Premium Essay

Riordan External and Internal Equity

In: Business and Management

Submitted By serrano52
Words 312
Pages 2
Riordan Internal and External Equity Equity internal alignment is also called the existing relationship between the payment and the different labor positions, skills, and competence within the organization (Milckovich & Newman. 2008). Internal equity describes the comparison of wages paid to the employee performing at the same level or degree within the Riordan organization.
Moreover, the External Equity compares wages in the market competition, Riordan Manufacturing play where to employ and retain similar types of employees. It is based in Riordan's compensation system and pay structures. Riordan manufacturing work towards an equitable payment to the internal and external, which makes it attractive to retain and keep good employees.
The implementation of structural job, payments system, analysis, and business structures, which help to identify and define the labor content describing the duties and internal assignations to endorse equal compensation (Martocchio, 2009).
Additionally, external equality elements to identify market competition include, marketing surveys, researching new and current competitors marketplaces will help to maintain the company update in pay, and trends. Implementing internal and external equity Riordan will continue to be a successful organization.
A wage management process and rationale
The purpose behind Riordan program wages, is to get consistency in payment practices, supplemented by laws and regulations, especially with the commitment to equal employment opportunity and maintain a competitive salary (Virtual Organization, 2012). The labor compensation as described above is based on factors such as labor analysis, evaluations, job content, and market research and payment practices within the same industry.
The Merit-pay system is best suited to labor excellence, and the system of compensation and administrative programs...

Similar Documents

Free Essay

Ridoran Manufactoring

...Riordan Manufacturing Compensation Plan Team B- Diana Barris, Nicole Bell, Jacqueline Chaney, Shawnda Davis, Hadeel Raouf, Kelly Tyler HRM/324 Annette Clark-Davis February 11, 2013 Riordan Manufacturing Compensation Plan Riordan Manufacturing is a worldwide plastics manufacturer that is headquartered in San Jose, California. Their organization has over 500 employees and prides themselves on providing their customers with high quality merchandise to satisfy their plastics needs. They hold an ISO 9000 certification which is an organization that establishes and measures quality control. In order to meet or exceed the level of quality required under ISO standards, Riordan Manufacturing will need to have knowledgeable and skilled employees within their organization. To attract premier candidates for their company, the compensation plan that is designed will need to be fair, rewarding, and competitive. This paper will outline the compensation plan for Riordan Manufacturing and include an evaluation of current trends and predict future trends, internal and external equity, a wage management process and retirement plan, financial influence on the plan’s options, and discuss the methods in which the plan will be communicated to members of the organization. Key Objectives According to Martocchio (2009), “Compensation professionals promote effective compensation systems by meeting three important goals: internal consistency, market competitiveness, and recognition of...

Words: 1377 - Pages: 6

Premium Essay

Riordan Manufacturing Final Bsa/500

...Riordan Manufacturing BSA/500 September 9, 2013 Riordan Manufacturing This document considers the impact of external influences on Riordan’s business; assesses the current financial state of Riordan Manufacturing, using standard tools to analyze the income statement, balance sheet and cash position; examines the financial and accounting systems in use, and their efficacy; and, recommends potential improvements to these systems and their integration to other systems. These improvements include additional accounting software modules to facilitate reporting, internal and external audits, and regulatory compliance. Influences Riordan Manufacturing is a corporation that has several influences affecting business processes and its financial state. Most organizations are affected by economic, government, and legal influences to varying degrees. The key economic influences affecting Riordan Manufacturing are real GDP growth, inflation, labor cost, interest rates, global monetary values, and fuel prices. These economic influences have an effect on the operational cost and liabilities of Riordan Manufacturing. Tax rates, environmental regulation, customs regulations, and employment regulations are some key government influences that affect Riordan's operational cost and income taxes paid. Riordan is a multi-national corporation, the government influences of each nation Riordan operates in have different affects. The key legal influences are tax laws,......

