Riordan Manufacturing Problem Solution


Problem Solution: Riordan Manufacturing
University of Phoenix

Problem Solution: Riordan Manufacturing
Riordan Manufacturing, Inc. is a global plastic manufacturing corporation that has 550 employees with an annual income of $46 million (University of Phoenix, Intranet Simulation, 2008, par. 1). The corporation’s needs to maximize its profits and has decided to implement a customer-relationship management (CRM) system that is team based and produce new innovative products. Issued have developed with the new changes. Since opening the China factory, employees are leaving the company and the company has to resolve how to retain the specialize workforce. The annual employee survey showed that employees’ morale was low because of the present seniority-based compensation and benefits offered. Barbara Masterson of Human Capital Consultants was hired to assess whether a new compensation package should be constructed, which the review confirmed along with recommendations of a further assessment of the Human Resource Management (HRM). The issues can become opportunities for the company to restructure the hierarchy of HRM and audit its practices by using an outside consulting firm, and implement a total reward system that will motivate employees to higher performance to achieve the business strategy of Riordan.

Situation Analysis
Issue and Opportunity Identification
Riordan Manufacturing, Inc. (Riordan) has developed a new business strategy to maximize its profits. The company plans to introduce new products and implement a customer-relationship management (CRM) system that is team based to increase sales (University of Phoenix, Scenario, 2008, par 1-2). However, the employees do not want to lose their individual commission. The research and development team wants recognitions for sales and needs better incentives to continue to work and focus on long-term projects (University of Phoenix, Scenario, 2008, par. 2). The IT division wants competitive pay, at least an increase of 15% (University of Phoenix, Scenario, 2008, par. 6). There is the issue of retaining employees, especially since the opening of the China factory, and a need for an overall total reward system that will motivate and satisfy employee to meet the company’s goals (University of Phoenix, Scenario, 2008, par. 1).
Riordan has the opportunity to implement a total reward system (compensation and benefits) to motivate and create job satisfaction for the employees. A total reward system “embraces everything that employee’s value in the employment relationship” (Thompson, 2002, p. 1). Implementing a total reward system creates another issue. The human resource management needs to be aligned in the company’s hierarchy and align its practices to implement the total reward system. Riordan has the opportunity to remove the human resource unit from the Chief Financial Officer and develop a direct channel to the Chief Executive Office. This will give HRM the opportunity to become a competitive advantage to the company and eliminate distortions from the different divisions of upper management. HR has the opportunity to become aligned to implement the total rewards system by auditing and configuring the compensation process and communicating how the reward process will work to the employees.
Stakeholder Perspectives/Ethical Dilemmas
Riordan Manufacturing, Inc. (Riordan) has three key stakeholders involved in the company: upper management, human resources, and employees. The CEO and upper management are interested in the financial well-being of the company, employees’ performance, and employee retention to satisfy customers. The upper management has the right to make decisions that will maximize the company’s profits. The group’s values include personal gain, fairness, accountability, credibility, reputation, and employee equity. The ethical dilemma is the salaries of upper management versus workers have created a wide gap, which can affect employees’ motivation when the employees’ salaries and benefits are lower than desired.
The human resource management (HRM) has an interest in being able to implement the total reward system to motivate employees to meet Riordan’s objectives. HRM has the right to participate in decisions that affects its welfare. Values of HRM include credibility, reputation, accountability, recognition, and become a competitive advantage for the company. The ethical dilemma to face HRM is to create, execute and maintain a total reward system that is not unfair pay, but equitable for the employees.
The employees are the last stakeholders who have an interest in job satisfaction through a better compensation and benefits plan. The employees have a right to fair and equitable compensation packages that will motive them to perform in the specialized areas expected by the company. The employees have right to receive communication about the types of total rewards to be implemented by HRM and Riordan’s management. Employees value personal gain, honest, fairness, job satisfaction, better compensation, and recognition.

Problem Statement
Riordan Manufacturing, Inc. will enhance its customer service and development of new products by constructing a compensation package to motive employees, address the Human Resource hierarchical structure, and align HR practices to accommodate an equitable compensation system.

End-State Vision
Riordan Manufacturing, Inc. has accomplished its goals. The customer-relationship management (CRM) system has become a specialized team-based component of the company. The sales have increased and with new innovative products, profits have soared. Newspaper journal articles are constantly writing about the turn around of the company and how its growth has increased 5% within the annual year with sales that have tripled in a year. The success can be attributed to the employees being motivated with increased job satisfaction, which increased work performance. The Human Resource Management has a direct channel to the Chief Executive Officer’s office that has resulted in reduced interference. The Human Capital Consultant firm audited the human resource management’s practices and its recommendations aligned HR practices to execute the total reward system. The HRMs new and improved practices have lead to the unit become a competitive advantage to the company that is impenetrable.

