Essay Riordan Manufacturing

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Situation Analysis Issue and Opportunity Identification Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Recently, Riordan made several strategic changes in the way it manufactures and markets its products. Because of declining sales and uneven profits over the past two years, Riordan adopted a customer-relationship management (CRM) system. Primarily sales teams instead of single salespeople, with each team focusing on a particular customer segment, now service customers. Teams typically include a sales person, product engineering specialist and customer…show more content…
2001). Three Key Research & Development employees have left within the past three months and there are an increasing number of employee complaints about compensation and decreased satisfaction. Identifying and understanding an individuals value system is an important step to deal with the employees dissatisfaction with compensation and to define adequate compensation. Riordan can develop their rewards system by interpersonal intelligence; analyzing their employee's characteristics; Intelligence Aptitudes Knowledge Temperament Preferences Expectations. Once these attributes are understood, Riordan HRM can develop a rewards system that is best suited for the company and employees. Riordan's annual employee satisfaction survey results indicated a strong trend of employees possibly leaving for another company offering 10% more money. The survey in 2001/02 results was the complete opposite of the 2003/04 results which indicates a downward trend; leading towards a retention issue. An opportunity Riordan can consider is identifying components of effective retention initiatives. Riordan can develop and implement many retention and career development processes starting with various pay types; Merit, Lump Sum, Commissions, Individual Incentives, Stock Options. The effectiveness of these retention options are determined by interpersonal intelligence gathered during interviews and surveys (Dreher.G & Dougherty, T . 2001) Riordan faces serious
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