Words: 2574 - Pages: 11

Free Essay

Riordan Compliance Plan

...Compliance Plan - Riordan Jennifer Stucky Law 531 - Business Law August 20, 2010 Professor Musafia Compliance Plan – Riordan International Law Riordan currently has a joint venture with a small consortium of Chinese nationals in China. The joint venture project produces plastic fan parts in Hangzhou, China. Riordan shall meet all fiduciary duties of loyalty and care in this joint venture as it is liable for damages for any breaches caused. Riordan shall adhere to the regulatory laws of China regarding how the operations in Hangzhou are run. Riordan shall ensure compliance in this area by establishing within their contract with the Chinese joint venture partners the responsibility to interface with local vendors, governments, and regulatory agencies. Riordan shall ensure compliance with all bilateral treaties with the United States and China or other countries they have customers with. These treaties are equivalent to international legislation. Riordan shall ensure compliance with these treaties by checking with the United Nations for all registered and published treaties and will update their policies within 30 days. Riordan shall comply with the United Convention on Contracts for International Sale of Goods (CISG) with its customers in Japan, China, Italy, Taiwan, Germany, Canada, United Kingdom, Brazil, India, Thailand, and Russia. The CISG establishes the rules governing the formation, performance and enforcement of the international sales......

Words: 1255 - Pages: 6

Premium Essay

Financial Analysis Memo

...Financial Analysis Memo To: Riordan Manufacturing CEO From: Accounting Date: October 22, 2012 Re: Ratio Analysis This memo outlines the findings to a recent horizontal and vertical analysis completed on Riordan Manufacturing. The analysis was performed in order to notify the company of prospective external interests. Users who express interest in the company are able to utilize the calculated ratios to disclose Riordan’s performance and it’s most updated position. Attached is the horizontal and vertical analysis that includes calculation of profitability, liquidity, and solvency ratios. The financial stability and health of Riordan are outline within these ratios. The liquidity ratios comprise the acid-test ratio, the current ratio, and inventory turnover and display the amount of liquid assets. Profitability ratios will focus on the company’s asset turnover, profit margin, return on assets, and its return on common stockholders’ equity. The ratio of solvency is based on debt to total assets and times interest earned. These ratios will outline facts and foreseeable trends about the company’s financial position and will reveal what users might be interested in each type of the ratio. Riordan Manufacturing Liquidity Ratios Below are the liquidity ratios, which “measure the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash” (Weygandt, Kimmel, & Kieso, 2009, p. 684). Depending on the industry......

Words: 2285 - Pages: 10

Premium Essay

Gap Analysis

...strategies that will assist an organization in obtaining industry leadership. This particular research paper is based on the Riordan Manufacturing organization created by the University of Phoenix, and establishes a base parameter for what you may look at during the creation of your possess gap analysis. Included is the introduction to the organization, situation analysis, stakeholder perspectives, ethical dilemmas, end-state vision, gap analysis, and the conclusion. Tables and appendixes referred to may not be available in this version of article. Gap Analysis: Riordan Manufacturing Riordan Manufacturing produces plastic parts including plastic beverage containers, automotive parts, aircraft related parts, and appliance related parts (Riordan Manufacturing, n.d.). The company's revenue exceeded $1 billion and is a Fortune 1000 enterprise (Riordan Manufacturing, n.d.). Due to current declines in sales and "uneven profits", Riordan embraced changes that included adopting a customer-relationship management system and a Six Sigma quality approach (Riordan Manufacturing, n.d.). While these changes were developed to combat the developing issues with the business end of the company vision and needs, it unfortunately brought about decreases in production and employee satisfaction. In order to combat the issues related to the necessary changes in company practices, Riordan Manufacturing must build human resource planning that address the needs of the employees and brings them on......

