please see the attached file.

The challenges of today's global business arena are legion. Much like emergency room doctors, effective managers must carefully, yet quickly and accurately analyze each situation, diagnose the correct problem and proceed to apply the correct solution. In this fast-paced, challenge wrought environment managers and the business organizations under their leadership have to make critical decisions on a routine basis. Making the correct decisions is essential to the survival of these operations, much in the same way that the survival of an emergency room patient depends on the correct diagnosis and treatment of an emergency room trauma. Just as emergency room doctors are successful in making correct diagnoses only when they follow a step-by-step diagnosis model, business managers can only identify the correct problems to solve, among the many they may face when they use the 9-step problem-solving model in correct order. Progressing in the correct order through the model will effectively guide managers toward identifying the correct problem, the most suitable available alternatives, and will ultimately help them in the implementation or execution of solutions. In the 9-step model begins this process by first describing the situation the at hand. A case in point is a complex business challenge at Riordan Manufacturing.

This paper will analyze the situation, opportunities and challenges of Riordan Manufacturing identifying the underlying problems with Riordan's human capital management using the 9-step problem solving model. The end-state goals and the proposed alternatives will help Riordan Manufacturing to improve human resource practices, giving Riordan a sustained competitive advantage (Dreher & Dougherty, 2001).

Situation Analysis (Step 1)
Riordan Manufacturing is an international plastics manufacturer with 550 employees and $46 million in projected annual revenues. 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 approach but also prompted it to adopt a customer-relationship management (CRM) system. 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 plan is that the team approach will improve sales (UOPOa, 2006).
Riordan Manufacturing has seen a consistent drop in employee satisfaction over the last 12 months and the increase of voluntary separations has doubled in the past year in every department. These numbers are alarming and speak of issues that could lead to disaster for Riordan if they are not recognized and quickly addressed.

Situation Analysis (Step 1)
Issue Identification
The first issue at hand is employee retention. It is evident that employees are leaving for higher pay. It is possible that Riordan is paying under the market average for these positions. This is a major concern for the research and development area in saving vital employee knowledge.

Secondly, the employee incentive program is an issue not only for management but also for the current employees. The sales incentives are structured for an individual salesperson rather than for a team. This issue has come about as a result of the change in the sales approach from individual accounts to a team approach incorporating a sales person, a product engineering specialist, and a customer service representative with support from research and development (UOPOa, 2006). The sales process has changed but the incentive/bonus process has not aligned itself to the change.

Another issue for Riordan is employee development and training. Riordan has done little to promote the training or development of its employees in recent years, an approach that would be a strategic advantage for the company. Training and development not only helps to attract top performers but will also provide incentive for retention (Dreher & Dougherty, 2001).
The human resources department reports to the finance department with no direct influence with the CEO, making it inefficient. Riordan needs a superior human resource management system to gain strategic advantage in human capital management (Dreher & Dougherty, 2001).

Finally employee satisfaction has dropped dramatically in the past year. This is because of employees' not feeling challenged, lack of appreciation, and lack of direction tied to the company's goals. Satisfied employees will promote a positive organizational climate and lead to increased productivity for Riordan (Dreher & Dougherty, 2001).

Opportunity Identification
Internally, each of these challenges present opportunities for learning and development. The company can evaluate current employees and determine their effectiveness in the new sales management system. The change process also provides opportunities for the management team to develop expertise in the areas of morale improvement, addressing and resolving employee dissatisfaction, and positive conflict management. The team approach to sales will provide opportunities for employees to collaborate and bring more complete customer solutions to the table.

Another opportunity is the indication that twenty-five percent of employees are high achievers. The company also has a large group of mid-tier performers who can be developed into high performers through training. Many of the employees like their jobs, are loyal, and want to stay with Riordan. Riordan has a reputation for treating employees well and the company is ISO9000 certified and practices the Six Sigma quality approach.

