RiordanManufacturing: Analysis of Organizational Issues and Values
RiordanManufacturing: Analysis of Organizational Issues and Values
Thecompany majorly projects a general conflict between employees` valuesand those of the organization, spearheaded by the lack of goodleadership in the organization and a non-dysfunctional human resourcesystem. To achieve an organizational change which evidently isurgently needed, the company needs to invest in redesigning its humanresource structure so as to achieve motivation to its employees` goodperformance, strategic decision making, change management and jobsatisfaction. There are various conflicts that can be observed inRiordan Company which include a low employee compensation andremuneration plan, lack of employee rewards, poor conflictresolution, lack of employee training, and involving employees indecision making within the organization among others.
Riordan`scompensation plan to its employees is below industry provisions, thusleading to decreased motivation and a below average performancealtogether. This information is recorded by an outside source, theHuman Capital Consulting firm. These low rates come in handy withless participation in teamwork, demonization and declining quality ofproducts. Employees, therefore, need to be provided with aremuneration system that seeks to fulfill their personal needs andalso those of the organization. Incentives offered to employeesaccording to the report are only available to senior management andsome department barely takes home any incentive. This further adds tothe problem of demonization leading to underperformance.
Amongthe stated organizational values, is the provision of trainingprograms for employees to ensure that they can meet organizationalgoals and a timed job rotation program that aimed at ensuringemployees try out their skills to where they can perform optimally.However, this is not the case as many employees’ abilities have notbeen exposed to training programs for enhancement so as to give thebest. This is evident in the dormant research and developmentdepartment and the information technology department which needsregular training so as to keep up with the emerging new markets andtechnological changes. As a company with many outlets, it is vitalthat an efficient career development process is to ensure quality andoptimal production.
Anotherconflict that can be deduced from the company is the elimination ofrecognition of good performance exhibited to employees regardingawards and prizes. Employees seem not to be satisfied with the rewardsystem as most of them expect to be handed tougher challenges in theway of promotion to enhance their growth and sense of responsibilityin the company. The company has failed to provide a work environmentthat gives room for the creative type of employees and anunimplemented job rotational plan. It can be deduced that the seniormanagement wants to maintain their positions while limiting costs,thus leading to conflicting values to those championed by the humanresource department which wants to focus significantly on careerdevelopment.
Forinstance, the recent cutbacks and layoffs did not involve allstakeholders, hence resulting in a different situation. Thesecutbacks are accorded to the human resource management offices as aresist of financial challenges cited by the administration.Therefore, they do conflict greatly with employees` rights,stakeholders` interests and customers` expectations. Employees intendto get a friendly work environment, food remuneration, careerdevelopment programs, whereas consumers are concerned with quality.CEOs are mostly focusing on returns that emanate from less spendingand high selling. Failure of involving this body in making strategicdecision raises the conflict of interest to all these organizationsas evident in Riordan virtual company.
Anothermatter that cannot go unnoticed is the conflict arising from reportsof undertaking layoffs to save money. This directly would create aperception to consumers that there must or will be a compromise toquality of products manufactured in the company. Apart from theconflict, trying to save money creates a dangerous perception thatthe company will cut spending on Research and development togetherwith health as this are extra spending incurred to ensure employees`goals and health are well met. The intent to save money will meanthat employees’ health may be at stake as spending on personalprotective and good quality material needed for manufacturing mayalso be compromised. This raises a conflict of interest between thecompany’s management, consumers, and its employees.
Perceptions,individual differences attitudes, or unethical organizationaldecision-making can be potential threats to this organization. Asnoted above, already the perception that employees are underpaidwould make performance go down. The working environment would becategorized with less teamwork, demonization and underperformance asmany at times employees are well motivated especially when theirphysiological needs are well met as according to Maslow’s hierarchyof needs. Employees` attitudes towards management will gradually grownegatively as they will perceive management as a group after theirinterest. The company may suffer losses of urgency problem in thiscase because stakeholders expect to have maximum returns yet thecompany is evidently assumed not to care due to the unprecedenteddecision to lay off workers and compromising of standards of quality.
Theeffect of individual differences can impact the employees’motivation, stewardship, and skill to the organization. The humanresource as an asset greatly contributes to the well-being of thecompany. Thus, the company needs to cover this gap of personaldifferences, treat each employee with good pay, provide training andmotivate them to achieve good productivity, effective communication,a good channel of conflict resolution and putting in place goodpractices of change management to enable employees to accept andmanage change.
Alarger potential threat is unethical decision making presented by thedecision of the company to lay off workers. The mandate of managinghuman resource lies in the office of human resources and cannotsolely be based on the financial need as the driving forces happenedin Riordan. Such a matter could undergo various alternatives that caninvolve all stakeholders before such a big decision is made. Thesurety of whether these layoffs would reduce the financial changes,or result in poor quality of service and goods has not been put intoconsideration so far
Communicationsreferencing unfair and inaccurate performance reviews have also beennoted and are a result of insufficient performance appraisal, lack ofemployee training and failure to offer job rotation which isindicated among the mandates expected of the human resource personnelat Riordan Company. The companies’ human resource management systemhas the challenge of presenting the correct facts on what is thecause of the demonization and underperformance. Failure to offertraining programs, motivational awards and involve employees in thedecision while referencing inaccurate performance reviews to variousemployees so as to lay them off is unethical and unacceptable.
AppendixI Revisions to Riordan`s formal code of business and ethics/employeeprocedures.
RiordanManufacturing has a new system in place that is expected tostreamline and contain communication and financial data. Financialreports are submitted to the system as soon as the month is over.
Employeesare subjected to a yearly performance evaluation accompanies by anincreased pay and an award to the outstanding employee of thefinancial year.
Employeeshave been provided with open communication thus, can freely share anyissues with supervisors.
Newemployees go through guidance and receive the companies’ handbook.
Employeessafety and health is highly encouraged
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