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Mba 530 - Scenario Two Problem Solution Executive Briefing

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Scenario Two Problem Solution Executive Briefing


University of Phoenix

MBA 530

Human Capital Development

Gwen McCants-Allen

January 11, 2007

Scenario Two Problem Solution Executive Briefing

The legendary scientist, Albert Einstein once stated, "No problem can be solved from the same state of mind that created it..." This famous quote can definitely be applied to the topic of discussion today. The course study model, Riordan Manufacturing (a global plastic producer organization), provides an excellent opportunity to turn several difficult problems into an opportunity that will allow the Company to improve employee and customer relationships.

In this problem solution executive briefing, our team will present findings on the following: a) the situation at hand along with challenges and opportunities; b) the problem defined; c) the desired future state and goals to evaluate alternatives; d) potential solutions; e) an assessment of the alternative solutions; f) a complete risk assessment; g) the recommended solution and rationale behind decision; h) the expected impact and value; and i) a summary approach to implementing recommended solution along with ways to measure its effectiveness.

Situation Described

Riordan Manufacturing is a global plastic producer company employing 550 people among three plants, which are located in Albany, Georgia; Pontiac, Michigan,; and Hangzhou, China with projected annual earnings of $46 million. Recently, Riordan made several changes in the way they make and manufacture their products. The company also changed their sales processes and switched to a customer relationship management system. The new strategic model restructures the previous sales approach and these changes require customers to be serviced by teams rather than individual sales people. The required changes are presenting major issues for the transitioning design teams, which consist of three major demographic groups (Baby Boomers, Generation X'ers, and Generation Y'ers). Each group has totally different perspectives and values when it comes to rewards and motivation. Riordan's executive leadership team must find a way to bridge this gap.


The challenges within Riordan are not only unhappy employees, but also the lack of teamwork from the management staff. The managers have their own perspective on what they think or feel is most important. Some of the managers believe compensation is more important than the new sales strategies. Then there are other managers that feel there are no problems with compensation, and the real problem is leadership, employee development, and job redesign. Because of the inconsistencies within the senior leadership team Riordan faces many internal challenges. Analyzing the findings of the consulting firm and determining the best solution can resolve these challenges.


The company is currently faced with an opportunity to re-assess the compensation and benefit plan in order to provide its employees with incentives that match the change in the demands of the individual jobs within the industry. During the re-assessment process, Riordan Manufacturing will be able to determine the most appropriate strategic plan that would benefit both the company and the employees.

Riordan Manufacturing is also faced with an opportunity to re-evaluate the leadership's views on the employees' incentives plan, and how to address the challenges from a team based approach. Overall, Riordan Manufacturing is a successful company, but in order to maintain or advance in the industry the needs of its employees and individual leadership's agenda must be addressed with a new compensation and benefit plan or a revitalization of the current plan.

Problem Defined

Since the recent change at Riordan, the employee retention has declined. Employees were not receptive to the recent changes that Riordan implemented. (Dreher, Dougherty, 2001) Riordan decided to give all employees an annual survey. Based on the results of the survey, the

leadership team at Riordan discovered that employees are dissatisfied with their jobs, compensation, and benefits package that Riordan currently offers. Every employee, depending on the primary job function, has various perspectives on what is most important. The employee perspectives range from rewards, motivation, pay, job duties and responsibilities.

Now, the current reward system that Human Resources (HR) uses is based on performance. The reward system is not working due to competition, current labor market, or rewarding employees based on skills or competencies. As a result, the employee morale has declined, and employees are demonstrating a poor work ethic.

The exposed problem needs immediate attention from the senior leadership team at

Riordan. The CEO, Michael Riordan, realizes that something must be done so he has agreed to

hire an outside consulting firm to compile data and facts about the underlined problems at Riordan. The goal is to analyze the findings and make a decision on whether to completely restructure the rewards system, or determine if the company should implement new motivational strategies. It is imperative that managers provide vast and complete feedback to the consulting firm so that the best yet most efficient business decision can be made.

Riordan Manufacturing desires to use the feedback to evaluate the triggers for the decrease in employee morale, which would allow the company to begin addressing the struggle with retaining key employees. The company recognizes that a program designed to challenge its employees to excel in the job is a necessary component to evaluate in the current incentive plans and in possible plans in the future to motivate the employees. Riordan Manufacturing also acknowledges that if the key employees continue to be disenchanted with employment it would delay or eliminate the company's ability to advance in the industry.

Desired Future State

The desired future state of Riordan will be an integral part of the new corporate strategic plan, which externally envisions a refocused and concentrated team-based approach to achieving customer satisfaction and internally envisions the following:

* Improved



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