Further, Riordan has diversified product offerings and a diversified customer. New business opportunities exist in meeting the new needs of these customers.
Table 1
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
Course Concept
(Include citation) Concept
Employee Retention
Riordan can learn better retention practices for the future including designing more effective compensations packages
According to the American Society for Training and Development (ASTD), retention is the number one issue facing corporate America today. Adding to the problem is the cost of attrition (Stone, 2000).
Effective Compensation Packages
Employee Incentive Program Riordan can use a strategically aligned incentive program to motivate to encourage employees to stay. Good HR practices include establishing a variety of incentives oriented toward a long-term organizational focus (Dreher & Dougherty, 2001). Incentive Programs as a Tool of Motivation
Employee Development and Training Riordan can use measurable training as a basis for merit raises that motivate current employees and will attract top performers. Training and development not only helps to attract top performers but will also provide incentive for retention (Dreher & Dougherty, 2001).
Successful Recruiting Practices, Motivation
Lack of an Effective Human Resources Department Riordan's management team must align its goals with the company's HR department. HR practices must be integrated and aligned closely, so that they reinforce each other and encourage behaviors that are compatible with organizational goals (Dreher & Dougherty, 2001). Motivation
Employee Satisfaction Riordan must keep its employees satisfied to retain them. Satisfied employees will promote a positive organizational climate and lead to increased productivity for Riordan (Dreher & Dougherty, 2001). Motivation

Stakeholder Perspectives/Ethical Dilemmas
There are several stakeholders to consider when looking at the current situation at Riordan Manufacturing and it starts with the investors of Riordan Industries who have seen investments declining over the past two years. From their perspective, Michael Riordan should be looking for a way to strengthen the company and turn profits around as quickly as possible so as not to lose more shareholders. Ethically, Riordan owes the shareholders a good return on their investment and must find a way to improve the current sales slump even if it means moving more of the manufacturing to the Hangzhou, China plant (UOPOa, 2006).
Another group of stakeholder is the customers, current, past, and new and how they perceive the changes within Riordan. The customers want to purchase a top quality product at a competitive price from a sound company they can trust. Riordan's responsibility is to make sure these customers are satisfied. The company must not be distracted by its internal issues, which can detract from the level of quality and service they rendered customers in the past.
The next set of stakeholders is the employees. A recent employee satisfaction survey shows a decline in employee job satisfaction and the senior management team cannot agree on the course of action that needs to be taken. The department heads are more concerned about their own employees and not the overall issue facing the company and the issue of what is best for all employees. There are issues with how the new customer-focused team approach to selling affects the morale of those involved with it and how it will change each person's role within the company. As these changes have been implemented along with moving more of the manufacturing to China, Riordan has seen a decline in employee retention (UOPOa, 2006).
Ethically Riordan must consider the changes it is implementing and decide what are the best solutions overall to satisfy all stakeholders and do not compromise the integrity of the company which has been the backbone of Riordan since its inception.
Table 2
Stakeholder Perspectives
Stakeholder Perspectives

Stakeholder Groups
The Interests, Rights, and
Values of Each Group

Riordan's Investors They expect a good return on their investment and want Riordan to find a way to improve the current sales slump even if it means moving more of the manufacturing to the Hangzhou, China plant.
Riordan's Customers They want to purchase a top quality product at a competitive price from a sound company they can trust.
Riordan's Employees They are dissatisfied with their jobs and fear they may lose their jobs if the company shifts most manufacturing to Hangzhou, China.

