Reminton_Peckinpaw_Davis_Project_Management_Plan

Riordan Manufacturing Gap Analysis Jorge Baro MMPBL/530 April 25, 2011 Bob Ficken Riordan Manufacturing Gap Analysis Riordan Manufacturing is a successful Fortune 1000 company in the global plastics production industry and “boasts revenue in excess of $1 billion” (University of Phoenix, 2011). Declining sales and profitability in the last couple of years has pressed the company to reconsider its business model and transform the way it manufacturers and markets its products. Riordan Manufacturing has recently made a strategic change to a team-based sales customer relationship management system (CRM).The adoption of this new system has restructured the plans into self-directed work teams. These changes are already negatively impacting employee job satisfaction and retention (University of Phoenix, 2011). Unfortunately, there is dissention among the executive team as to the cause and solutions to the problem. Employee motivation has to be faced on a day-to-day basis by organizations. It can cause career dissatisfaction and employee turnover when not curved. Organizations should implement strategies that equally reward and motivate employees. To obtain the support of company stakeholders, CEO, and founder, Michael Riordan knows he has to make the company more effective by aligning its HR management practices with its employees and will need to make whatever changes are necessary to keep key employees. “Value from HR practices will be defined by investors, customers, line managers and employees. When HR professionals understand the theory and choices for people and performance, they will create action plans that invest in the most effective HR practices” (Ulrich & Burbank, April 21, 2011). Situation Analysis Issue and Opportunity Identification The new reorganization efforts and systems changes at Riordan Manufacturing have created many companies issues and opportunities. Riordan Manufacturing has implemented a new team-based CRM system causing several HR issues. Turnover is up by 50% with the highest increase of 75% at headquarters (University of Phoenix, 2008b). Employees complaints are up33% quarter to quarter (University of Phoenix, 2011c).Some of the problems were caused by the disagreement on primary issues by company leaders. Some of the challenges faced by Riordan Manufacturing include sliding retention rates, poor morale and motivation, declining opportunities for training and development, and confusing reward structures. Many Riordan employees are confused with their pay and job structure” (Dreher & Dougherty, 2002, p. 40). The perceived ratio of ones input to the outcomes received is an important part of the equity theory. Recognizing these issues will allow opportunities for the company to improve and turn HR issues around by focusing on precise communication, effectual leadership and collaborative team effort. Riordan Manufacturing must make the effort to fortify leadership, and build dedicated work teams. Successful motivated employees must receive the highest concentration to ensure a successful transformation. Stakeholder Perspective/Ethical Dilemmas The stakeholders in Riordan Manufacturing include senior leadership, employees, customers, investors, and Human Capital Consulting. All stakeholders share similar interests surrounding company growth and success but at Riordan “several conflicting interests and values have surfaced internally with the implementation of the company strategy” (University of Phoenix, 2011). Customers have the right to quality and fair prices for the products they purchase. They value consulting and total product solutions that align with their needs and goals. Ethical issues can arise if the company is only concerned with its own profit and loss and does not offer trained and skilled employees. They have the right to quality, knowledgeable, caring, and informative individual services. Riordan Manufacturing’s new customer relationship management system is aligned with customer interests as it provides enhanced product offerings and improved customer service. If implemented effectively, the strategy should serve to increase sales and built long-term customer relationships for continued business. Customers perceive they are being treated fairly and provided with quality service will create long-term relationships with the company. Investors and shareholders are interested in earnings per share (EPS), company growth and image, profit for the organization, and personal income. Companies are in business to make a profit. The new vision supports investors’ interests as transformation efforts will improve brand image, strengthen the company’s position in the market, and increase returns. Riordan manufacturing must be successful or it could lose its customers to competitors and investors will invest somewhere else. Employee’s interests are earning compensation, personal growth, career development, and company growth as this will make available the opportunities to advance and grow. They have the right to be respected, receive fair equitable treatment, and they value earned rewards. Riordan Manufacturing maintains every right to transform its business model, but it is in the company’s best interest to support employee wellbeing. The changes to work teams must be communicated effectively as it