Rudy Burns, Steven Delgado, Augusta Gose
February 4, 2013 Change Management Plan
Riordan Manufacturing formal leaders consist of the chief executive, presidents, vice-presidents, high-level managers, middle-level managers and low-level managers. Each person is responsible for implementing changes that will benefit the structural system for the company. According to the organizational charts, the organization is separated into various departments and function areas. For example, the human resources department is responsible for benefits, policies, procedures, job classification, annual reviews, and survey results. Informal leaders have non-official positions like secretaries, maintenance people, auditors, and others who carry out the vision and mission of the company. A gatekeeper does not hold a position of authority, but they usually work closely with the formal leaders of the company.
The power and political structure of the organization frustrate employees when decisions are made that lack vision or reasoning behind the decisions. The system relies on clear and concise communication at all times. It is important that chief executive officers are provided accurate information at all times. Riordan Manufacturing had problems with employees; such as an inability to motivate employees and how to reduce the high turnover rate within the company. This was discovered through the Riordan human resources department structure, which does not allow employee empowerment. As a result, unbalanced profits and reduction in sales are delaying potential growth..
The human resources department needs to revisit some of their decisions to strengthen their portion of the structure and improve the company for the future. The high turnover rate has caused lack of employee motivation, low morale, and with pay levels below competitors standards; there is lack of structure in the performance review process within the entire company. These issues are correctable by creating a feedback process and panning career development programs by either creating or improving their current performance reward systems.
Riordan Manufacturing has selected a structure that will require employees to use one customer management system. Therefore, Riordan has adopted a structure that closely resembles a bureaucratic nature. Standardization is the key concept in manufacturing. The formal leaders within the Riordan Manufacturing are each responsible for implementing changes that will benefit the structural system for the company. Organizations structures can have significant effects on its members. Potential effects of a bureaucratic structure on employee behavior are attributed to its formalized, mechanistic model where fairness in policy and procedures is a large indicator of job satisfaction. The bureaucratic environment in which Riordan Manufacturing adopts high levels of work specialization contributes to higher levels of productivity but may sacrifice in areas of lower job satisfaction. This is connected to the high turnover rate at Riordan in addition to the low pay levels when compared to similar markets.
Management needs to consider the organizational structure and its effects on employees on an individual basis. In a bureaucratic environment management may consider looking into characteristics of employees who help determine their potential in working in such a structure and train employees through coaching and training to help them adapt to the vision Riordan management would expect from its employees. Employing those that prefer routine and security of specialized jobs may perform better in a manufacturing organization like Riordan.
Riordan Manufacturing culture is described in a descriptive term. The current structure and management operations want to reverse some of the current trends in the workplace that affect its organizational culture. Recent discoveries have uncovered