Riordan case study

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Riordan Problem Solution If I just made more money… We often hear this comment when employees are dissatisfied in their workplace. Not enough growth opportunities and insurance cost are sure to follow those remarks. Companies need to be aware of these worries before they become the reason for employee strikes or leaving for other jobs. Riordan is among the many companies facing the prospects of declining sales and unhappy employees.Companies continue to make better products that the customer will see as an added benefit to their own organization… Benefit? There is the key. Benefits are what we are looking for, insurance, vacations and education. If we are not paying for something out of our pocket then we are happy. These perks may not be free to us but we are not placing the money on the table to receive them.Situation Background (Step 1)Riordan is a Fortune 1000 global plastics manufacturer. Riordan's project earnings for the year of $46 million provide employment for 550 people. They conduct business with the Department of Defense, beverage makers and bottlers, automotive parts manufacturers, aircraft manufacturers and appliance manufacturers. Because of declining sales, Riordan has adopted a customer-relationship management (CRM) system. This system gives customers access to a sales team as opposed to a single sales person. Teams are constructed of a sales person, product engineering specialist, and a customer service rep. This system was designed and implemented to improve sales and better support the customer. Riordan's employee retention rate has declined since the CRM system was put into place. A recent employee survey showed a decrease in job satisfaction. The major areas of concern are pay and benefits. The key leadership does not agree on the underlying cause of the decline in job satisfaction. They also do not see eye to eye on how to correct the problems. Because of these internal management issues, Riordan has hired an outside agency, Human Capital Consulting, to assess the problem and recommend possible solutions. This allows the CEO to receive an unbiased report on the human resource (HR) problems affecting his organization.The HR issues plaguing Riordan are very diverse. Riordan employs personnel of all ages. Baby boomers make up the bulk of the management team. Most of the professional staff is GenXers. GenY employees are primarily found in the engineering and information technology (IT) departments. The motivation that drives Riordan's employees is radically different. Some employees are motivated by pay increases, while others want a more interesting job. The current reward system is based more on seniority than performance. Human Capital Consulting found the following issues with...

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