Alternative Solutions
Riordan Manufacturing, Inc. (Riordan) wants to maximize its profits by using a new customer-relationship management (CRM) program and produce new innovative products. To accomplish its goals, the company has to address the employees’ low morale due to low compensation and benefits. For the Human Resource Management to develop and implement an enhance compensation package, the unit needs to be re-organized within the company and the HR practices aligned to accommodate a total reward system.
Human Resource Management’s Reorganization within Riordan’s Hierarchical Structure
Riordan’s Human Resource’s Director, Yvonne McMillan, has been “unable to secure … [for HR] a more active and strategic role in the organization” (University of Phoenix, Scenario, 2008, p. 4). The reason for HR’s inability to become a competitive advantage for Riordan has been hampered by misaligning the division to be under Finance and Accounting. The Chief Financial Officer, Dale Edgel, “oversees all HR activities at Riordan” (University of Phoenix, Scenario, 2008, p. 4). However, Dale’s involvement with HR has two critical impacts.
The first critical impact is the Chief Financial Officer does not allow the Human Resource Management to become involved in the business strategy of the company. According to Dreher and Dougherty, the HRM provides “information about contextual factors (e.g., the costs and quality associated with local labor markets) and about the organizational capability to implement a strategic plan, HRM informs the strategy formulation process” (Dreher & Dougherty, 2001, Chapter 8, p. 179). Currently, Riordan’s Human Resource Management is instructed to perform routine tasks, such as employee surveys. The second critical impact of the CFO’s supervising the Human Resource unit is the CFO has lacked address critical issues regarding the Finance and Accounting Division.
Riordan’s Capital Budget Executive Summary of 2005 reported the Financial and Account Division needs “a complete overhaul” (University of Phoenix, Intranet Simulation, 2008, p. 1). The Riordan’s financial and accounting division is the heart of the company and its Chief Financial Officer, Dale Edgel, needs to focus solely on resolving and maintaining this division. The Human Resource Management should have a direct channel to only the Chief Executive Officer’s Office. Reorganizing the company’s hierarchical structure enables the Human Resource Management to add value to the company by becoming a “competitive advantage in obtaining, developing and allocating human capital and knowledge assets” (Lawler, 2001, p. 5).
Riordan’s Human Resource Management, to become a competitive advantage and implement a total reward system, the unit must be audited.
Human Resource Management Audit
Riordan’s Human Resource should initially perform an assessment of its internal processes and systems before developing and implementing the employees total reward system.
The HR needs ensure compliance with state and federal laws governing HR practices, and the effectiveness of its practices when measured with Riordan’s corporate structure, culture and business strategy. According to Dreher and Dougherty, (2001), “Any audit is typically considered to the first step in the improvement of change effort … [to] improve the overall effectiveness of the HR function, a diagnosis of the present state must be conducted” (p. 176). Aligning the Human Resource unit will determine what type of work process is needed, reward system, training, and work design to create motivated and satisfied employees to meet the business strategy of Riordan.
The Human Resource Management (HRM) should consider hiring a consultant firm to perform the audit for an objective assessment of the unit. An example is an HR audit performed on Multnomah County.
Multnomah County provides public services to the County’s citizens (Flynn, 2004, October, par. 4). The HRM recruits and retain employees to provide these services. The audit revealed the HR was without a strategic direction toward the goals and objectives of the Country (Flynn, 2004, October, par. 10). The HR direction was not linked to the organization’s business strategy and had no long term objectives for structuring the workforce (Flynn, 2004, October, par. 10). The auditor objectively recommended development of a more comprehensive strategic plan, improved relations between HR and management, overhaul of HR’s performance management, classification, compensation, and performance measurement. (Flynn, 2004, October, par 10). Riordan should hire a consulting firm to audit its HRM. The consulting firm will be objective and experienced in assessing how to align the HRM to Riordan’s business strategy and develop a total reward system.
Motivating Employees: Developing a Total Reward System
Riordan’s employee survey revealed decrease retention of employees since the opening of the China factory and low employee morale and job dissatisfaction due to the current pay and benefits plan, and lack of challenging work, recognition, advancement, and career development. According to Dreher and Dougherty (2001), “Motivation is an employee’s willingness to exert effort toward a goal” (p. 1). To understand the needs of employees, Hertzberg’s motivation model explains two factors motivating employees: hygiene factors and satisfiers. Hygiene factors “…are related to basic living needs, security and fair treatment” (Milkovich & Newman, 2004, p. 262). The satisfiers are related to “recognition, promotion, and achievement, and motive performance” (Milkovich & Newman, 2004, p. 262). In other words, motivators (satisfiers) are the primary cause of satisfaction and hygiene factors are the primary cause of unhappiness in the workplace. Riordan’s management and Human Resource Management should seek to motivate employees by “giving opportunities for and celebrating achievement, and helping individuals enjoy and grown in their jobs” (Fowler, 2008, p. 2). However, the Expectancy Theory correlates employee motivation with organizational rewards.
According to Dreher and Dougherty (2001), “ … the expectancy theory directs us to determine employees’ current views or perceptions about the odds of achieving certain goals and relative preferences for different rewards of ‘outcomes’ in [the employees] … work” (p. 12). Expectancy reveals that employees have different perceptions and levels of self-esteem about what they are capable of doing (Dreher & Dougherty, 2001, Chapter 2, par. 12). To motivate employees’ expectancy, training, career development, coaching and other resources should be available to maximize effort. Instrumentality is a second component which explains employee’s perception of performance outcome, positive or negative, that link to their desires (Dreher & Dougherty, 2001, Chapter 2, par. 12). Employee desires could be in the form of monetary awards or relational return from work (non-monetary compensation).The last component is valence. Valence is the level of employees’ receiving what they desire. The three components of the expectancy theory, expectancy, instrumentality, and valence create motivation that results in job satisfaction and higher performance from employees. Overall, the expectancy theory states that an employee will act in a certain way based on the expectations that the act will be followed by a given outcome (reward) and on the attractiveness of that outcome to the employee. The theory links employee motivation to attractive rewards and Riordan’s employees differ in their desires so that the company would benefit in developing a total reward system.
Total Reward System
Riordan Manufacturing, Inc. (Riordan) is a large corporation with diversification in employee divisions, demographic groups, and performance. The corporation has specialized divisions such as Research and Development, IT, Sales and Manufacturing; demographic consisting of baby boomers, GenXers and newcomers GenY; and performance ratings of 25 percent high achievers, a vast mid-tier of performers and a minimum group of non-performance (University of Phoenix, Scenario, 2008, par. 2). To develop a fair and equitable compensation package, a total reward system would benefit such diversity in employees.
Total rewards are available in many forms that employees perceive to be of value from their employment relationship. Total rewards are “all of the tools available to the employer that may be used to attract, motivate, and retain employees” (World at Work, 2008, p. 1). According to Lawler and Worley, “a variety of rewards can create organizations that are built to change … bonuses, stock, and person-based pay, when designed properly, can help organizations be flexible and effective” (p. 11)
Bonuses, stock and person-based pay are rewards that do work. Riordan’s IT, to be competitive with other companies needs a 15 percent increase. The company would retain IT workers with a 20 percent increase and an incentive-variable pay for each project that may be linked to time spent on a project, peer ratings, or projects success for this form of pay-for-performance (Milkovich and Newman, 2004, par 279. According to Milkovich and Newman (2004), “Because incentives are one-time payments, they do not have a permanent effect on labor costs … performance declines, incentive pay automatically declines” (p. 9). A 20 percent increase in pay should include all employees, which will make the pay compensation fair and equitable to sustain the workforce and achieve a competitive advantage against competing companies. However, crucial divisions to the company’s sustenance should receive additional add-on monetary rewards.
The Sales and Research and Development Departments are crucial components to maximizing the company’s profits. Along with increased base pay, the sales department should receive individual commissions based on the team’s performance, but each individual is accountable for their portion of teamwork. This type of payment would decreased team slackers and achieve higher performance from the teams.
The Research and Development Division is the glue that ties the organization together. Without new innovative products, the company would become stagnant with no new growth and inhibited from opportunities to expand and prosper. This division should receive short term options to continue focus on the projects such as bonuses for achieving different phases within the project and lump sum bonuses for completion of the project. According to the Ivey Business Journal Online (2006, March), “Organizations that want to motivate performance and change with cash rewards must use bonuses … an increasingly popular form of variable pay [which] uses the results of a performance appraisal to determine the amount of bonus that is paid to an employee” (p. 11).
The Research and Development employees should also be given stock options. The stock option would place them as having ownership within the company and increases their commitment to producing viable products that will make profits for the company. The monetary awards are just a part of the total reward system for there are benefits and other non-monetary rewards Riordan and its Human Resource Management should include in total compensation package. Career development that includes opportunities for advance through training in specialized skills, succession programs mentoring toward leadership positions, and internal specialized training for new procedures, services or skills. According to Dreher and Dougherty (2001), “… training, education, and development have been about processes designed to help employees acquire knowledge, skills and other attributes needed to be effective in new and changing work settings” (p. 122).
The work design, challenging work, opportunity for personal growth, recognition of achievements, preferred office space, being involved in decisions that affect the way work is done, flexible working hours, daycare, elder care, paid sick time, annual leave or vacation and holidays are just some of many various relational return for work and work/life balance that are included in a total reward system (Thompson, 2002, par. 3). According to Thompson (2002), “The aim of a total reward system is to encourage more positive employee commitment without incurring open-ended operational costs” (p. 4). The diversity of Riordan’s employees would benefit in this type of compensation package which enhances motivation that will result in job satisfaction and increased work performance.
The total reward system should include benefits such as health insurance, retirement programs, life insurance and saving plans. However, the plan should consist of flexible compensation called the cafeteria-style compensation. The employees would have selective choices of rewards to pick from to accommodate needs (Milkovich and Newman, 2004, par. 261). After implementation of the system, the Human Resource Management needs to communicate to the employees how the total reward system works and the benefits derived for the individual. Communication should be used in a more direct channel like either personal meeting one-on-one or division meetings. Informed employees will have a better understanding of the fair and equitable system a total reward system.
Developing and installing a total reward system will be performed by the Human Resource Management. After implementation of the system, the Human Resource Management needs to communicate to the employees how the total reward system works and the benefits derived for the individual. Communication should be used in a more direct channel like either personal meeting one-on-one or division meetings. Informed employees will have a better understanding of the fair and equitable system a total reward system implements.