Words: 2263 - Pages: 10

Premium Essay

Riordan Problem Solution and Defense

...Running head: PROBLEM SOLUTION: RIORDAN MANUFACTURING Problem Solution: Riordan Manufacturing University of Phoenix Problem Solution: Riordan Manufacturing The objective of this paper is to exhibit an organized approach using the 9-step Problem-Solving Approach to provide Riordan Manufacturing with legitimate solutions to challenges presented. In addition, the paper identifies opportunities and issues, defines the problem, and develops a set of alternative solutions. In conclusion, the paper recommends the paramount alternatives to implement in order for Riordan Manufacturing to be the global industry leader in plastics production. Situation Analysis Issue and Opportunity Identification Several challenges Riordan Manufacturing must be overcome in order to accomplish the company's organizational goals. One challenge is overcoming employee job dissatisfaction, which declined as part of Riordan's restructuring process. Another challenge is increasing employee retention, which declined due to less than optimal working conditions and minimal personal opportunities to develop and advance. Finally, Riordan Manufacturing needs to overhaul the current flawed reward system into an effective rewards system that aligns the organization's strategy with compensation and incentive packages. Moreover is employee development and training. Riordan has done a small amount of promoting or developing their employees in past years and a key strategic advantage for......

Words: 5754 - Pages: 24

Premium Essay

Mmpa530-Problem Solution: Riordan Manufacturing

...Riordan Problem Solution Running head: PROBLEM SOLUTION: RIORDAN MANUFACTURING Problem Solution: Riordan Manufacturing University of Phoenix Problem Solution: Riordan Manufacturing The objective of this paper is to exhibit an organized approach using the 9-step Problem-Solving Approach to provide Riordan Manufacturing with legitimate solutions to challenges presented. In addition, the paper identifies opportunities and issues, defines the problem, and develops a set of alternative solutions. In conclusion, the paper recommends the paramount alternatives to implement in order for Riordan Manufacturing to be the global industry leader in plastics production. Situation Analysis Issue and Opportunity Identification Several challenges Riordan Manufacturing must be overcome in order to accomplish the company's organizational goals. One challenge is overcoming employee job dissatisfaction, which declined as part of Riordan's restructuring process. Another challenge is increasing employee retention, which declined due to less than optimal working conditions and minimal personal opportunities to develop and advance. Finally, Riordan Manufacturing needs to overhaul the current flawed reward system into an effective rewards system that aligns the organization's strategy with compensation and incentive packages. Moreover is employee development and training. Riordan has done a small amount of promoting or developing their employees in past years and a key strategic......

Words: 5690 - Pages: 23

Premium Essay

Equity Funding Corporation

...appropriate for a professional firm, such as a CPA firm, to choose not to provide professional services to a company or individual requesting such services? Facts Equity Funding Corporation of America was founded in 1960 by four partners, however 2 of then resigned in no time leaving the organization to Stanley Goldblum (President) and Michael Riordan (Chairman of the board). The corporation based its activities in the life insurance industry providing policies and funding programs for investors., and gained a nationwide reputation after going public in 1964. Riordan died in 1969 and Goldblum was appointed as the new chairman of the board, where he designed a company’s employee, Fred Levin as the new executive vice-president. The corporation’s operations, revenues, and earning increased by the hand of the aggressive management policies directed by Goldblum and Levin, being ranked as one of the 10 largest life insurance companies in the US in 1972. The company’s assets totaled $500 million, the pretax earnings reached the $26 million, and their common stocks were one of the most popular recommended stocks in the market. Even though these men had modest backgrounds, the corporation’s success allowed Goldblum and Levin to have wealthy and popular lives. In the earlier 1970s, Goldblum personal fortune topped $30 million. Equity...