Problem Statement (Step 2)
Formulation of a problem statement for Riordan Manufacturing will help lead the management team to find solutions and opportunities for the future. Riordan Manufacturing needs to remain a successful global plastics producer. The company also needs to build and retain a loyal and productive workforce that will provide stability and success for its future. An appropriate problem statement for the company would be: Riordan Manufacturing will remain a successful global plastics producer by building and retaining an energized and productive workforce.
End-State Vision (Step 3)
Riordan Manufacturing must work toward developing and retaining an energized and productive workforce and the first goal to achieve to that end is to increase overall job satisfaction among employees. The most recent employee survey shows a steady decline in overall satisfaction from 4.2 in 2001/2002 to the current average score of 3.1. A strategic goal for Riordan would be to increase and maintain an average overall satisfaction score greater than 4.0.
Another goal for Riordan would be to provide and maintain a compensation and benefits package that would attract and retain top performers. The overall satisfaction rating of the pay and benefits at Riordan Manufacturing for 2003/2004 was 2.5. Although this score was highest at 3.4, to achieve maximum advantage in human capital Riordan should attempt to lead competitors in the industry with a rating equal to or greater than 4.0. Implementing bonuses and incentives for job performance will provide the most gain in satisfaction along with increased feedback regarding job performance is likely to yield good results.
Finally Riordan must work to retain current employees. Employee retention has also steadily declined since 2001.The area most alarming is the voluntary separations, which is turnover that a company has not initiated (Noe et al, 2004). For Riordan this rate has increased more than 50% over the past two years. A strategically aligned goal for Riordan would be to decrease and maintain the consolidated voluntary separation rate less than 4%. This would lead to a decrease in the overall consolidated turnover rate.
Alternative Solutions and Benchmarking (Step 4)
Research into companies who have had success with similar issues will provide valuable alternatives for Riordan to consider. This paper makes use of benchmarking research on the topics of employee motivation and performance, employee retention and career development, employee rewards and compensation, and alignment of HR strategies with organizational goals. The research includes and analyzes several companies to provide the widest possible perspective and alternative solutions for Riordan.
Employee motivation is a critical issue for every company. Employees are motivated to action or performance by different things at different times in different situations. Managers must be able to motivate and lead their employees effectively through all these variables, and the issue then becomes what method to use.
The factor that determines if employees choose to pursue desired performance over undesired performance is whether management increases the net reward for desired performance, as employees perceive it. This means that management must maximize what workers like about the desired performance so that it outweighs what workers do not like about it (Correll, 2004). This of course differs from situation to situation, as illustrated through the following two cases demonstrate different yet equally effective approaches to employee motivation and performance.
Connextions is a provider of outsourced call-center and fulfillment services. One way Connextions increased performance and motivation of its employees was to implement a management benchmarking program. This program recognizes high-potential employees and mentors them and they are guided through individualized career-development programs after proving themselves as top salespeople. This is unusual for the call center industry, as only 38% of call centers offer a formal skill path for their employees, according to a survey by the Incoming Calls Management Institute (ICMI), a call-center consulting and research firm based in Annapolis, Maryland. The formal programs are not all that motivate and get top performance from people in the call center business or any other, it is about providing coaching, direction, and feedback, and it is about not letting employees become just another number (VNU Business Media, 2006).
Riordan can motivate its employees by taking lessons from the Connextions example above. Riordan can easily maximize employee satisfaction with the desired performance, staying at Riordan, through showing its especially outstanding employees appreciation and recognition providing them with the opportunity to advance and succeed within the company. Riordan must regularly evaluate the performance of its employees recognizing the star performers and providing them with individualized training programs that encourage them to stay with and advance within the company or risk the continued wave of unsatisfied employees leaving the company.
Alberto-Culver is a manufacturer and marketer of personal-care, specialty groceries and household products. Seven years ago its rate of employee turnover was twice the industry average. Since then the company has cut that average in half. The firm developed a list of 10 cultural imperatives: honesty, ownership, trust, customer orientation, commitment, fun, innovation, risk taking, speed and urgency, and teamwork. Alberto-Culver also established growth-development leaders to mentor for future growth. Formally a closed-off company became an open and communicating company. The company also started recognizing important achievements and did so throughout the entire company (Human Resource Management International Digest, 2002)