Analysis of Alternative Solutions
Riordan’s business strategy is to maximize its profits by successfully implement the customer-relationship management (CRM) system and producing new innovative products and implement a compensation package to motive the employees. The alternative solutions recommend are all primary and rate five out of five. The reason for such high ranking is because the Human Resource Management needs a direct channel to the Chief Executive Officer, eliminating suppression of HRM’s ability to link with Riordan’s business strategy and become an added value as a competitive advantage in allocating human resources toward the company’s goals.
The Human Resource Management audit ranks five because if should be the first step to assess whether its practices will accommodate the business strategy and implementation of the total reward system. However, the audit should be done by an outside consulting firm. The total reward system is ranked five because it is the primary motivating force to drive employees to job satisfaction and higher performance. In other words, the perception of employees needs correlate with better pay and benefits. Communication is rated five because the new total reward system should be clarified to all employees. Overall, all alternatives are rated five and are necessary to reach the company’s goals.

Risk Assessment and Mitigation Techniques
Riordan Manufacturing, Inc. (Riordan) should consider the alternatives that have been suggested. The risk assessment to restructure Human Resource Management to the Chief Executive’s office is low and has more positive impacts than risk such as monitoring the effectiveness of HRM’s policies, directives and procedures. However, HRM would be responsible for aligning with the company’s business strategy. A severe consequence to consider is if the Director of HRM does not meet the challenge. The alternative would be to outsource the HRM unit to a reputable, experience and professional firm.
A consulting firm auditing HRM’s risk is minimal because selection of an experienced firm creates more objectivity in assessing HRM’s practices than the unit would in a self analysis. Severe consequence could be the consulting firm does not see the Director as having the leadership ability needed or HR staff dissatisfaction. The company would have to decide to replace the director or outsource HR, and motivate the HR staff to perform needed tasks to align and achieve the company’s goals. The total reward system risk can be either low or high depending on Human Resource Management’s capabilities to develop and implement a fair and equitable compensation that complies with federal and state laws and regulations. However, the probability of implementing a successful total reward system is high. The consequences of its failure would be a severe setback for the company, and to mitigate the situation the company should hire an consultant firm to advise in a correct pay system. Overall, the alternative solutions should be minimal if implemented properly by the Human Resource Management.

