Running head: RIORDAN MANUFACTURING BENCHMARKING
Riordan Manufacturing Benchmarking
University of Phoenix
Human Capital Development
Dr. Alvin H. Steward III
January 31, 2008
Riordan Manufacturing Benchmarking
In order for any company to gain competitive advantage over other companies in the same industry, the management teams need to understand the importance of improving business results through people. Employees are the maker or breaker of any company. Without increased motivation and morale of the employees in a company, the company risks losing valuable employees and will be at a disadvantage in attracting potential top talents. As the economy continues to change and competition continues to increase, businesses have to constantly find ways to satisfy their employees in order to retain the best ones. As Riordan Manufacturing (RM) will strive to meet the competitive needs of the employees within the company and prospective job candidates, they will also need to allure the individuals to the company.
The issue facing Riordan Manufacturing (RM) are; retaining employees, career and training development, human resource philosophy, motivation, and management of restructuring process. Human resources are an integral part of an organization. An organization cannot survive without human resource policies and procedures. вЂњHuman resource activities in a company must directly support business strategy and the satisfaction of customer needsвЂќ (Walker, 2002, p. 59). For most companies that enter a global market, human resources play a huge role in the companiesвЂ™ success by updating policies to accommodate the new cultures. This analysis will be a problem solving approach for HR to implement and develop a comprehensive staffing strategy to meet organizational effectiveness and make RM a continued market leader through a solution based selling strategy.
The company has made several strategic changes in the way it manufactures and markets its products and has chosen to adopt a customer relationship management (CRM) system. Unfortunately, as changes have been implemented, employee retention numbers have declined and there has been an overall decrease in job satisfaction, particularly in areas of compensation and benefits. As a global plastics producer, Riordan Manufacturing (RM) employs 550 individuals (Anonymous, 2008). The business has projected annual earnings of $46 million (Anonymous, 2008). The company is a division of Riordan Industries, a Fortune 1000 enterprise. RM has production divided among three plants. Plastic beverage containers are produced in Albany, Georgia. Custom plastic parts are manufactured in Pontiac, Michigan. Parts for plastic fans are produced in Hangzhou, China. Corporate is headquartered in San Jose, California with Research and Development located there as well. Riordan maintains major accounts with the automotive parts industry, aircraft manufacturers, and Department of Defense. Other major customers include beverage makers and bottlers, and appliance manufactures (Anonymous, 2008).
The company is now an вЂњindustry leader in the field of plastic injection moldingвЂќ (Riordan, 2008, p. 1). Riordan, a global corporation in the plastics industry was quick enough to acknowledge the issue. However, change without proper planning will have consequences and Riordan is no exception. Main consequences include employee turnover, low moral due to uncertainty, and declining sales. Riordan Manufacturing, Inc. a global corporation in the plastics industry was quick enough to acknowledge the issue. However, change without proper planning will have consequences and Riordan is no exception. Main consequences include employee turnover, low moral due to uncertainty, and declining sales.
Employee morale is a huge influencer on the businesses productivity. An organization with low turnover and happy employees tend to perform better and contains a workforce full of loyal employees than those companies who have high turnover but unsatisfied employees. Employee motivation, declining morale and work ethics, declining sales, and the restructuring of the sales teams are some of the issues Riordan is currently facing. Employee motivation is currently low at Riordan because the employees are not feeling