Riordan Gap Analysis Essay Example | Topics and Well Written Essays - 1500 words

Riordan Gap Analysis - Essay Example Consequently, changes within the company have left Riordan to cope with a mass of challenges. Current changes have led to a decline in morale, work ethics, and employee retention. The consistent two-year regression means that the company has to focus on increasing sales and profit, aligning the staff, reducing turnover rates and increasing job satisfaction. The R & D department has the challenge of developing three new products to meet the following year. The strategic choice at the function level is â€Å"how should total compensation help gain and sustain competitive advantage† (Milkovich & Newman 2004). The company is faced with creating a new rewards system that includes compensation, salary, and benefits. The cost of implementing such a plan is also a concern for Riordan. The problem is the company is divided into three groups that do not agree or have different perspectives on rewards motivation, how to disburse incentives and what department should receive compensation. Some chief officers do not agree that a compensation system should be implemented, which has lead to an even bigger dilemma. Ultimately, while the challenges are seemingly overwhelming, there is a silver lining of opportunities available to Riordan. â€Å"Managing compensation strategically means fitting the compensation system to the business and environmental conditions† (Milkovich & Newman 2004). The CEO has allocated $50,000 to higher a consultant. This allows the company the opportunity to develop a solutions study survey that can help with job satisfaction, decrease turnover, and increase employee morale. This study will identify the underlying issues leading to decreased employee satisfaction and recommend potential mitigations for addressing the issues. Equally important are the stakeholders’ needs and ethical dilemmas that have developed with the challenges and