Riordan can use many of the same principles that Alberto-Culver incorporated into its organization. This may mean initiating a fundamental culture change throughout the company and establishing a mentor program to develop the next generation of management according to the new company culture. This along with rewarding and celebrating both small and large successes within the company can minimize the negative aspects and increase the net reward of the desired performance, again staying at Riordan and allowing the company to retain its human capital.
Employee retention is the most critical issue facing corporate leaders because of the shortage of skilled labor; economic growth and employee turnover. Supervisors must take responsibility for employee retention. A wise employer will learn how to attract and keep good employees, because in the end, this workforce will determine a company's success or failure. Employee retention requires being sensitive to people's needs and at the same time aligning these needs with the organization's strategic needs. Career development is important to employee retention as it can reduce costs due to employee turnover thus aligning employee training needs with the organizational need to save money as demonstrated through the Qualcomm example.
With a 4% turnover rate, Qualcomm has set itself apart as the industry leader in employee retention. As an entrepreneurial company populated by academics, mathematicians and scientists with advanced degrees, Qualcomm staunchly preserves a culture that is fluid, innovative, flexible, independent, and un-bureaucratic. The closest thing they have listed to a dress code is no shoes should have ears. This came from someone wearing bunny slippers to work. One of their main reasons for having such a high retention rate is their education development. They have established a Learning Center with 30 employees dedicated to the development and education of the company. The center does not teach the classes itself but is a source which will find and set-up classes by outsourcing the work to a professional that is a leading source of information in that field (A Story to Tell, 2005).
Riordan can likewise learn to harness and develop its own workforce to be an added value to the company through providing continuous learning for its employees. Continuous learning can in turn be used as a tool in employee career development which will show employees that the company cares enough to invest both time and knowledge in them. Employees who are thus continuously trained, prepared and encouraged toward career advancement are much more likely to stay motivated on the job and stay with the company for the long run.
Another means of employee retention are incentive based programs. Incentive programs can improve communication and build positive attitudes of employees who are assigned to do similar tasks. The most effective incentive programs have well-defined goals that clearly indicate job standards and rewards. They also recognize employees who acquire new skills and open lines of communication with management (Material, 2005). These programs always improve productivity, which leads to higher profits. Incentive travel programs are the most recognized and successful motivational tools available. They provide a 'once-in-a-lifetime' experience designed to motivate people and recognize participants for meeting exceptional levels of performance in support of a company's goals. A company looking for new and innovative ways to increase its revenue and profits, improve customer satisfaction, promote team building, or provide a platform for both training and reaching new business goals, may want to invest in an incentive program as demonstrated through the Capital One example (Pfeffer & Veiga, 1999).
Capital One, a well known credit card company, uses company shares as an incentive plan to retain top employees. The top merit of this plan is that it aligns itself with the return on investment to its shareholders. "We uphold the belief that, as owners, associates change the way they view their jobs, each other, and Capital One because there is a personal financial stake in the success of the company" (Pollitt, 2003).
Riordan could also retain key employees by offering shares as performance benefits, thus giving its employees a strong sense of ownership in the company which can be highly empowering and empowerment is an almost certain path to employee motivation.
Rewards and compensation are another human capital retention area that Riordan needs to improve through learning best practices from other companies. Turning employees into owners by having management give up some control of the work process and by rewarding successful employees and teams is what has made Nucor Steel successful in retaining skilled employees (Nucor, 2006). Nucor is proving the value of empowering their employees and has gained their loyalty. In an industry, which has seen many companies go out of business or move out of the United States, Nucor stand alone in that the company has not lain off or furloughed a single employee for lack of work in the past 20 years. Knowing they can triple their salary by delivering defect free steel is motivation to stay with Nucor. If the company has a sub- par year employees make less than the industry average for wages but as they continue to have record sales years with top quality steel, the employees will make well over the industry average wage (Nucor, 2006). Another benefit that has become very popular and contributes to employee retention is Nucor's commitment to their employees' families by offering four-year scholarships of up to $2,500 per year for their children. This not only invests in the employees' future but their family's as well. The ultimate test of all HR strategies, of course, is whether they align properly with organizational goals.