Words: 2161 - Pages: 9

Premium Essay

Riordan Generic Benchmarking

...Running head: RIORDAN GENERIC BENCHMARKING Riordan Generic Benchmarking Introduction Riordan Manufacturing is a global plastics producer. The company wants to develop a team compensation plan around its new customer-relationship management system. Riordan wishes to choose the best option to support this plan. Based on the generic benchmarking for issues facing Riordan the following companies have been identified as having some of the same issues: Graybar for team compensation strategies, BHP Copper for gainshairing, American Standard and United Parcel Service for work life policies, Transtec Group and LeasePlan USA for pay-for-performance plans, and Starbucks for part-time employee benefits. Based on the findings this paper presents some best practices to be used based on other companies. Key Course Concept The following companies were benchmarked against issues facing Riordan. These companies are Graybar Electric Company, BHP Copper, American Standard, United Parcel Service, Transtec Group, Starbucks, LeasePlan USA and Verizon Communications. Riordan was benchmarked again Graybar in regards to team compensation strategy. Teams have become a popular way to organize business because they offer companies the flexibility they need to meet the demands of the ever changing business environment (Zobal, 1998). This process should be slow. Riordan had a compensation plan focused only on team performance without considering the growth in......

Words: 3934 - Pages: 16

Premium Essay

Riordan Corporate Compliance Plan

...Riordan Corporate Compliance Plan Riordan Manufacturing Riordan Manufacturing is a global plastics producer with an employee base of 550. The company has projected annual earnings at $46million and is owned by Riordan Industries. There are different segments of the company but the major customers are the automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers, bottlers, and appliance manufacturers. The company has recently undergone some strategic changes in manufacturing and marketing. Some of those recent changes are beginning to effect employee retention numbers. Situation Analysis Riordan Manufacturing has many issues and opportunities laid before them. The company must identify the proper issues in order to make the right adjustments. For the company to prosper, they must first take care of their employees. Issue Identification There are a myriad of issues that exist for Riordan Manufacturing. The company has gone through some recent structural changes because of the ever changing industry. Riordan decided to switch from an individual sales model to a team-based sales model. The issue with the above is that the individuals are used to being compensated solely based on their own performance; now there is apprehension about compensation at the team rate. Another issue is just the pay itself. Some managers are concerned that employees may take proprietary information and share it with competitors after leaving the company.......

Words: 11305 - Pages: 46

Premium Essay

Riordan Probelm Solution

...Problem Solution: Riordan Manufacturing Employee motivation is an issue that does not discriminate (UoP, 2008). “Motivation is the willingness to exert effort in a particular way” (Dreher & Dougherty, 2001, p.28). Two theories can be reviewed when examining motivation. The first is expectancy theory. Expectancy theory holds that people are motivated to behave in ways that produce desired combinations of expected outcomes (Kreitner & Kinicki, 2004). Vroom’s expectancy theory is a mathematical model that looks at motivation. Employee motivation is influenced by expectation. If I get a raise at the end of the year for all my hard work I will work harder next year. If I work hard and don’t get a raise then my effort level will decrease. Porter & Lawler’s extension expectancy model identified people’s valences and expectancies and how effort connected to performance. “Valence refers to the positive or negative value people place on outcomes’ (Kreitner & Kinicki, 2004, p. 300). This theory showed that job satisfaction was directly linked with how employees perceived their reward. Employees will alter their mind-sets only if they see the point of the change and agree with it – at least enough to give it a try (Lawson & Price, 2003). The second theory is equity theory. “Equity theory is a model that explains how people strive for fairness and justice in social exchanges or give-and-take relationships” (Kreitner & Kinicki, 2004, p. 290). Adam’s equity theory of motivation looks at......

Words: 6948 - Pages: 28

Premium Essay

Enron Case Study

...EXECUTIVE SUMMARY This report will analyse the groupthink’s concerns in the collapse of Enron. The collapse of Enron is less than three months, which Enron from a very prosperous company to a bankrupt enterprise. The collapse of Enron is one of the most grievous business failures in United States. This disastrous business failure had causes a large number of employees lost their jobs and retirement savings. Groupthink leads groups to make faulty judgments. Groupthink occurs when a group make wrong decisions as the pressures of group lead to deterioration of “mental efficiency, reality testing, and moral judgment”. There are several symptoms of groupthink. The issues to be resolved for Enron are collective rationalization, stereotypes of out-group, illusion of invulnerability, deceit to increase shareholders’ investments and self-censorship. The causes of the case study are illusion of unanimity, self-appointed mindguards, complicated transactions, belief in inherent morality of the group and direct pressure in dissenters. The solutions to the case study are challenge the norms, discuss with trusted associates, forbid related-party transactions for the senior officers, monitor the power of CEO and assign the role of critical evaluator. When there are symptoms of groupthink, there must be solutions to prevent and solve. TABLE OF CONTENTS EXECUTIVE SUMMARY 1.0 INTRODUCTION 1.1 Purpose of the report 1.2 Company Background 2.0 SUMMARY OF THE CASE STUDY 3...

