HRM and Motivation

HRM and Motivation

HRM and Motivation

Problem Solution: Riordan Manufacturing

Riordan Manufacturing, Inc. is a global plastic manufacturing corporation that has 550 employees with an annual income of $46 million. The corporation's needs to maximize its profits and has decided to implement a customer-relationship management (CRM) system that is team based and produce new innovative products. Issued have developed with the new changes. Since opening the China factory, employees are leaving the company and the company has to resolve how to retain the specialize workforce. The annual employee survey showed that employees' morale was low because of the present seniority-based compensation and benefits offered. Barbara Masterson of Human Capital Consultants was hired to assess whether a new compensation package should be constructed, which the review confirmed along with recommendations of a further assessment of the Human Resource Management (HRM).

Evidence for Relations between Best HRM practices and Commitment

Although limited, there is some empirical evidence linking employee commitment to actual and perceived Best HRM practices. Of the HRM functions examined in this research, evaluations of career development practices were found to be the best predictors of affective and normative commitment. This is perhaps not surprising given that these practices are involved in preparing employees for a future in the organization (Tannenbaum; et.al. 2001 759).

Situation Analysis

Issue and Opportunity Identification

Riordan Manufacturing, Inc. (Riordan) has developed a new business strategy to maximize its profits. The company plans to introduce new products and implement a customer-relationship management (CRM) system that is team based to increase sales (Konovsky & Cropanzano 2001 707). However, the employees do not want to lose their individual commission. The research and development team wants recognitions for sales and needs better incentives to continue to work and focus on long-term projects (Ogilvie 2006 335). There is the issue of retaining employees, especially since the opening of the China factory, and a need for an overall total reward system that will motivate and satisfy employee to meet the company's goals ((Williams & Hazer 2006 219).

Riordan has the opportunity to implement a total reward system (compensation and benefits) to motivate and create job satisfaction for the employees. A total reward system “embraces everything that employee's value in the employment relationship” (Robertson; et.al. 2001 982). Implementing a total reward system creates another issue. The human resource management needs to be aligned in the company's hierarchy and align its practices to implement the total reward system.

Riordan Manufacturing, Inc. (Riordan) has three key stakeholders involved in the company: upper management, human resources, and employees. The CEO and upper management are interested in the financial well-being of the company, employees' performance, and employee retention to satisfy customers. The upper management has the right to make decisions that will maximize the company's profits. The group's values include personal gain, fairness, accountability, credibility, reputation, and employee equity.

The human resource management (HRM) has an interest in being able to implement the total reward system to motivate employees to meet Riordan's ...