could divide employees and reduce productivity. Conflict occurs when employee satisfaction is down and employee commitment is low. ”On-the-job feelings of inequity revolve around a persons evaluation of whether they received adequate rewards to compensate for their contributive inputs” (Kinicki & Kreitner, 2004, p. 291). Recognizing the value of employees and promoting job satisfaction will enable the company to maintain healthy levels of organizational commitment, reduce turnover, and foster a collaborative team effort. Employees need to understand the HRM systems that pertain and are available to them. The communication of HRM systems is imperative, and the company will ensure clear understanding by the management team. Senior leadership and management at Riordan Manufacturing have the right to make a profit, stay in business, grow, earn a return on investment, and good employee performance. Senior managers need to develop the skills required to be effective career developers because employers have a stake in helping employees develop from a career and personal perspective to acquire job-related knowledge, skills, and abilities. ”This includes the ability to help subordinates make informed estimates of their strengths, weaknesses, and career aspirations” (Dreher & Dougherty, 2001). At Riordan Manufacturing the leadership and management value employees and are interested in addressing declining loyalty and motivation. Management opinions regarding the causes of employee behavior conflict with each other but the proper way to address these problems vary considerably across the organization. The senior leadership must use interpersonal intelligence to manage effective company change and minimize employee retention problems.” This entails understanding employee behavior, the motives and causes that underline the behavior, noting behavioral trends, and using this information to predict the outcome of other critical situations in the future (Dreher & Dougherty, 2001, p. 17). Riordan Manufacturing values innovation, employee loyalty, customer retention, and growth. To accomplish its goals Riordan needs to avoid ethical dilemmas by providing the organization with the tools and information it needs to reach organizational and personal goals, provide a reasonable compensation package, and give the organizational members clear understanding of the HRM systems and its alignment with the organization’s goals. Management must be considerate of varying employee perceptions and needs and strive to create a work environment in which employees can be confident that their behaviors and efforts will result in positively valued outcomes and achievement. “They have a responsibility for creating trust and cultivating cultural values” (Lassiter, 2004). Setting up a succession plan at Riordan Manufacturing can improve employee’s perception of their value to the company. If all employees feel they have the opportunity to move upward, provided they put the effort and show promise, performance can improve. Identifying and keeping such talent helps ensure Riordan Manufacturing’s success in the future as well. “Succession planning includes identifying all employees with promise in becoming effective and successful leaders and providing them with the tools and mentorship to get them there (Dreher & Dougherty, 2001). The assistance of Human Capital Consulting has been requested because senior leadership believes that company issues have little to do with compensation and are interested in improving job design to make jobs more fulfilling. Human Capital Consulting will work on providing effective coaching with consistent feedback, developing opportunities, and consistencies across functions to reduce employee confusion and employee dissatisfaction. To determine the correct compensation level for the new team-based selling process will also become a priority. Examining the different methods for pay includes reviewing methods such as, “equity theory, pay at risk, Performance-Contingent Pay, Internal versus External Job Pricing, Skill-Based Pay, Seniority Systems Flexibility, and Benefit Level (Dreher & Dougherty, 2001). End-State Vision Riordan Manufacturing will become an industry leader by restructuring its business model to a CRM system with team-based sales and support structure, adjusting its Human Resources Department management strategies, developing a collaborative and committed team environment, and employing effective leadership to ensure continued success. Gap Analysis For Riordan Manufacturing to improve its employee morale and turnover rate, increase motivation and become successful with its new CRM system it will have to close the gap between its current practices and its end-state vision. Riordan will have to increase morale and motivation, create an adequate reward structure, raise retention rates, provide opportunities for training and development, and align leadership perspective with the end-state vision. Riordan Manufacturing Human Resources system must effectively support employee opportunity and commitment. Manny practices will have to be restructured, beginning with improvements to the employee development and career advancement systems. ”Internal sources of recruitment and promotion offer the company applicants who are well known to the organization (Noe, Hollenbeck, Gerhart & Wright, 2004, p. 154). Senior leadership at Riordan Manufacturing must evaluate and correct deficiencies in its performance evaluations, recognition programs, and monetary compensation including pay scales. ”Job evaluation assesses both the content and the value of the job. Job content refers to the type of work performed and the skills and knowledge necessary to perform the work. Work value refers to the job’s degree of contribution in meeting your organization’s goals and the degree of difficulty in filling the job” (David Dev, 2011). Riordan Manufacturing must be mindful of employee perceptions to improve motivation and drive. To improve motivation and drive company leaders can refer to expectancy theories of motivation. Motivation can be improved by tying employee performance and value rewards. Management can clarify help by clarifying performance standards, establishing accurate performance ratings, use performance ratings to differentially allocate intrinsic and extrinsic rewards, and reward and recognize individual and team contributions accordingly. ”Pay relationship affects employee motivation, decisions to stay with the organization, become flexible by investing in additional training and to seek greater responsibility. Furthermore, pay relationship indirectly affect the capabilities of the work force and hence the efficiency of the organization” (Milkovich & Newman, 2005, p. 17). Education, training, succession planning, and involvement of key employees would encourage long-term commitment by Riordan Man factoring employees. Education can also serve as an opportunity to develop strong and effective leaders from within the company, whose leadership and goals are aligned with the company’s objectives. Conclusion Riordan Manufacturing is currently operating in a new market in which consumers have also changed and have required the company to retool their strategy and sales system. To achieve its vision of becoming a leader in their industry Riordan Manufacturing has decided to reevaluate its strategies and restructure its business model. If effectively implemented the new strategy offers a huge potential for growth and improvement. To ensure successful organizational transformation and achieve the attainment of the company’s end state goals, human resources management practices must be aligned with the company’s vision and employee concerns must be addressed. By promoting an understanding of and a commitment to the company vision and goals, developing and strengthening employee knowledge and skills, providing employees with the necessary information to carry out their jobs, and building employee confidence and trust in management, job satisfaction and team collaboration can be greatly enhanced. Management has to implement a total rewards package that includes compensation, benefits, work-life balance, performance and recognition, and career development opportunities. As a result management and employees will maintain a higher level of motivation to build necessary customer relationships, facilitate company growth, and realize success by becoming a leader in the plastic manufacturing industry. References Dev, D. (2011, April 22). Importance of Job Evaluation for Job Seekers and Employers. Retrieved from http://EnzineArticles.com/2828151 Dreher, T., & Dougherty, G. (2002). Human Resource Strategy;A Behavioral Perspective for the General Mananager. New York, NY: McGraw-Hill Companies. Kinicki, A., & Kreitner, R. (2004). Organizational Behavior (6th ed.). New York, NY: McGraw-Hill Companies. Lassiter, D. (2011, April 20). Facing Moral and Ethical Dlimmas. Retrieved from http://www.exe-coach.com/moralAndEthicalDilemmas.html Milkovich, G., & Newman, J. (2005). Compensation (8th ed.). New York, NY: McGraw-Hill Companies. Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2004). Fundamentals of Human Resource Management. New York, NY: McGraw-Hill Companies. Ulrich, D., & Brockbank, W. (2011, April 21). The Work of HR: The Flow of People and Flow of Performance Management. Retrieved from http://www.workinfo.com/free/Downloads/Flow_Ulrich_Brockbank.pdf Table 1 Issue and Opportunity Identification |Issue |Opportunity |Reference to Specific |Concept | | | |Course Concept | | | | |(Include citation) | | |Riordan Manufactoring has recently made a strategic change|Succession planning, |“Succession planning, skills |Career systems and | |to customer relations management system (CRM) with |skill inventory, job |inventories, job rotation, and |equal opportunities | |team-based sales and support structure These changes are |rotation, and assessment|the use of managerial | | |already negatively impacting employee satisfaction and |centers are all |assessment centers illustrate | | |retention. Turnover is up by 50% with the highest increase|motivational and provide|components of HR systems that | | |75% at head quarters and employee complaints are up 33% |employees with |can provide opportunities to | | |quarter to quarter. |opportunities to move |all employees” (Dreher & | | | |within the company, as |Drougherty,2002, p. 33) | | | |well as provide | | | | |management with insight | | | | |to individual’s talents | | | | |and potential. | | | | | | | | | | | | | |Some of the issues and challenges include declining | Performance evaluations|‘Confidence-boosting activities|Expectancy