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Riordan:Gap Analysis

Running head: GAP ANALYSIS: RIORDAN MANUFACTURING

Gap Analysis: Riordan Manufacturing

Gap Analysis: Riordan Manufacturing
Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. Production is divided among two domestic manufacturing plants and one overseas; Research and Development is conducted at corporate headquarters in San Jose, California. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers.
In the last two years, Riordan has seen declining sales and uneven profits that has forced the company to make several strategic changes in the way it manufactures and markets its products and the company has developed a customer-relationship management (CRM) system. Hoping that the team approach will improves sales; customers are now serviced primarily by sales teams rather than single salespeople, with each team focusing on a particular customer segment. Teams include a sales person, product engineering specialist and customer service representatives and three groups have completely different perspectives on rewards and motivation and the company’s current reward system is based on cost-of-living increases, seniority and position. Faced with employee turnover, declining morale and work ethic, Riordan managers have been pressuring the CEO to "do something" about the rewards system. “Employees are more likely to accept and support organizational change when they believe it is implemented fairly and when it produces equitable outcomes” (Kreitner & Kinicki, 2004, p. 297).
This report will identify the gaps between the current situation of the company and the end-state visions. The conclusion presents a summary of the knowledge gained while developing a problem solution for Riordan Manufacturing.
Situation Analysis
Issue and Opportunity Identification
For the...