... Change Management The company was founded by Dr. Riordan, a professor of chemistry he started Riordan plastics, Inc in 1991. Riordan Manufacturing is a global plastics, medical supplies, stents, automotive parts, appliance manufacture's parts, airplane parts, and beverage containers manufacturer. Riordan has 500 employees with a projected annual earnings of $46 million and a fortune of 1000 enterprises with revenues of $1 billion. Riordan Manufacturing has 4 worldwide locations Albany Georgia, Pontiac Michigan, Hangzhou China, and the company headquarters in San Jose. In the following paragraphs we will be describing formal and informal power structures, the effective organization structures, effects on employee behavior, the characteristics of employee behavior, potential sources, and a evaluation of Riordan Manufacturing. Formal and Informal Power Structures Riordan Manufacturing is formed by a formal and informal power structures. Riordan, formal power structure was established in the corporation to recognized the organizational chart and legitimate power which correspond to the formal authority that controls organizational resources in the corporation. Riordan informal power is divided into individual departments, each department is led and managed by an employee who has more knowledge than others in that department. The power and political structure of Riordan Manufacturing influence their employees behavior by collaborating and involving certain...
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...A vital asset in the world today is the organization structure main purpose of job tasks and coordination. Riordan Manufacturing decided to make changes to the company’s customer management system and has left the task up to individual employees to be the consultants. The company has also decided to form a formal system to manage their customer data. By creating this organizational structure managers will control and delegate assignments to employees starting from the top level down. Changing the informal organizational structure that created more than one boss will cease to cause huge confusion among employees. The most effective organizational structure for Riordan Manufacturing to focus on a customer management system would be the functional structure known as the chain of command. The functional structure starts from the top level executives and extends to the lowest echelon with clear understanding on who reports to whom, and only reporting to one person. Then provisional on the level of deciding power Riordan will set rules on the power limits starting from the bottom to the top for chain of command implementation. Organizational planned change can reach company goals rapidly with the managers identifying new outcomes and objectives. Managers will have a group of leaders to oversee the change and gather the progress and view if any recommended changes. Employee’s emotions will be taking into consideration when executing any new implementations necessary to meet the company’s...
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...Change Management and Communication Plan Team Names MGT/311 Date Instructor Formal and Informal Power Structures Riordan Manufacturing’s current formal structure consists of reward power and legitimate power. Establishing hierarchy and job categories through specific job codes, descriptions, and differing pay rates has found structure within the organization. Riordan’s Chief Executive Officer and Chief Operating Officer exert legitimate power to maintain employee direction. Preserving guidance and leadership with authority to oversee employee performance is crucial while implementing legitimate power. Advocating for formal power through reward power allows management to motivate and create passion for employees. Creating motivation through formal power Riordan uses motivation by legitimate power and reward power, and uses informal power. Informal power does not come from positions within the company but still has influence on employees. For example, when the expert engineers talk other employees listen because they have proven skills and knowledge. Most Appropriate and Effective Organizational Structures Riordan Manufacturing does not have a formal customer information system. The customer information is left up to employees. This practice needs to change so employees can access any customer’s information. The company will open a new department dedicated to the customers. It will develop and maintain a customer database. Employees will compile the information they...
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...management and communication plan for Riordan Manufacturing, an organization that has identified the need to implement a formal customer information system to be used by all employees. To create these plans, Team C reviewed Riordan’s intranet site to understand better different aspects of the organization. Discussed below under the change management plan are the current power structures identified in the organization, structures necessary to implement change, characteristics of the company culture, and the effect of these on behavior. In addition, potential sources of change resistance, implementation strategies, and measurements of success will also be reviewed. With the communication plan, appropriate communication channels, potential barriers, and strategies to overcome those challenges are identified. An e-mail to every employee will detail the changes to the customer information system and the areas that will be affected. The e-mail will explain why the change is needed and the urgency for its implementation. Change Management Plan Formal and Informal Power Structures Riordan Manufacturing is made up of formal and informal power structures. The formal power structure prevalent in the organization, and identifiable through its organizational chart, is legitimate power, which “represents the formal authority to control and use organizational resources based on structural position in the organization” (Robbins & Judge, 2011. p. 422). An informal power structure in place is expert...
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...Management and Communication Plan Introduction Riordan Manufacturing has requested team alpha as consultants to implement a single customer managing system. Team alpha must create a management plan, since the company does not have a formal management plan in place. Secondly, the team will devise a communication plan for Riordan Manufacturing. The management and communication plan will include outline details of each system. A conclusion at the end of the paper will explain why this would an optimum plan for Riordan Manufacturing. Change Management Plan Since Riordan Manufacturing does not have a formal customer managing system for their employees, Team alpha must first create a formal power structure that informally empowers all employees effectively. The management plan will examine the business culture, employee’s behavior, and employee’s resistance. Backup strategy implements are included at the 12-month period if the primary power structure fails. First, team alpha will discuss their primary power structure. Current Formal and Informal Power Structures The current power structure at Riordan Manufacturing based on the principle of using controlling force to motivate their employees. The company uses threatening tactics with negative write-ups or even termination. This type of formal power structure is a coercive power structure. The negative formal power structure creates low morale and job satisfaction, which is an informal power structure (Robbins, 2013). Low job satisfaction...