Optimal Solution
Riordan Manufacturing, Inc. plans to maximize profits by implementing a new customer service model and innovative products can be achieved if several issues are resolved. The solution to increasing employees’ motivation can be enhanced by a complete compensation package called the total reward system. The objective of the company is to foster a greater customer focus and the key is to create a reward system moves toward new ways of getting work done, new skills, greater flexibility in work schedules, career development, base pay increase, cafeteria style benefits, and a multitude of choices that a company can pick and choose from that fits its organization (Workforce, 2008, par. 1-6). To implement a successful total reward system, Riordan’s Human Resource Management must be restructured and its practices aligned to accommodate the new compensation packages.
Riordan’s Human Resource Management (HRM) should have a direct channel to the CEO’s office instead of the Vice President of Finance and Accounting. The restructuring should be done within one month to relieve the CFO responsibility to HR to focus on the Financial and Accounting crisis. The CEO is the primary driver of corporate strategy and majority human resources function directly to the CEO. The direct channel will give HRM an opportunity to implement the employee total reward system that will establish a competitive advantage through four conditions: 1) the HRM will adds value to the firm through implementing a reward system that will select, develop and motivate employees; become a rare resource with specialized-skill workers to meet the demands of advance technology; become inimitable (can’t be imitated); and be nonsubstitutable (Dreher and Dougherty, 2001, Chapter 8, par. 169-170). The optimal solution will create Riordan’s effectiveness in building a highly involved work system that will have a positive impact on employee performance.
The HR alignment to accommodate the total reward system and the organization’s business strategy should be performed within two months. The initial audit will be conducted by an outside consulting firm, preferably Human Capital Consultant’s Barbara Masterson. The audit should help HRM to: identify its programs that are most important to achieving Riordan’s objectives; evaluate how well HR delivers those programs; benchmark HR work to ensure continuous performance; promote change and creativity; focus the HR staff on important issues; and bring HR closer to the line functions of the organization (Reliable Surveys, 2008, par. 1).
The total reward system should be implemented within four to five months. Employees will be motivated by the total reward plans available to them and the company could always add, but never take away additional benefits, pay structures or other non-monetary rewards. Last, but not least, the Human Resource Management must provide communication that clearly informs the employees about the total reward system and assist in aiding undecided employees about flexible benefits and other non-monetary rewards. The optimal solution will bring motivation by employee rewards that results in high performance and high performance means mores sales and higher profits.

Implementation Plan
Implementing the Human Resource Management (HRM) alignment with the Chief Executive Office should be done immediately within one month. Time is crucial for the Vice President of Finance and Accounting has serious issues that can lead to critical consequences to immediately address and the HRM has to organize prior to being audited. The HRM should have a consulting firm do an audit on its alignment with the organization’s business strategy and developing the total reward system within two months.
The total reward system can be created within four to five months, but some type of bonus for everyone should be given (5-10 percent of monthly or yearly salary) to inject sudden motivation and anticipation in what is in store for employees with the new total reward system. Once the total reward system has been developed by HRM with the CEO’s approval, and prior to paying employees, communicating to employees about the new pay system and other rewards should happen two weeks before issuance of the new total reward system.

Evaluation of Results
Riordan Manufacturing, Inc., (Riordan) has the opportunity to maximize profits by implementing a successful customer-relationship management (CRM) model and new innovative products. However, to succeed employee motivation must be developed through monetary, benefits and other non-monetary awards. This can be provided by using a total reward system. The system can be monitored by employee surveys, questionnaires, and work performance. The Human Resource Management will be accountable for developing and maintaining the new compensation package, but to do so it needs to be directly under the supervisor of the Chief Executive Officer. As far as monitor the HRM’s activities that should be aligning with the company’s business strategies, no one would be better to oversee the unit than the CEO. The alignment of HRM practices to accommodate the business strategy and total reward system should not be a self assessment, but an objective consulting firm. The audit would be conducted to review the entire HRM process and recommend improvements that would aid in establishing HRM to become a competitive advantage to Riordan Manufacturing, Inc.

Riordan Manufacturing, Inc. can become a leader in the plastic industry through creating a new customer service model, innovative products, and a superior workforce. The alternative solutions of restructuring the Human Resource Management (HRM) to direct supervision of the Chief Executive Officer, external consulting firm audit of its practices to accommodate the total reward system will motivate employees to higher performance and increase production and sales of the company’s products to achieve its business strategy.
The Human Resource Management restructuring to direct supervision under the CEO’s office will eliminate distortion from upper management and answer to the primary driver of the corporate visionary goals. Majority of HRMs apply this type of hierarchical form for HRMs drive business strategies (Lawler, 2001, par. 20). The auditing of HRM’s practices should be done by an outside consulting firm. Assessing itself would not lead to an objective view to stakeholders such as the CEO, upper management and employees. It would be like allowing a judge to use his discretion regarding disciplinary actions against a lawyer, for they both are lawyers. However, Barbara Masterson, Senior Consultant for Human Capital Consulting completed her review of Riordan and accomplished a great job within a reasonable time frame and at a reasonable price.
The consulting firm and Barbara would better at making improvements and recommendations because Barbara already has a feel about the company’s issues from her present review. Overall, Human Resource Management can do the job after its restructuring and audit. The Director has never had the opportunity to demonstrate HRMs capabilities. Although it appears doubtful that she has the capacity, give an individual who has determination a challenge, and the individual is motivated. HRM will succeed in meeting all criteria needed to become a competitive advantage in a competitive industry.