The benefits of a workforce strengthened by proper motivation and enhanced performance through compensation, incentives and career development are extensive but to mitigate the risk associated with the expenses involved in these remedies, companies such as Riordan need to align all of them with the company's vision and strategic plan. The importance of proper alignment of HR strategies with organizational goals is evident in the Best Buy example.
Best Buy CEO Brad Anderson requested more creative incentive programs to be implemented for Best Buy employees. Stock options were the primary incentives that had been used by the company. Feedback was obtained from the managers and executives currently participating in the incentives program and a plan offering a mix of performance shares and restricted stock was developed. The plan offers employees 4 different options to choose from. Jack Dolmat-Connell, CEO of an executive compensation consulting firm, says when a company offers choices in incentive plan they are recognizing that different employees have different needs. Choices will help employees find that right one for them and will ultimately help with recruitment and retention efforts. Best Buy conducted a follow-up survey which showed that offering a choice of incentive options lead 83% of the respondents to remain with the company (Marquez, 2006).
Offering stock options to Riordan's employees as another form of compensation will not only give employees choices it also creates incentives for the knowledge base of the company to stay with it during this critical time of transition. Potential employees will see stock options as a benefit of employment with Riordan therefore adding value to recruitment efforts, another critical organizational strategy during this time. .
Analysis of Alternative Solutions (Step 5)
Alternative # 1: Regularly evaluating the performance of employees recognizing the star performers, both individuals and teams, and providing them with individualized training programs that encourage them to stay with and advance within the company will advance all three of Riordan's goals to increase overall employee job satisfaction, improve compensation package and employee retention.
Alternative # 2: Initiating a fundamental culture change throughout the company and establishing a mentor program to develop the next generation of management according to the new company culture affects employee job satisfaction and employee retention through establishing a new culture of trust that fosters career development, but has only a moderate effect on improving the compensation package.
Alternative # 3: Rewarding and celebrating both small and large successes within the company similarly affects employee job satisfaction and employee retention through motivating employees to perform at their best in all instances, but it has less of an effect on the compensation package.
Alternative # 4: Investing in continuous learning programs to promote employee career development affects all three company goals positively. Continuous learning is an excellent tool in employee career development and will show employees that the company cares enough to invest both time and knowledge in them. Employees who are thus continuously trained, prepared and encouraged toward career advancement are much more likely to stay motivated on the job and stay with the company for the long run.
Alternative # 5: Offering company stock options to employees as performance benefits, gives employees a strong sense of ownership in the company and has an equal effect on all three of Riordan's goals. It will raise the satisfaction level of high performers by improving the compensation they receive and thus encourage them to stay.
Alternative #6: Giving employees control some of the work processes will impart to them a sense of ownership in the company thus empowering and motivating them to perform better. This alternative is a crucial one even though it does not have a direct impact on the compensation package, because employees who feel they have ownership in the company are more likely to stay with the company.
Table 3
Analysis of Alternative Solutions
Alternative Solution Evaluation Matrix
Alternatives Scale: 1 = Low, 3 = Medium, 5 = High Goal 1
Increase Overall Employee Job Satisfaction Goal 2
Improve Compensation Package Goal 3
Improve Employee Retention Goal 4
Goal 5
Goal 6 Totals
25% 25% 50% 100%
First Tier
Alternative 1
Regular performance evaluation and recognition of team and individual star performers 5
5*.25= 1.25 5
5*.25= 1.25 5
5*.5= 2.5 5
Alternative 2 Fundamental culture change and establishment of a mentor program 5
5*.25= 1.25 3
3*.25= .75 5
5*.5= 2.5 4.5
Alternative 3
Reward and celebrate all small and large successes 5
5*.25= 1.25 3
3*.25= .75 5
5*.5= 2.5 4.5
Alternative 4
Invest in continuous learning 5
5*.25= 1.25 5
5*.25= 1.25 5
5*.5= 2.5 5
Alternative 5
Offer company stock options to employees as performance benefits 5
5*.25= 1.25 5
5*.25= 1.25 5
5*.5= 2.5 5
Alternative 6
Give employees control over some of the work processes 5
5*.25= 1.25 3
3*.25= .75 5
5*.5= 2.5 4.5
Second Tier
Alternative 1
Design a compensation package that: includes regular performance evaluations and recognition of team and individual star performers; rewards and celebrates all small and large successes; invests in continuous learning; and offers company stock options to employees as performance benefits 5
5*.25= 1.25 5
5*.25= 1.25 5
5*.5= 2.5 5
Alternative 2
Design a non-monetary motivation plan that: includes fundamental culture change and establishment of a mentor program; and empowers employees through giving them control over some of the work processes 5
5*.25= 1.25 5
5*.25= 1.25 5
5*.5= 2.5 5

