Gap Analysis: Riordan Manufacturing

Running head: GAP ANALYSIS: RIORDAN MANUFACTURING

Gap Analysis: Riordan Manufacturing

Carla Healy

University of Phoenix /MBA 530

October 08, 2007

Gap Analysis: Riordan Manufacturing

Riordan Manufacturing has been suffering from a number of employee issues and a decline in revenue. This company has recently changed some of the individual sales model into a more team-based approach. Employees lack teambuilding training and opportunities to professionally advance. The Human Resource department is dealing with several different generations of employees. Each generation of employees at Riordan has their own beliefs, values, attitudes, and expectation regarding the work place. One reward may please genYers, yet not attract genXers. Ð'ÐŽÐ'§Human resource professionals indicate that, on average, their workforce consists of approximately 10%Veterans, 44% Baby Boomers, 34% GenXers, and 12% Nexters (Burke, 2004, p. V)

The key players in this scenario are:

Ð'„h Michael Riordan/ President and CEO: He is the founder and is the owner of 80% of the stock. He believes in taking care of his employees.

Ð'„h Kenneth Collins/ Senior Vice President of Research and Development: A brilliant technician. He has some issues with the manufacturing team.

Ð'„h Hugh McCauley/ Chief Operating Officer: He believes that most motivation issues are the result of poorly designed processes. He believes in improved job design.

Ð'„h Charles Lacy/ VP of Sales and Marketing: Strong advocator for compensation based on teams. He has created some team processes.

Ð'„h Maria Trinh/ Chief Information Officer: Concerned about losing staff due to inadequate compensation. Only interested in IT professionals.

Ð'„h Yvonne McMillian/ Director of Human Resources: Her opinion does not count with some of the male leadership. She has never seen any changes come from the employee satisfaction survey.

Ð'„h Dale Edgel/ Chief Financial Officer: He believes the current compensation packages are adequate.

Ð'„h Barbara Masterson/ Human Capital consulting: She has experience with several high-tech organizations.

Situation Analysis

Issue and Opportunity Identification

Riordan Manufacturing has employees who are a part of three major demographic groups. The company has baby boomers, genXers, and genY employees. Recently the employees completed an employee survey. The results from the survey showed an overall decrease in job satisfaction, an increase in employee turnover, and other dissatisfactions related to the compensation and other benefits (Riordan Manufacturing: Scenario, 2007). The Human Resources Director Yvonne McMillian does not respect the purpose of the employee surveys because she has never seen any change come from them.

Some of the leadership members are not in agreement with the changes that will need to occur in order to big about the vision of the company. Departments have been restructured from an individual sales model to a team approach. There appears to be little or no training related to the new team sales approach. The leadership members also have their own opinion regarding the current reward and compensation system. The CEO Michael Riordan has expressed his concern about the decline in employee loyalty however he does not want to spend money fixing this issue because of the lost of profits over the last two years. The CEO and other leadership have an opportunity to make decisions today that will benefit the company in the future (Dougherty & Dreher, 2001).

The current reward system is based on individual performance measures. Up until recently, this reward system was applicable to the business goals and job objectives. However, Riordan is now team-oriented especially in the sales department. Aligning rewards and compensation systems with the firmÐ'ÐŽÐ'¦s business strategy. Ð'ÐŽÐ'§This strategic approach would also require a partnership orientation of the firm towards its employees, including a focus on employee behaviors of teamwork, cooperation, and team efforts towards continuous improvement of systemÐ'ÐŽÐ'Ё (Dougherty & Dreher, 2001, p. 2)

Stakeholder Perspectives/Ethical Dilemmas

CEO Michael Riordan firmly believes that the company needs to take of its employees and they will in turn be loyal. He is starting to think about retiring and is not satisfied with the way Riordan is business performance. Michael has 80% of the companyÐ'ÐŽÐ'¦s stocks. His current vision is not being seen through the entire organization. Michael stated that he has two choices regarding the compensation and reward system: 1. to overhaul the current reward system or

2. find new strategies. He mentioned piecemeal offering to employees however this will only temporarily settle down employees. This idea does not promote success for the future. Managers appear to be verbalizing their concerns regarding their department. This concern is not from a company aspect and it is limited to individual departments. Employees have expressed their concerns regarding the poor pay and lack of ability to promote up. The lack of overall job satisfaction does not encourage employees to work harder or give more than they have to.

End-State Vision

Riordan has developed a reward and compensation system that rewards all employees. Employee turn over has decreased to less than 10% with in the first year. Riordan has put value into every employee and the number of qualified applicants has increased. Applicants are eager to get their foot in the door at Riordan. Employee moral has increased due to the reward system and team building trainings. Riordan was able to analysis and acknowledge the issues that needed to be addressed by conducting employee surveys. New organizational culture has changed the employeeÐ'ÐŽÐ'¦s performance and productivity.

Gap Analysis

Riordan is a global plastics producer with a projected annual earning of $46 million. In order to remain competitive in the industry, Riordan has made several strategic changes to manufacturing and the marketing of their products. The last two years have been difficult because of the large decline