Proposal Plan Essay

Custom Student Mr. Teacher ENG 1001-04 7 November 2016

Proposal Plan

The purpose for the organization Riordan Manufacturing is to stay put in a dynamic, self-motivated and energetic business environment. Riordan Manufacturing is a successful business looking to progress overall presentation and place the company for potential expansion. In order for this to follow through, a total rewards program needs to be created. The incentives and compensation plan, must connect with the goals of the organization. A solid rewards program will build motivation in the work place. As the text states, ” the notions that rewards are means to motivate employees assuming that the rewards are distributed fairly. Rewards seem to be part of many different perspectives in motivation.” (Shani & Chandler, 2009, p. 8)

The most important part are the employees in this organization, and sadly the motivation is not up to par. Employees who lack motivation, insinuates that employees are not receiving proper rewards. Instead of management focusing on only one specific part of a department, they should rather work together towards a solid vision for the business. Presently, there is room for opportunity, to actually analyze the Human Resource Management system and see what are the problems which are leading employees to show lack of motivation. (Riordan Manufacturing, p.2) Through various research, employees and outside sources, especially Human Capital Consulting firms, believe that financial compensation is lower than market value. Employees are also not comprehending how pay intertwines with job performance. 2003 to 2004 surveys show that employees think that pay connects to seniority. (Chen & Hsieh, 2006, p.13)

Adding to standard compensation, individual rewards are not well connected to performance. For example, departments like IT and R&D focus the sales force and rarely see no return. The lack of proper positioning for financial compensation and work performance is causing confusion and affecting the motivational problems. Riordan Manufacturing needs to acknowledge that employees views need to be considered. Hence why the distance in understanding between the employees and the business needs to be fixed.

Alterations to financial compensation can be expensive. The consultant from Human Capital Consulting the reward and compensation system needs to be fully reformed. The total cost of the reward system alterations are about $175,000. Since the business has been dealing with sales declining an investment of that sort would put the organization at a high risk. (Gross, 1994, p.1). Even though it has to deal with that expense the organization has the chance to compete better in the market and lessen the risk of losing employees to other businesses due to financial compensation formats. This problem can be resolved if the management team at Riordan Manufacturing takes into consideration the cause of external competition. Key objectives to consider are to make certain that the pay is enough to attract and sustain employees. If employees do not see that their pay is competitive compared to what other organizations are giving for the same type of work, then that might cause for the employee to leave.

Even though employee motivation and financial compensation are viewed as big problems for Riordan, the business ability to form attraction and support career enhancement has been weakening. The problems can be caused by the lack of Human Resource Management in the business strategic human capital management, with a failure by leadership to form a successful culture that aids the business objectives. As the business sets itself straight and alters its strategy, it will be vital to effectively train employees and make certain that they are set for the challenges that come their way. Sadly, motivation issues are harming the business and may affect the strategic changes. Examples of the weak culture and employee development are seen in the Research & Development and IT parts of the organization. Each section contributes to the success of the business but receives rarely any recognition, whether it is pay or just an overall recognition.

Riordan Manufacturing has the chance to brace the culture and form a complete employee development system that supports the enterprises vision and goals for the future. To add to this the business has the ability to explore other areas aside from the financial compensation to augment employee motivation and job satisfaction. Executing a career development system will not be enough for long-term enhancements. Management at Riordan Manufacturing will need to center on building situations that practice career development. (Mason, 2000, pg. 22)

Employees at Riordan Manufacturing have different interests. These interest can include financial compensation, career enhancement or development, strong and effective communication and of course support from the management team. Employees have the right to be rewarded fairly and be acknowledged for their efforts and hard work to the organization. To add to this, employees have the right to be included in the organizations culture instead of being part of teams that are divided up. This usually leads to a lack of direction. Employees crave cooperation, a challenging working environment and dedication. That’s why effective end state goals would be to make certain that employee motivation is being measured effectively. Also, form career development plans and spot out important achievements within the business.

Not only employee motivation should be worked on, but also set up a comprehensive rewards system. The reward system will give employees the chance to take charge of their reward as well as form a spot to market benefits that pertain to Riordan Manufacturing employees. An internal web application should be created by HR. (Donavan, 2005, pg12) The system will center on benefits administration, cross-function team goal management, and incentive rewards tracking systems. Employees will have the option of reviewing their benefits and make alterations on their time. Also, managers will be able to appraise the improvement and donations made by cross-functional teams. Sales statistics will also be part of the reward system to keep track of sales performance.

Riordan Manufacturing needs to restructure its employee compensation program. This means, that the organization needs to first acknowledge that employee motivation is low. From there, increase it, by rewarding employees for a job well done. Acknowledging them in front of their employees, and even bonuses will be nice. Flexible schedule is so important. Basically, re-evaluating everything to make certain that employees are feeling valued.


Chen, H.M., Hsieh, Y.H. (2006). Key Trends of the Total Reward System in the 21st Century. Retrieved January 5, 2013 from, Donavan, D. (2005). Don’t bar bosses from extra perks. Employee Benefits; p9-9, 1/4p, 1c. Retrieved from EBSCOhost Database. 18382022 Gross, S.E., Paul, B.N. (1994). Missing links?. Across the Board; Vol. 31 Issue 2. Retrieved January 15, 2013 from, EBSCOhost Database. 9411170727 Mason, J. (2000). Getting Paid For Giving Advice. Financial Planning; Vol. 30 Issue 6. Retrieved January 11, 2013 from EBSCOhost Database. 3182580 Riordan Manufacturing. Retrieved January 3, 2013, from http://riordan-
Shani, A.B. R., Chandler, D., & Coget, J. (2009). Behavior In Organizations: An Experiential Approach (9th ed.). Retrieved from The University of Phoenix eBook Collection database.

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