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achieving management structure during globalization
The theory and practice of change management
The theory and practice of change management
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Problem Solution: Riordan Manufacturing
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.
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 processes, but also prompted them to adopt a customer-relationship management (CRM) system. Primarily 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 hope is that the team approach will improve sales. (Milkovich and Newman, 2004)
This paper introduces an overview of situational analysis, issues and opportunities and end-state vision of Riordan Manufacturing Company that is facing employees, lower job satisfaction and increased turnover. The current management team focuses on increasing employee motivation and rewards for encouraging workforce environmental performance. The organizational structure of Riordan needs to rapidly change the new strategy ...
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...ives. They can use other companies, similar to theirs, that have had to resolve the same issues. Riordan leaders will have to clearly communicate to their employees through a better form of communication, like a memo that their bonuses are not at risk. Perhaps their bonuses should be based on how they perform individually and within a team. Their decisions should involve all the appropriate stakeholders before committing to a decision. Instead of communicating through teams, the management team should meet on a weekly basis face to face. Riordan should implement the correct training and incentive plans to keep their employees. Most importantly, Riordan should understand the effectiveness of surveys and learn to act on any key findings. Finally, Riordan should send a letter to their employees announcing a new incentive plan for their existing and new employees.
Employee motivation and rewards are effective means to retain employees. When an employee is motivated, his or her needs are being met. When an employee is unmotivated, his or her needs are not being met which results in a high employee attrition rate. Riordan Manufacturing is experiencing a high attrition rate. Riordan Manufacturing has 3 plants and employs 550 people. Recently, Riordan hired Human Capital Consulting to perform an analysis on the underlying issues that are causing the decreasing employee satisfaction and to recommend courses of action that will address the underlying issues. Research has been done to identify the issues and opportunities, the stakeholders and ethical dilemmas, and the end state vision. A gap analysis has also been performed to determine the gap between the current situation and the end state goals. Riordan Manufacturing will use this information to determine the best way to proceed towards improving its working environment for the employees.
Riordan has identified criteria in four areas that define the company’s mission statement. First, the company focus is to have attitudes and abilities that exceed industry standards to provide solutions for customer’s challenges and lead the industry in Research and Development. Second, the mission for customer relationships is to be a solution for the customer, maintain quality, innovation, and customer service at a reasonable price. Third, to ensure the long-term viability of the company, the mission to the employees is to have an innovative and team oriented working environment, in addition to keeping the employees informed and supported. Lastly, the future of the company depends on maintaining profitability to allow growth in the company (Apollo Group, 2004).
As the salespeople’s immediate supervisor, it is the primary responsibility of the manager to provide proper training to enhance the salespersons’ effectiveness and improve their skills. Given the importance of having a productive and enthusiastic sales team, the manager needs to develop and manage effective reward and compensation packages to ensure a highly motivated and satisfied sales force. Sales managers also ensure that the company 's standards of professionalism, image, and branding are consistent with the sales team’s interaction with company customers. The manager 's presence also makes customers feel valued as well as provide credibility on behalf of the company (Pilling, Donthu, & Henson,
Firstly, there was compelling emphasis placed on exterior factors, for instance, Scanlon Bonus Plan, a motivator plan that inspires and drives employees’ performance, yet neglected to cultivate workers ' needs. If the Plant business integrates the Maslow’s Hierarchy of Needs into their strategic management process, it will guide them in evaluating employees’ needs. Engstrom Auto Mirror Plant should settle on the choice of keeping the current system in place, modify it, or design a new incentive plan. Keeping the ongoing incentive plan would be an awful decision for different reasons that were examined in preceding milestones; subsequently, the undeniable decisions would be to either correct the present plan or to make an altogether new one. For this proposition, it is ideal that a new incentive system be
In conclusion, this organization should focus more on their employees and less on profitability. This reasoning comes from the idea that efficient and appreciated employees will dictate the future of an organization through their quality of work and their outlook on the company they work for. Implementing rewards for employees and showing appreciation towards them will make them feel honored to work for such a company. In addition, word of mouth from employees will dictate in the inflow of new or current customers. If employees are treated fairly and respectfully, they are more likely to recommend their place of employment for shoppers. Finally, the implementation of a hybrid culture will benefit the company by meeting the needs of the employer, employees and customers alike.
