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Gap Analysis: Riordan Manufacturing
Riordan Manufacturing is a leading manufacturer of plastics, with about 550 employees. The company is currently facing employee motivation issues. The employees are unhappy with their current pay and benefit packages, lack of recognition, feelings of not being challenged in their current positions, seeing no room for advancement in the company and lack of training. In order for Riordan to maintain their current staff motivated and have an energetic workplace, management will need to reorganize the current culture to meet the needs of their employees.
















Situation Analysis
Issue and Opportunity Identification
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...