Dreher and Dougherty. (2001). Chapter 2: Some basic theory about ability, motivation, and
opportunity. In Dreher G. and Dougherty T.W. (Eds). Human Resources Strategy (1e).
(p. 1-24). New York: The McGraw-Hill Companies
Dreher and Dougherty. (2001). Chapter 6: Employee and career development systems.
In Dreher G. and Dougherty T.W. (Eds). Human Resources Strategy (1e). (p. 128-138).
New York: The McGraw-Hill Companies.
Dreher and Dougherty. (2001). Chapter 8: The link to business strategy and firm performance.
In Dreher G. and Dougherty T.W. (Eds). Human Resources Strategy (1e). (p. 165-182).
New York: The McGraw-Hill Companies.
Flynn, S. (2004, October). Human resource audit … The audit of the Multnomah County
Human Resources. Retrieved February 9, 2008 from .
Fowler, K. (2008). Myths dispelled: What really motivates people? Retrieved March 2,
2008 from
Ivey Business Journal Online (2006, March). Winning support for organizational change:
designing employee reward systems that keep on working. Retrieved March 1, 2008 from
University of Phoenix, RDS Suite database.
Lawler, E. (2001). Linking business strategy and human resource management. Retrieved
March 3, 2008 from
Milkovich, G. and Newman, J. (2004). Chapter 1: The pay model. In Milkovich, G. and
Newman, J. (Eds.). Compensation. (p. 1-26). New York: McGraw-Hill Companies.
Milkovich, G. and Newman, J. (2004). Chapter 9: Pay for performance: The evidence.
In Milkovich, G. and Newman, J (Eds). Compensation. New York: McGraw-Hill
Reliable Surveys (2008). Auditing human resources. Retrieved March 2, 2008 from
Thompson, P. (2002) Total reward. Executive briefing. London: Chartered Institute of
Personnel and Development. Summary available at:
University of Phoenix. (2008). Riordan Scenario. Retrieved on March 1, 2008 from
University of Phoenix e-Resource.
University of Phoenix. (2008). Riordan Intranet Simulation. Retrieved on March 1, 2008
From the University of Phoenix e-Resource.

Table 1
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
Course Concept
(Include citation) Concept

Riordan human resource needs to focus on motivating employees. Riordan human resource has the opportunity to assess employees’ perception about outcomes desired from work performance.
“Motivation is employee’s willingness to exert effort toward a goal” (Dreher & Dougherty, 2001, p. 1). Motivation
Riordan’s human resource unit has to align its practices to motivate employees to obtain higher performance. Using motivation theories such as Hertzberg’s theory of motivation will provide a better understanding of what produces low morale and job dissatisfaction. The human resource unit has the opportunity to use this motivation model to aid in understanding what causes lack of motivation The Herzberg’s theory explains two factors motivating employees: hygiene factors and satisfiers. Hygiene factors “…are related to basic living needs, security and fair treatment” (Milkovich & Newman, 2004, p. 262). The satisfiers are related to “recognition, promotion, and achievement, and motive performance” (Milkovich & Newman, 2004, p. 262). Hertzberg’s theory of motivation
Riordan’s human resource unit has to align its practices to motivate employees to obtain higher performance. For an in-depth view of components that effect employees’ motivation, HR should analyze the expectancy theory of motivation. HR will understand why better employee rewards correlate with motivation using the expectancy theory of motivation. “… the expectancy theory directs us to determine employees’ current views or perceptions about the odds of achieving certain goals and relative preferences for different rewards of ‘outcomes’ in [the employees] … work” (p. 12). Expectancy theory of motivation
Riordan employees are concerned about the inequity in pay and benefits for their work performance. Riordan’s human resource has the opportunity to establish a mixture of compensation and benefits that will retain and attract employees. Total rewards are “all the tools available to the employer that may be used to attract, motivate, and retain employees” (World at Work, 2008, p. 1) Total rewards
Many of the divisions within Riordan would benefit from compensation packages that include performance-contingent pay Human resource has the opportunity to mix compensation packages for each division that should include performance-contingency pay. Performance- contingency is pay that is “one of a variety of rewards that can be linked to performance” (Dreher and Dougherty, p. 12). Performance-contingency pay
Many of Riordan’s employees want more than just monetary rewards and seek relational returns for their work. Riordan’s human resource has the opportunity to identify which divisions need to have relational returns for their work as an add-on to the compensation package.
Relational returns for work are “… the variety of return people receive from work … [such as] learning opportunities, status, [and] challenging work” (Milkovich & Newman, 2004, p. 7).
Riordan’s human resource unit has to address the impact of the reward system on the organization’s performance by considering creation of a culture of consistency. HR has the opportunity to assess the impact of the reward system on the organization’s performance through culture consistency that will provide fairness in the structure of the reward system. “… [a] culture of consistency … [includes] HR policies, programs, rules, and rewards … that will produce employee perceptions of consistency and equity” (Dreher & Dougherty, 2001, p. 20). Culture of consistency

Table 2
Stakeholder Perspectives
Stakeholder Perspectives

Stakeholder Groups
The Interests, Rights, and
Values of Each Group

CEO and Upper Management Chief Executive Officer and Founder, Michael Riordan
Interests: Maximizing profit, credibility, leader in industry, increasing sales, personal investments, retiring
Rights: As the owner/founder of Riordan, Michael has the rights of making major decisions with 80% of the shares as his. Michael has the right to whatever choice he decides on employees’ compensation.
Values: personal gain, accountability, loyalty, respect, credibility,
The ethical dilemma is that Michael’s compensation is higher than the employees. This wide gap leads the ethical dilemma whether management’s welfare is more important than employees’ welfare.

Upper Management
Interest: Maximizing profit, increasing sales, employees’ being compensated, retaining employees,
Rights: Management has the right to make executive decisions about cost and the company’s business strategy for maximize profits.
Values: personal gain, accountability, employee equity, respect, fairness,
Ethical dilemmas is when upper management, especially sales, uses new techniques or methods to improve the division, but is based on managers welfare versus the employees welfare. An example is in the sales division. The VP will get double the amount of commission per orders with a specific dollar amount compared to the sales employees.

