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Problem Solution Riordan Manufactuing

Running head: PROBLEM SOLUTION: RIORDAN MANUFACTURING

Problem Solution: Riordan Manufacturing
Paul Robey
University of Phoenix


Problem Solution: Riordan Manufacturing
Riordan Manufacturing is a global plastics producer that over the last two years has experienced a decline in sales and profits. The company most recently has made several strategic changes, one being in sales adopting the CRM system (customer-relationship management), the customer is now being served by a team that formed by each major segment of the company, and the hope is that sales will improve with better customer service. In the area of manufacturing, the company has implemented a Six Sigma quality approach and the plants have been reorganized into self-directed work teams. Riordan is searching for answers; this paper will examine the issues and recommend a solution so the company can concentrate on what is does best, building plastic products.

Describe the Situation
Issue and Opportunity Identification
This company has some serious problems that need to be addressed, sales have been declining over the past two years and profits have been uneven, the company is divided among age groups and has different perspectives on how the company should be managed. Performance data indicates that only a quarter of the employees are high-achievers, most employees appear to fall into the mid-tier range. The reward system is out-dated and needs to be revamped causing morale and work ethic issues. The HR department reports through Finance and the Director has no real power or respect. The CEO realizes that something has to be done and is now in the midst of addressing the major issues and has hired a consultant to help identify the major issues.

Stakeholder Perspectives/Ethical Dilemmas
The stakeholders regarding Riordan are the employees, customers, management team and the consulting firm that has been retained to review the current compensation system.
The HR department reports...