Technology is constantly changing and the need to evolve is a must. As noted by (Stacey, 2011), companies must not just keep up. They must be leaders in innovations, so that they do not become the followers, but leaders as well, setting an example for all others to emulate. One aspect of the increasing of sales is to not just look at finances as the important factor. When employees are encouraged to create relationships with customers, win their trust and maintain that trust at all times. Finally, Pep Boys makes more money winning loyalty, practicing integriey and honesty than just pushing parts and service.
Adjustments must be made to the Scanlon Bonus Plan in order to increase productivity and product quality. Bonuses were paid too often which turned an incentive into compensation (Beer, 2008). Trust between employer and employees were severely disconnected due to the acts committed by management. Regardless of how necessary certain
RBC Financial Group uses a customer relationship management (CRM) strategy that provides a variety of services for a variety of clients. The strategy allows for individual customers to trust RBC and develop a personal relationship with each and every client. One major factor that allows CRM to operate effectively is the use of technologies and analytics to help classify each client’s financial situation. These customer profitability-based techniques allowed RBC to categorize their clients into A, B, and C groups so that the sales teams could optimize their efforts in catering to these different clients. This strategy holds the following strengths: optimizing sales efforts to different customers, easily accessible electronic sales leads, centralized and standardized financial decisions, and building personalized and sustainable customer relationships. There are a few weaknesses to the system though including the complexity in predicting future positions of companies despite the use of analytics as well as the complexity in creating consistency when using these
In the freight and cargo business, sales is a key factor to the profitability and longevity of a business, a topic that Craig Raucher knows well. Having spent years in the industry, he can claim responsibility for millions in revenues, all from his own sales knowledge and prowess. The strategies he creates within a sales department are not only effective, they build relationships with customers that are long lasting.
Currently the dominant player in a new arena, TeraTech a leader in the pharmaceutical industry, is a fiver year-old Customer Relationship Management (CRM) solutions provider. This CRM concept is relatively new, and its basic function is to help develop a complete picture of the industry customers, then evaluating those relationships across products and services.
Regions are divided into branches and sales teams covering specific customer industries and sectors. Martha Pauley, a Branch Manager, manages multiple sales teams in the Northeast Region. Previously branches sold all products in a specific city/area; branches are now tasked with selling one product group over a much larger geographic area (Dynacorp Revisited, 2005: M-2, 86). The sales ...
Soman,D & Marand, S (2009). Managing Customer Value: One Stage at a Time.: World Scientific Publishing. p9-14.
Or, then again perhaps, VTB can use the CRM structure to discover about better customer advantage, deliberately pitching, and market designs. According to Bang (2005) CRM is viewed as an educated business philosophy to make and keep up whole deal customer associations. For example, CRM system would be an enabling specialist of business comes about like future repeat purchases. VTB's should use the CRM as a focus business methodology to robotize customer advantage. All things considered, customers tend to put orchestrate at long last and expect the package passed on time. Henceforth, on the operational side, data must be gotten, fused, arranged and fulfilled, to satisfy its targets (Bang 2005). The operational viability of the CRM structure is to accumulate the data from customer to be deciphered later on to
Richard, J. E., Thirkell, P. C., & Huff, S. L. (2007). An Examination of Customer Relationship Management (CRM) Technology Adoption and its Impact on Business-to-Business Customer Relationships. Total Quality Management & Business Excellence, 18(8), 927-945. doi:10.1080/14783360701350961
This paper presents a case study regarding Omega Inc., which has a contract sales force for its products. The contractors are employed by independently operated franchised dealers and do not work directly for Omega. Recently, Omega provided a training program for the sales force designed to improve sales performance and the franchisees instituted a performance management system to measure goal accomplishment. There are six primary steps in a performance management system and this paper will review five of the six steps as each relates to the subsequent step.