aligns the organization's strategy with compensation and incentive packages. Riordan Companies is having employee issues regarding motivation. One of the largest concerns for the company is the current reward system in place. Riordan recently changed their manufacturing and marketing of their products from individual service to a team based service. This requires a change in their current reward system as well. Riordan's current reward system is based on cost of living increases, seniority and position. The sales department managers would like to see a team based commission structure put in place, but the employees may not like their commissions based on the performance of the team. The remainder of management at Riordan would like to see a base pay increase across the board at Riordan to match the current market salaries.

In a recent performance data survey at Riordan, 25% of the employees are classified as high achievers, a large group of mid-tier performers and a small group of people who were not performing well at all. “Employees who possess high levels of “need for achievement” would be especially well-matched to the use of bonuses, commissions, or other pay strategies that link rewards directly to the level of one's individual productivity.” (Dreher & Dougherty, 2001, p. 6) The sales department would be a good place to implement a productivity based commission or bonus reward system. Other departments at Riordan will not be able to use their productivity as a base for a bonus. These departments should use the company revenue as the base for their bonus.

Employees currently believe they are not getting proper recognition for a job well done at Riordan. This would be an area that managers need to be aware of and trained on how to properly recognize [Split infinitive—try "properly to recognize", "to recognize properly", or place "properly" after the direct object] employees. Employees who do not feel recognized will not be motivated to ...