Essay on Problem Definition: Riordan Manufacturing

3904 Words Mar 30th, 2008 16 Pages
Running head: Problem Definition: RIORDAN MANUFACTURING

Problem Definition: Riordan Manufacturing
University of Phoenix
Human Capital Development
MBA 530
Dr. Alvin H. Steward III
January 23, 2008

Problem Definition: Riordan Manufacturing
Riordan Manufacturing is faced with an interesting but not uncommon occurrence among larger businesses. Riordan is faced with a motivation and production problem in a growing, global organization. Employee motivation is an issue that does not discriminate as Organizations of all sizes wrestle with it. This is particularly true in manufacturing companies with a broad range of employees with myriad motivational needs. Usually, these workers represent multiple educational
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“The pay system can be a powerful mechanism for encouraging and supporting a variety of alternative employee behaviors, such as individual goal achievement, or teamwork, cooperation, and quality improvement” (Dreher & Dougherty, 2008, p 7). Faced with declining morale and work ethic, Riordan managers have been pressuring the CEO to do something about the rewards system. The implementation of these changes has negatively affected the employee morale and employee retention numbers are down. Sales management wants an improved commission structure that recognizes the new teamwork philosophy, while salespeople fear their bonuses could be at risk if they depend on team, and not individual, performance. Other managers are concerned that with or without incentives, their employee base salaries are too low to retain good people and are urging the CEO to increase pay levels. Engineering and IT managers are particularly concerned that several employees with proprietary information may leave the organization for greener pastures. Research and Development says that their employees who work on long-term projects would be best served by incentives that reward continued focus. They also want their contributions to the sales process to

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