Human Resource Management Interest: To develop a total reward system that will motivate employees’ performance to meet the Riordan’s objectives.
Rights: Direct leadership to avoid distortion in strategic planning of the company regarding employees
Values: Credibility, reputation, accountability, recognition, competitive advantage for company
Employees Interest: job satisfaction, increased compensation and benefits, open communication, job security
Rights: Employees have the right to fair and equitable compensation that will motivate them to perform in the specialized areas expected by the company. The employees have a right to receive communication about the types of total rewards established by HR and Riordan’s management.
Values: personal gain, honesty, fairness, job satisfaction, better compensation and benefits, respect, integrity

Table 3

Analysis of Alternative Solutions
[Click twice on table to change, see instructions on next page. The alternatives and their ratings as well as the goals and their weightings shown below are for illustrative purposes, you should enter your own. Delete this paragraph when done.]

Table 4
Risk Assessment and Mitigation Techniques
Risk Assessment and Mitigation Techniques
Alternative Solution Risks and Probability Consequence and Severity Mitigation Techniques
HR Hierarchical alignment to CEO Office • Risk low
• Probability high
• • • Director of HRM does not meet the challenge
• Outsource the HRM

HR practices align to total reward system • Risk low
• Probability high• • The consulting firm will review HR practices objectively and professional make recommendations – however, the consultant does not see leadership qualities in the director
• Replace Director or Outsource HRM

Employee’s compensation packages • Risk low to high
• Probability high• • Depends on the success of HRM to develop, implement and maintain the total reward system`
• • • Back to the drawing board – configure new system, but with outside consultation
• •
Communicating to employees the total reward system •
• • •
• • •
• •

Table 5
Optimal Solution Implementation Plan
Deliverable Timeline Who is Responsible
Total reward system 4 -5 months HRM
HR hierarchical structure channeled to direct supervision of CEO Within 1 month CEO
HR alignment Within 2 months Outside consulting firm
Communicating new pay system and rewards 2 week before payment to employees HRM

Table 6
Evaluation of Results
End-State Goals Metrics Target
Installed customer-relationship management (CRM) system and new innovative products Newspaper and journal articles about how Riordan turned around to become a leader in the plastic industry Shareholders, customers, vendors, management and employees
Restructured HRM to direct supervision of CEO. Aligned HR practices to compensate total reward system and the organization’s business strategy Removed HRM from under CFO’s supervisor; Had outside consultant firm audit HR practices to accommodate total reward system and the organization’s business strategy Stakeholders, shareholders, customers, vendors and competitive companies
Implemented total reward system Employee surveys, questionnaires, interviews and workforce performance Employees
Communicate the distribution and procedure of the total reward system One-on-one individual meetings or division meetings Employees

You May Also Find These Documents Helpful

Allegory Of American Pie By Don Mc Lean

Ask anyone what was the defining moment in the rock history of the 1960s was and all you will get is a one word answer: Woodstock. The three day rock festival that defined an era was only one of many music festivals of the '60s. But Woodstock has come to symbolize, "an era of peaceful, free- loving, drug- taking hippie youth, carefree before harsher realities hit..." (Layman 40). The Woodstock festival ended a century filled with many metamorphoses of rock'n'roll, from the era of pop music to the rebirth of folk music to the invention of acid rock. But some cynics say that rock'n'roll died with the death of Buddy Holly before the 60s even began. One such person is Don McLean. The poet behind the haunting epic song about the death of 'danceable' music, McLean wrote the ever popular song, "American Pie" (appendix 1). The most important song in rock'n'roll history, "American Pie", is the song about the demise of rock'n'roll after Buddy Holly's death and the heathenism of rock that resulted. Although McLean himself won't reveal any symbolism in his songs, "American Pie" is one of the most analyzed pieces of literature in modern society. Although not all of its secrets have been revealed, many "scholars" of the sixties will agree that the mystery of this song is one of the reasons it has become so successful- everyone wants to know the meanings of its allegories. Proof of "American Pie's" truth lies in the allegory of the song. Many People enjoy the song but have no idea what it means- Who is the Jester? What is the levee? When the deeper story is found, the importance of the song is unearthed. "American Pie" is not only a song, it is an epic poem about the course of rock'n'roll...

Carl Orffs Philosophies In Music Education

While Carl Orff is a very seminal composer of the 20th century, his greatest success and influence has been in the field of Music Education. Born on July 10th in Munich, Germany in 1895, Orff refused to speak about his past almost as if he were ashamed of it. What we do know, however, is that Orff came from a Bavarian family who was very active in the German military. His father's regiment band would often play through some of the young Orff's first attempts at composing. Although Orff was adamant about the secrecy of his past, Moser's Musik Lexicon says that he studied in the Munich Academy of Music until 1914. Orff then served in the military in the first world war. After the war, he held various positions in the Mannheim and Darmstadt opera houses then returned home to Munich to further study music. In 1925, and for the rest of his life, Orff was the head of a department and co-founder of the Guenther School for gymnastics, music, and dance in Munich where he worked with musical beginners. This is where he developed his Music Education theories. In 1937, Orff's Carmina Burana premiered in Frankfurt, Germany. Needless to say, it was a great success. With the success of Carmina Burana, Orff orphaned all of his previous works except for Catulli Carmina and the En trata which were rewritten to be acceptable by Orff. One of Orff's most admired composers was Monteverdi. In fact, much of Orff's work was based on ancient material. Orff said: I am often asked why I nearly always select old material, fairy tales and legends for my stage works. I do not look upon them as old, but rather as valid material. The time element disappears, and only the spiritual power remains. My...

