Problem Solution: Riordan Manufacturing

Riordan Manufacturing
This paper takes a good look at the situation, opportunities and challenging issues that are facing Riordan Manufacturing Company. Through analyzing the situations, opportunities, and challenges the true problem with Riordan 's human capital is realized. The end-state goals will direct Riordan Manufacturing to improve human resource practices, which will give Riordan a sustained competitive advantage (Dreher & Dougherty, 2001).
Situation Background
Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Production is divided among three plants: plastic beverage containers in Albany, Georgia; custom plastic parts in Pontiac, Michigan; and plastic fan parts in Hangzhou, China. 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 (Scenario: Riordan manufacturing, 2006).
Recently, Riordan made several strategic changes in the way it manufactures and markets its products. Declining sales and uneven profits over the past two years not only forced the company to change its sales approach but also prompted them to adopt a customer-relationship management (CRM) system. Sales teams rather than single salespeople now service customers with each team focusing on a particular customer segment. Teams typically include a sales person, product engineering specialist and customer service rep. The plan is that the team approach will improve sales (Scenario, 2006).
Riordan Manufacturing has seen a consistent drop in employee satisfaction over the last 12 months and the increase of voluntary separations has doubled in the past year in every department. These numbers are

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