Narrowed List of Alternatives
Alternative 1: Design a compensation package that: includes regular performance evaluations and recognition of team and individual star performers; rewards and celebrates all small and large successes; invests in continuous learning; and offers company stock options to employees as performance benefits.
Alternative 2: Design a non-monetary motivation plan that: includes fundamental culture change and establishment of a mentor program; and empowers employees through giving them control over some of the work processes
Risk Assessment and Mitigation Techniques (Step 6)
There will always be risk associated with change and both options on the narrowed list of alternatives involve change. The following is a list of the potential risks and ways to minimize those risks.
The first alternative to design a compensation package can become time consuming, expensive and runs the risk of failure through neglect, poor execution and failure to evaluate the direct results on company goals. To mitigate these risks the compensation package must be rigorously planned in accordance with the company's strategic goals and have measurable results. Riordan's HR department must be both empowered and charged with the responsibility to make the compensation package a success.
The second alternative which involves designing a non-monetary motivation plan that includes fundamental culture change, establishment of a mentor program, and empowering employees is also time consuming, and can become costly if it fails to retain employees after they have gone through expensive training programs. The company also runs the risk of employees overstepping their bounds and causing chaos.
The benefits from a strengthened workforce are extensive but to mitigate the risk associated with training and education, Riordan would need to align all training and education with the company's vision and strategic plan. One way would be to cross train manufacturing employees and compensating them for the training, also setting up leadership mentoring programs with clearly defined boundaries for employee authority.
Table 4
Risk Assessment and Mitigation Techniques
Risk Assessment and Mitigation Techniques
Alternative Solution Risks and Probability Consequence and Severity Mitigation Techniques
Alternative 1
Design a compensation package that: includes regular performance evaluations and recognition of team and individual star performers; rewards and celebrates all small and large successes; invests in continuous learning; and offers company stock options to employees as performance benefits ? Failure to execute
? Failure to measure results