Johann Sebastian Bach Biography

Throughout the history of music, many great composers, theorists, and instrumentalists have left indelible marks and influences that people today look back on to admire and aspire to. No exception to this idiom is Johann Sebastian Bach, whose impact on music was unforgettable to say the least. People today look back to his writings and works to both learn and admire. He truly can be considered a music history great. Bach, who came from a family of over 53 musicians, was nothing short of a virtuosic instrumentalist as well as a masterful composer. Born in Eisenach, Germany, on March 21, 1685, he was the son of a masterful violinist, Johann Ambrosius Bach, who taught his son the basic skills for string playing. Along with this string playing, Bach began to play the organ which is the instrument he would later on be noted for in history. His instruction on the organ came from the player at Eisenach's most important church. He instructed the young boy rather rigorously until his skills surpassed anyone?s expectations for someone of such a young age. Bach suffered early trauma when his parents died in 1695. He went to go live with his older brother, Johann Christoph, who also was a professional organist at Ohrdruf. He continued his younger brother's education on that instrument, as well as introducing him to the harpsichord. The rigorous training on these instruments combined with Bach?s masterful skill paid off for him at an early age. After several years of studying with his older brother, he received a scholarship to study in Luneberg, Germany, which is located on the northern tip of the country. As a result, he left his brother?s tutelage and went to go and study there. The teenage years brought Bach to several parts of Germany where he...


Michelangelo was pessimistic in his poetry and an optimist in his artwork. Michelangelo?s artwork consisted of paintings and sculptures that showed humanity in it?s natural state. Michelangelo?s poetry was pessimistic in his response to Strazzi even though he was complementing him. Michelangelo?s sculpture brought out his optimism. Michelangelo was optimistic in completing The Tomb of Pope Julius II and persevered through it?s many revisions trying to complete his vision. Sculpture was Michelangelo?s main goal and the love of his life. Since his art portrayed both optimism and pessimism, Michelangelo was in touch with his positive and negative sides, showing that he had a great and stable personality. Michelangelo?s artwork consisted of paintings and sculptures that showed humanity in it?s natural state. Michelangelo Buonarroti was called to Rome in 1505 by Pope Julius II to create for him a monumental tomb. We have no clear sense of what the tomb was to look like, since over the years it went through at least five conceptual revisions. The tomb was to have three levels; the bottom level was to have sculpted figures representing Victory and bond slaves. The second level was to have statues of Moses and Saint Paul as well as symbolic figures of the active and contemplative life- representative of the human striving for, and reception of, knowledge. The third level, it is assumed, was to have an effigy of the deceased pope. The tomb of Pope Julius II was never finished. What was finished of the tomb represents a twenty-year span of frustrating delays and revised schemes. Michelangelo had hardly begun work on the pope?s tomb when Julius commanded him to fresco the ceiling of the Sistine Chapel to complete the work done in the previous century under Sixtus IV. The overall organization consists of four large triangles at...

Oscar Wilde

Oscar Fingal O'Flahertie Wills Wilde was born in Dublin Ireland on October 16, 1854. He is one of the most talented and most controversial writers of his time. He was well known for his wit, flamboyance, and creative genius and with his little dramatic training showing his natural talent for stage and theatre. He is termed a martyr by some and may be the first true self-publicist and was known for his style of dress and odd behavior. Wilde, 1882 His Father, William Wilde, was a highly accredited doctor and his mother, Jane Francesca Elgee, was a writer of revolutionary poems. Oscar had a brother William Charles Kingsbury along with his father's three illegitimate children, Henry, Emily, and Mary. His sister, Isola Emily Francesca died in 1867 at only ten years of age from a sudden fever, greatly affecting Oscar and his family. He kept a lock of her hair in an envelope and later wrote the poem 'Requiescat' in her memory. Oscar and his brother William both attended the Protora Royal School at Enniskillen. He had little in common with the other children. He disliked games and took more interest in flowers and sunsets. He was extremely passionate about anything that had to do with ancient Greece and with Classics. Wilde during school years In 1871, he was awarded a Royal School Scholarship to Trinity College in Dublin and received many awards and earned the highest honor the college offered to an undergraduate, the Foundation Scholarship. In 1874, he also won the College's Berkley Gold Medal for Greek and was awarded a Demyship to Magdalen College, Oxford. After graduating from Oxford, Oscar moved to London with his friend Frank Miles, a well-known portrait painter of the time. In 1878 his poem Ravenna was published, for which he won the...

The History Of Greek Theater

Theater and drama in Ancient Greece took form in about 5th century BCE, with the Sopocles, the great writer of tragedy. In his plays and those of the same genre, heroes and the ideals of life were depicted and glorified. It was believed that man should live for honor and fame, his action was courageous and glorious and his life would climax in a great and noble death. Originally, the hero's recognition was created by selfish behaviors and little thought of service to others. As the Greeks grew toward city-states and colonization, it became the destiny and ambition of the hero to gain honor by serving his city. The second major characteristic of the early Greek world was the supernatural. The two worlds were not separate, as the gods lived in the same world as the men, and they interfered in the men's lives as they chose to. It was the gods who sent suffering and evil to men. In the plays of Sophocles, the gods brought about the hero's downfall because of a tragic flaw in the character of the hero. In Greek tragedy, suffering brought knowledge of worldly matters and of the individual. Aristotle attempted to explain how an audience could observe tragic events and still have a pleasurable experience. Aristotle, by searching the works of writers of Greek tragedy, Aeschulus, Euripides and Sophocles (whose Oedipus Rex he considered the finest of all Greek tragedies), arrived at his definition of tragedy. This explanation has a profound influence for more than twenty centuries on those writing tragedies, most significantly Shakespeare. Aristotle's analysis of tragedy began with a description of the effect such a work had on the audience as a "catharsis" or purging of the emotions. He decided that catharsis was the purging of two specific emotions, pity and...

