Mba 530 Problem Solution: Riordan Mgf

Problem Solution: Riordan Manufacturing

In order for any organization to achieve the highest-level performance from its employees, a company needs to understand what motivates the employee. The motivation and rewards that employee’s needs from his or her employer and what his or her employer may be offering them most times will have different measurements. Studies have shown that if you increase employee motivation, it will increase creativity, productivity, high morale and minimal turnover within an organization.

Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. Recently they made several strategic changes in the way it manufactures and markets its products. In addition, the company has seen a decline in sales and profits. Many internal changes have been made and there has been a consistent drop in employee satisfaction and an increase in voluntary terminations. If something is not done quickly to improve the structure of the organization, Riordan will have difficulty in retaining the existing employee base (University of Phoenix, 2007).

Situation Analysis

Issue and Opportunity Identification

Riordan has many issues facing the company in which the senior leadership team and the Board of Directors will need to address in an expedient manner. This is not to say that the company does not have just as many opportunities to shine and turn around the problems they are currently facing.

In reviewing the scenario, this student has identified the following issues that Riordan will need to address. The first and most important issue is the fact that Riordan employees have already started to leave the company for higher paying jobs. If this continues Riordan’s turnover rate will increase and Riordan will lose a great deal of key employees to their competitors. In addition, Riordan employees feel they are not treated fairly and that their wage and benefits packages are not within the industry...