? Loss of time
? Loss of money
? Failure to meet future vision goals such as employee retention
? Goals must be aligned with company strategy
? Empower HR department to be responsible for execution
? Measurable results
Alternative 2
Design a non-monetary motivation plan that: includes fundamental culture change and establishment of a mentor program; and empowers employees through giving them control over some of the work processes ? Failure to execute
? Failure to measure results

? Employees could overstep their boundaries

? Loss of time
? Loss of money
? Failure to meet future vision goals
? Cross training manufacturing employees
? Goals must be aligned with company strategy
? Establish a clear framework for where worker authority begins and ends

Optimal Solution (Step 7)
There is seldom a single best solution to any problem. Rather there are usually a set or range of alternatives, one or more of which may work. This step of the 9-step problem solving model entails the identification of those alternatives and any assumptions and constraints that may exist which can limit the identification of possibilities or creative solutions and alternatives (UOPOb, 2006).The optimal solution for Riordan is to use both tier 2 solutions simultaneously, because this will allow the company to both motivate and retain employees and it can shorten the overall schedule for both alternatives, which partially mitigates the cons for both alternatives.

Implementation Plan (Step 8)
Michael Riordan has committed to spending the money needed to make the necessary improvements and recommendations from Barbara Masterson of Human Capital Consulting who was hired to look at the issues being discussed. While the recommended changes will begin to be implemented immediately, it will take some time to complete based on the number of manufacturing plants and employees involved. Implementation will occur in stages over the next 12 months (UOPOa, 2006).
The first stage to complete will be the salary survey and adjustments needed to position Riordan competitively in the marketplace with regard to base wages and salaries. This will take three months to complete. The second stage to complete will be the compensation package based on the changes in the sales strategy and will incorporate all employees who support the sales process including the R&D team. During this development process training will be ongoing with regard to the new sales strategy. This will take six months to complete. The third and final stage will be to develop a performance appraisal process, which will provide a clearer understanding and alignment with the strategic plan and the employee reward system. The appraisal process will identify superior performers for potential advancement but will also identify employees who are not performing up to the clearly defined performance expectations and allow for actions to be taken to remedy the situation, either improvement or termination. This will take 12 months to complete (UOPOa, 2006).

Table 5
Optimal Solution Implementation Plan
Deliverable Timeline Who is Responsible
Salary Survey 3 months from start Barbara Masterson of Human Capital Consulting
New Compensation Package 6 months from start Riordan Human Resources Department
Training program 6 months from start Riordan Human Resources Department
Performance Appraisal Process 12 months from start Riordan Human Resources Department

Evaluation of Results (Step 9)
In the end, Riordan can define success by looking back at the end-state goals. Measurements of overall employee satisfaction will be captured at the end of one year with the goal of scoring greater than 4.0. After implementing the new compensation package, the goal was to reach a rating of 4.0 or greater in the next year. The final goal will be realized if the consolidated voluntary separation rate is less than 4% also at year's end. Future success will be defined by continually achievement of the end-state goals for years to come.
Riordan Manufacturing can realize success by implementing improvements to solve the underlying problem with human resource management. Through thorough analysis and problem definition, strategic advantage in human resources can become reality at Riordan Manufacturing. By making the suggested changes, Riordan Manufacturing will remain a successful global plastics producer by building and retaining an energized and productive workforce.
Table 6
Evaluation of Results
End-State Goals Metrics Target
Increase Overall Employee Job Satisfaction Employee job satisfaction survey Score greater than 4.0
Improve Compensation Package 1. Employee separation rate
2. Employee job satisfaction survey 1. Less than 4%
2. Score greater than 4.0
Improve Employee Retention
Employee retention rate Less than 4%

Conclusion
The advantages of using the 9-step problem-solving model correctly become clear once managers put it to use in identifying the problem that truly needs solving among an array of challenges such as those facing Riordan . To identify this problem using the 9-step model, as in the Riordan case scenario, it is first necessary to describe the situation (Riordan's need to adopt a customer-relationship management (CRM) system). This first step of the 9-step model is in itself a 3step process involving identification of the issues (the need for employee retention and training, the need to align HR direction with new organizational goals, low employee morale) and opportunities (learning better retention practices, using a strategically aligned incentive program to motivate and encourage employees to stay , and using measurable training as a basis for merit raises) as well as stakeholder perspectives and ethical dilemmas (balancing the needs of investors, customers and employees). The next two steps of the model are to define the problem (the need to build and retain a loyal and productive workforce). Only after completing the critical first three steps it becomes possible to move on toward steps four through nine of the model, identifying (4) and evaluating (5) alternatives and assessing their positive and negative risks (6) , making the necessary decisions (7), implementing the decisions (8) and evaluating the results (UOPOb, 2006).

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