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Gap Analysis: Riordan Manufacturing

Introduction
Riordan Manufacturing is a global plastics producer tat employs 550 people with projected annual earnings of $46 million. Riordan Manufacturing, Inc. is an industry leader in the field of plastic injection molding. Extreme precision and enthusiastic quality control are the hallmarks of Riordan Manufacturing. Riordan’s facilities are in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China. Riordan Manufacturing is wholly owned by Riordan Industries, a Fortune 1000 enterprise. Due to declining sales and uneven profits over the past two years, Riordan have made strategic changes in the way it manufactures and markets its products. Also, the company has adopted a customer-relationship management (CRM).
Situation Analysis
Issue and Opportunity Identification
Riordan conducted a recent annual survey that exposed a decrease overall job satisfaction, particularly in the areas of compensation and benefits. “The ultimate success of a company’s pay structure depends on how well the structure supports key employee behaviors and, possibly most important, the level of employee acceptance of the pay structure. The level of employee acceptance is critical for maintaining the firm’s ability to attract and retain valuable employees” (Dougherty, 2001. p. 88). Riordan has also outsourced some of the work to the new manufacturing facility in China. As the changes have been implemented, employee retention numbers have declined.
Job satisfaction is an important, readily available measure of the worker’s utility derived
from the job It allows the identification of those characteristics which have a differential impact

on the worker’s utility. The recruitment and retention of qualified, skilled employees is the

foundation of any business, small or large.

There is an opportunity for Riordan and senior management to motivate their employees to be involved in the decision-making process and setup a program that recognizes their skills...