Scholarship Essay About Goals

Ever since I was a young kid I have always been interested with aircraft. I was so curious of how airplane's fly. I remember taking my toys apart to see how it works. As a kid I wanted to go to the airport to watch the airplanes land and fly and pondered how this happens. Other kids wanted to go to the amusement places. As I grew older I became more and more interested in aircraft and the technology behind it. I always involved myself with aviation early on. I read books and magazines on aviation, took museum tours, built model airplanes. When I was younger my father would take me to aircraft repair facilities where I would watch in great fascination. In my teens, went up to the military bases and befriended many soldiers involved with aircraft and asked them numerous questions. I got to meet many aeronautics engineers and borrowed their old textbooks and read them till the wee hours of the morning. As technology improved with information superhighway, I logged on the web. Stayed up for hours and hours searching through web pages and web pages of information about aircraft and technology. I started my elementary school in the Philippines, then we moved to U.S. and continued my high school education and graduated. Enrolled at the CCSF to pursue my college education and now I am in the 2nd year in CCSF taking aeronautics. My goal now is to obtain my AS degree from the City College of San Francisco (CCSF) so I can transfer to a University and get a Bachelors degree and to continue for my Masters degree in Aeronautics Engineering. I will strive hard to reach the peak level of my career which is a Professor and hopefully to be an aeronautic professor so...

Circus Circus Enterprises Case Studies

Executive Summary: Circus Circus Enterprises is a leader and will continue to be in the gaming industry. In recent years, they have seen a decline in profit and revenue; management tends to blame the decrease on continuing disruptions from remodeling, expansion, and increased competition. Consequently, Circus has reported decreases in its net income for 1997 and 1998 and management believes this trend will continue as competition heightens. Currently the company is involved in several joint ventures, its brand of casino entertainment has traditionally catered to the low rollers and family vacationers through its theme park. Circus should continue to expand its existing operations into new market segments. This shift will allow them to attract the up scale gambler. Overview Circus Circus Enterprises, Inc founded in 1974 is in the business of entertainment, with its core strength in casino gambling. The company?s asset base, operating cash flow, profit margin, multiple markets and customers, rank it as one of the gaming industry leaders. Partners William G. Bennett an aggressive cost cutter and William N. Pennington purchased Circus Circus in 1974 as a small and unprofitable casino. It went public in 1983, from 1993 to 1997; the average return on capital invested was 16.5%. Circus Circus operates several properties in Las Vegas, Reno, Laughlin, and one in Mississippi, as well as 50% ownership in three other casinos and a theme park. On January 31,1998 Circus reported net income of 89.9 million and revenues of 1.35 billion, this is a down from 100 million on 1.3 billion in 1997. Management sees this decline in revenue due to the rapid and extensive expansion and the increased competition that Circus is facing. Well established in the casino gaming industry the corporation has its focus in the entertainment business and has particularly a popular theme resort concept....

Effect Of Civil War On American Economy

The Economies of the North and South, 1861-1865 In 1861, a great war in American history began. It was a civil war between the north and south that was by no means civil. This war would have great repercussions upon the economy of this country and the states within it. The American Civil War began with secession, creating a divided union of sorts, and sparked an incredibly cataclysmic four years. Although the actual war began with secession, this was not the only driving force. The economy of the Southern states, the Confederacy, greatly if not entirely depended on the institution of slavery. The Confederacy was heavily reliant on agriculture, and they used the profits made from the sale of such raw materials to purchase finished goods to use and enjoy. Their major export was cotton, which thrived on the warm river deltas and could easily be shipped to major ocean ports from towns on the Mississippi and numerous river cities. Slavery was a key part of this, as slaves were the ones who harvested and planted the cotton. Being such an enormous unpaid work force, the profits made were extraordinarily high and the price for the unfinished goods drastically low in comparison; especially since he invention of the cotton gin in 1793 which made the work all that much easier and quicker. In contrast, the economical structure of the Northern states, the Union, was vastly dependent on industry. Slavery did not exist in most of the Union, as there was no demand for it due to the type of industrial development taking place. As the Union had a paid work force, the profits made were lower and the cost of the finished manufactured item higher. In turn, the Union used the profits and purchased raw materials to use. This cycle...

Evaluation Of The Effectiveness Of Trade Embargoes

Although I am a strong critic of the use and effectiveness of economic sanctions, such as trade embargoes, for the sake of this assignment, I will present both their theoretical advantages and their disadvantages based upon my research. Trade embargoes and blockades have traditionally been used to entice nations to alter their behavior or to punish them for certain behavior. The intentions behind these policies are generally noble, at least on the surface. However, these policies can have side effects. For example, FDR's blockade of raw materials against the Japanese in Manchuria in the 1930s arguably led to the bombing of Pearl Harbor, which resulted in U.S. involvement in World War II. The decades-long embargo against Cuba not only did not lead to the topple of the communist regime there, but may have strengthened Castro's hold on the island and has created animosity toward the United States in Latin America and much suffering by the people of Cuba. Various studies have concluded that embargoes and other economic sanctions generally have not been effective from a utilitarian or policy perspective, yet these policies continue. Evaluation of the effectiveness of Trade Embargoes Strengths Trade embargoes and other sanctions can give the sender government the appearance of taking strong measures in response to a given situation without resorting to violence. Sanctions can be imposed in conjunction with other measures to achieve conflict prevention and mitigation goals. Sanctions may be ineffective: goals may be too elusive, the means too gentle, or cooperation from other countries insufficient. It is usually difficult to determine whether embargoes were an effective deterrent against future misdeeds: embargoes may contribute to a successful outcome, but can rarely achieve ambitious objectives alone. Some regimes are highly resistant to external pressures to reform. At the same time, trade sanctions may narrow the...