Words: 4778 - Pages: 20

Free Essay

Term Paper

...Annual report 2013 Looking forward to the future Dear Fellow Stockholder, move ahead of our peers. This unique culture allows us to attract and keep the best leaders and talent because it provides opportunities to grow and take on new challenges. That spirit will remain a cornerstone for us, to the benefit of our viewers, colleagues and investors. Shareholders of 21st Century Fox will see value driven by a commitment to bring consumers across the globe the very best stories in film and television, the greatest moments in sports, unrivaled TV news coverage, and an array of satellite products and services that deliver Rupert Murdoch, Chairman & Chief Executive Officer, 21st Century Fox the world like never before. Our potential to expand our franchises outside the U.S. is limitless, and, with many international markets still in their infancy, largely untapped. It is through this lens – dynamic content, global reach and entrepreneurial culture – that we view both the foundation and future of 21st Century Fox. While I’m not one to look back, the past 12 months have made me especially proud. At the same time, our prospects for the next 12 months and beyond are as bright as ever. The following review of our cable business, sports programming, broadcast network, film and television assets and satellite services is a snapshot of the strong foundation we have built over the years, which will serve us well as we focus on the opportunities that lie ahead. Business Segment......

Words: 89756 - Pages: 360

Free Essay

Job Satisfaction Among Business Education Students

...CHAPTER ONE Introduction 1.1 Background of the Study For the last few decades job satisfaction has been one of the most popular interests among scientists, researchers and practitioners. According to Spector job satisfaction is the most frequently studied variable in organization research. Job satisfaction was proved too be an important construct in emotional and psychological employees’ well being. It is a significant element related to good organizational functioning as well. Although, the phenomenon of job satisfaction has been broadly researched, still there are several problematic areas. First of all, the concept of job satisfaction has been described in various ways by a number of researchers. Lawler states that “overall job satisfaction is determined by the difference between all those things a person feels he should received from his job and all those things he actually does receive”. Locke defines job satisfaction as “the pleasurable emotional state resulting from the appraisal of one’s job as achieving or facilitating the achievement of one’s job values. Spector describes job satisfaction as “the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs”. Apart of those few definitions indicated above, there are many others that aim to explain the concept of the satisfaction. The lack of consensus which appears in defining the concept may lead to misunderstanding among researchers and research participants and may influence the......

Words: 12471 - Pages: 50

Premium Essay

Something

...Innovative Business Practices Innovative Business Practices: Prevailing a Turbulent Era Edited by Demetris Vrontis and Alkis Thrassou Innovative Business Practices: Prevailing a Turbulent Era, Edited by Demetris Vrontis and Alkis Thrassou This book first published 2013 Cambridge Scholars Publishing 12 Back Chapman Street, Newcastle upon Tyne, NE6 2XX, UK British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Copyright © 2013 by Demetris Vrontis and Alkis Thrassou and contributors All rights for this book reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. ISBN (10): 1-4438-4604-X, ISBN (13): 978-1-4438-4604-2 TABLE OF CONTENTS Chapter One ................................................................................................. 1 Knowledge Hybridization: An Innovative Business Practices to Overcome the Limits of the Top-Down Transfers within a Multinational Corporation Hela Chebbi, Dorra Yahiaoui, Demetris Vrontis and Alkis Thrassou Chapter Two .............................................................................................. 17 Rethinking Talent Management in Organizations: Towards a Boundary-less Model Carrie Foster, Neil Moore and Peter Stokes Chapter Three .......

Words: 128975 - Pages: 516