and equity| |retention rates, decrease morale and motivation, few |and recognition provides|such as providing coaching for |theory | |opportunities for training development, inadequate reward |employees with timely |performance could all enhance | | |structures, and company leader’s disagreement on primary |feedback to ensure they |employee expectancies for high | | |issues. |have the time and |performance” (Dougherty & | | | |ability to correct |Dreher, 2002, p. 37) | | | |deficiencies and improve|‘ managers must strive not to | | | |before yearly |provide all employees with the | | | |appraisals. The program |same level of rewards, but to | | | |should promote |create a culture of | | | |procedural and |consistency” (Dougherty & | | | |distributive justice. |Dreher, 2002, p.43) | | |Compensation issues have become prevalent because of the |Management will work on |The different methods of pay | Individual and Group| |change to a team sales structure. The employees are |providing effective |include “ equity theory, pay at|incentives | |affected by inadequate reward structures because they are |coaching with consistent|risk, Performance-Contingent | | |set for individuals when they are now working as teams. |feedback, developing |Pay, Internal versus External | | |Employee could lead to declining loyalty and motivation. |opportunities, and |Job Pricing. Skill-Based Pay, | | | |consistencies across |Seniority Systems Flexibility, | | | |functions to reduce |and Benefit Level(Dreher & | | | |employee confusion and |Dougherty, 2001) | | | |dissatisfaction. A |“We can enhance employee | | | |priority will become |motivation for performance by | | | |determining the correct |fostering employee’s perception| | | |compensation level for |that there are strong | | | |the new team based |connections (instrumentalities)| | | |selling process. |between performance and the | | | | |receipt of valuable (highly | | | | |valent) outcomes” ( Dreher & | | | | |Dougherty, 2002, p.43) | | Table 2 Stakeholder Perspectives |Stakeholder Perspectives | | | | |Stakeholder Groups |The Interests, Rights, and | | |Values of Each Group | | Michael Riordan and shareholders | Interests- To maintain revenue and profit, company growth and image, | | |personal income. | | |Right- to expect a return on investment and good employee performance. | | |Values- Decision making and employee loyalty. | | Employees |Interests-To receive wages and benefits for performing duties and develop | | |through education, training, and career growth. | | |Rights- To be treated fairly, recognized for skills and contributions made| | |to the success of the organization. | | |.Values- Timely feedback, rewards, and recognition. | |Customers |Interests- Receiving quality products and reasonable prices | | |Rights- To receive consultation and profuct package recommendations | | |designed uniquely for their needs | | |Values- Innovative products, educated product suggestions, and design | | |input individual service | Table 3 End State Goals |End-State Goals | |Establish CRM system and restructure the business model to become industry leader. | | Adjust human resource department management strategies, developing a collaborative and committed team environment, and employing effective | |leadership to ensure continued success. | |Reduce employee turnover and increase employee motivation. | | Develop new incentive programs in line with new CRM system. | |Redesign job descriptions and provide new strategic employee performance feedback quarterly. | ----------------------- Instructions for Completing Table 1: Begin by creating a list of the motivation and rewards concepts from your assigned text, articles, or other sources. Think about how each concept could have an impact on the current and future performance of Riordan Manufacturing. In the context of the scenario, determine how the concept reflects an issue. Place the issue, and corresponding opportunity, in the table accordingly in columns 1 and 2. In column 3, identify the concept underlying the issue. Finally, in column 4, provide a specific citation referencing the concept. See Table 1 for an example from the USAuto scenario. Delete this box of instructions before submitting your final paper. Instructions for Completing Table 2: In this table, you will identify the key stakeholders in the Riordan Manufacturing scenario. Conflicts can occur when one stakeholder or group of stakeholders has interests, rights, or values that are at odds with another stakeholder, or group of stakeholders’ interests, rights, or values. Most situations have at least the potential for conflict. It is important to identify these potential conflicts, paying particular attention to ethical dilemmas. Remember that ethical dilemmas come from competing values, both of which are fair and reasonable. There are a number of values to consider that are at the heart of an ethical dilemma in a business setting. Some of these are accountability, fairness, respect, social responsibility, integrity, and honesty. In column 1, Stakeholder Groups, list the stakeholders found in the Riordan Manufacturing scenario. In column 2, The Interests, Rights, and Values of Each Group, identify to the reader the different interests, rights, or values of each group. Delete this box of instructions before submitting your final paper.