Riordan Manufacturing: A Case Study

Currently at Riordan Manufacturing there type of formal power structure is reward power. This means employees are motivated to perform on the basis of reward at the yearly performance evaluation. Other types of incentives offered for performance for being an outstanding employee, length of service and an employee suggestion program. (“Riordan Manufacturing”, 2013) Because of the reward system, the informal power structure is related to referent and expert power structure. The direct effect of power and political structure on the employees of Riordan Manufacturing comes down to one thing. That one thing is motivation. Without the reward system used and the performance evaluation system, the employees may not be as motivated.
The most appropriate
and effective type of structure for Riordan Manufacturing is the Matrix structure. This structure uses employees with similar skills to work together in teams which is the preferred type of departmentalization here at Riordan Manufacturing. This is the best way to utilize the strengths of each employee. By keeping like-minded employees in teams it will help us to all come together and move forward with the changes at hand. (Robbins & Judge, 2013)
Potential effects of this structure concerning employees can be both positive and negative. The positive aspect is to enable the departments to coordinate amongst each team. This way the information can reach everyone swiftly so the entire organization is on the same page. The negative impact could be possible power struggles and disagreements between team leads on who gets whom on their respective teams. One other negative aspect is that this could also possibly create a stress factor. (Robbins & Judge, 2013)
The main characteristics of the organizational culture here at Riordan Manufacturing are that the intention is to maintain an innovative and team oriented working environment. Riordan Manufacturing also chooses to be the solution and not the challenge for customers because long term relationships are important. These relationships will be built on concentration of quality control, innovative solutions and quick response to the customer along with competitive pricing. (“Riordan Manufacturing”, 2013) The influence of this culture on employees it that it promotes teamwork and rewards innovation which creates a win-win situation for both Riordan Manufacturing and the employees.

References
Riordan Manufacturing . (2013). Retrieved from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/index.asp
Robbins, S. P., & Judge, T. A. (2013). Organizational Behavior (15th ed.). Retrieved from The University of Phoenix eBook Collection.