RIORDAN STRATEGIC MANAGEMENT

Riordan Strategic Management

Riordan Strategic Management

Introduction

The purpose of this paper is to evaluate Riordan Manufacturing's current situation and identify the changes that the company will need to implement in order to align its compensation and rewards systems to the new corporate sales strategy (University Of Phoenix, 2007). As Riordan focuses on the transformation, some changes are clearly needed in order to get the company ready to face the challenges and opportunities presented by this new approach. These changes will be key factors in ensuring the company's future growth and success.

Situation Analysis

Riordan Manufacturing (RM) is a international plastics producer with projected annual profits of $46 million. RM employees comprise three major demographic groups, baby boomers, generation Xs and generation Ys. Riordan's major customers are automotive parts manufactures, aircraft manufactures, the department of defense, beverage makers and bottlers and appliance manufactures. Riordan has recently made several strategic changes in the way it manufactures and markets its products. They have adopted a customer-relationship management system. After which the company conducted an employee survey which revealed a decrease in job satisfaction in the areas of compensation and benefits. For these reasons Riordan is losing sales and key personnel. They are in the middle of making important decisions on how and when to proceed with solving their issues (University Of Phoenix, 2007).

Issue Identification

Many employees are complaining about compensation benefits. Riordan is also underpaying key employees below the industry average.

Opportunity Identification

Riordan can revise the current compensation plan to fit the needs of the organization. Riordan can also review the industry pay scale and base it on the performance of their employees.

Stakeholder Perspectives/Ethical Dilemmas

Stakeholders in the Riordan scenario encompass administration, workers, Human Resources (HR), and customers. Management wants the difficulties rectify rapidly and as cost-effectively as possible. Management must balance the desires of worker compensation and customer cost sensitivity. Employees want to be compensated fairly, they want to be valued, and they want to feel that they play an important role in the success of the company. Employees must decide between looking outside the company for employment or staying and trying to make the company better. HR wants to be taken gravely by administration and become a part of the authority team. HR must balance the desire to be valued as a department and what is best for the company. Customers are a stakeholder because they want the best value (Ulrich and Wayne, 2006).

Problem Statement

Riordan manufacturing will increase sales and improve performance by developing effective compensation and reward strategies for strategy alignment and employee motivation.

End-State Vision

Riordan Manufacturing has become a leader in its industry in attracting and retaining high-performing and qualified employees. The company has successfully implemented reward and compensation systems that has enable the firm to staff its departments with the right individuals to support the corporate sales strategy. The new approach has helped the company increase sales and profitability and has made Riordan Manufacturing one of the most desirable companies to work for in the industry (University Of Phoenix, ...