MBA530_GapAnalysis_Riordan

MBA530_GapAnalysis_Riordan - Gap Analysis: Riordan...

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Gap Analysis: Riordan Manufacturing 1 Running head: GAP ANALYSIS: RIORDAN MANUFACTURING Gap Analysis: Riordan Manufacturing Your Name Goes Here University of Phoenix
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Gap Analysis: Riordan Manufacturing 2 Gap Analysis: Riordan Manufacturing Riordan Manufacturing is an international plastics manufacturer with 550 employees and $46 million in projected annual revenues. Recently, Riordan made several strategic changes in the way it manufactures and markets its products. Declining sales and uneven profits over the past two years not only forced the company to change its sales approach but also prompted it to adopt a customer-relationship management (CRM) system. Sales teams rather than single salespeople now service customers with each team focusing on a particular customer segment. Teams typically include a sales person, product engineering specialist and customer service rep. The plan is that the team approach will improve sales (UOPO, 2007). Riordan Manufacturing has seen a consistent drop in employee satisfaction over the last 12 months and the increase of voluntary separations has doubled in the past year in every department. These numbers are alarming and speak of issues that could lead to disaster for Riordan if they are not recognized and quickly addressed. Situation Analysis Issue Identification The first issue at hand is employee retention. It is evident that employees are leaving for higher pay. It is possible that Riordan is paying under the market average for these positions. This is a major concern for the research and development area in saving vital employee knowledge. Secondly, the employee incentive program is an issue not only for management but also for the current employees. The sales incentives are structured for an individual salesperson rather than for a team. This issue has come about as a result of the change in the sales approach from individual accounts to a team approach incorporating a sales person, a product engineering
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Gap Analysis: Riordan Manufacturing 3 specialist, and a customer service representative with support from research and development (UOPO, 2007). The sales process has changed but the incentive/bonus process has not aligned itself to the change. Another issue for Riordan is employee development and training. Riordan has done little to promote the training or development of its employees in recent years, an approach that would be a strategic advantage for the company. Training and development not only helps to attract top performers but will also provide incentive for retention (Dreher & Dougherty, 2001). The human resources department reports to the finance department with no direct influence with the CEO, making it inefficient. Riordan needs a superior human resource management system to gain strategic advantage in human capital management (Dreher & Dougherty, 2001). Finally employee satisfaction has dropped dramatically in the past year.
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This note was uploaded on 03/28/2008 for the course MBA 530 taught by Professor Whoknows during the Spring '08 term at University of Phoenix.

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MBA530_GapAnalysis_Riordan - Gap Analysis: Riordan...

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