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...Change Management and Communication Plan Introduction Change Management Plan There are both formal and informal power structures within Riordan Manufacturing. Power structures consist of the President and CEO, Dr. Riordan. Followed by the Chief Operating Officer (COO), which represent the top executives of Riordan Manufacturing. “Informal power structure refers to leaders, who are not necessarily in management, but are able to lead others to achieve goals or accomplish certain tasks.” (Daveron, 2013) These informal power structures refer to the managers that lead their groups and influence on their employees to achieve their goals. Improvements are always needed even though Riordan Manufacturing already has a successful foundation. Cross-functional teams would be a step to making improvements within the organization, which will help provide stronger teams. “Allows departments to communicate effectively, develop, solve problems, create, and sell the company products effectively through the diversity of the company’s employees.” (Robbins & Judge, 2013) Departmentalization would be the structure to use where you can group certain activities into departments. There could be some issues that arise from using departmentalization because each individual or employee has something special to offer that the company should be aware of. Culture changes within an organization can be seen as negative situation for employees, and can result in bad performances or behavior. When being...
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...going to discuss Riordan Manufacturing’s decision to make a change to the company’s customer management system. The company does not currently have any formal system for managing their customer information and has traditionally left this up to individual employees. This new system will require all employees to use one customer management system. In our report we are going to discuss the following; the current formal and informal power structures in the organization, the most appropriate and effective organizational structures for Riordan Manufacturing that will help them accomplish their planned changes, the potential effects of this selected structure on employee behavior, the characteristics of the company’s culture, and the potential sources of resistance to change. Once the previous steps have been identified we will recommend a strategy to implement the changes over the next 12 months. From there we will evaluate the success or failure of the planned change. As with any new change, there may be some resistance from employees, so we will also develop strategies to help Riordan Manufacturing manage any resistance to this new customer management system. Change Management Plan Riordan Manufacturing utilizes both formal and informal power structures in various aspects of the company’s management. Formal power structures are used to organize leaders in the executive management team and other divisions of the company. The use of formal power structures...
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...Change Management and Communication Plan Damon , Kesha , MGT/311 Change Management and Communication Plan Riordan Manufacturing has a prevailing structure and an organization based on formal and informal power. The obvious formal power structure identified through its organizational chart, is legitimate power. Legitimate power “represents the formal authority to control and use organizational resources based on structural position in the organization” (Judge & Robbins, 2014. p.414). The vast division of the departments and managers within the organization, leads the team to believe that the informal power structure being utilized is, expert power. The only downfall from using expert power, is the creation of a disconnection between the front line employees and their executive officers. Obvious within the organization is the power and political structure and its effect on employee behavior. Communication amongst several levels of management entails employees to leverage their power and political influence within the organization so that the desired goals and outcomes are reached. Riordan Manufacturing is no small town plastics manufacturer, with over $1 billion in sales and well over 550 employees, this organization is here to stay. Because Riordan would like to standardize its process across all levels of management, the implementation of the bureaucratic structure will best outfit them and help them accomplish their planned changes. According to Judge &...
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...Power Structures The organizational charts reveal that Riordan Manufacturing operates on a departmentalization structure. Grouping of positions by departments and job titles is considered as a division of specialization. The chart also details the lines of authority and responsibility and outlined with a formal power structure system. Employees can easily recognize formal power within the company because of job roles, titles, and interdepartmental relationships from top to bottom. Formal power “is based on an individual’s position in an organization, and it can come from the ability to coerce or reward, or from formal authority” (Robbins & Judge, 2011, p. 421). Riordan has established formal top to bottom communication channels. For example, the vice president of sales makes decisions concerning revenue. Informal communication can leave employees frustrated as decision-making power can come from any employee possibly leading to inaccurate information. The current information at Riordan is consistent with legitimate political behavior, as Riordan’s normal politics is figuring out what lies within the formal and informal rules. Management is concerned with political behavior in the company and encourages open communication that goes along with their power tactics. Because political power is the ability to control the behavior of others to attain the objective of the organization, Riordan uses the reward system as the means of recognizing and reconciling...
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...Identify characteristics of the company’s culture. What are the potential influences of the corporate culture on employee behavior? Employee behavior affects their performance and their response to their work, supervisors, and customers. The organizational culture at Riordan incorporates fairness, trust, dedication, innovation and teamwork, disability accommodations, performance evaluations and employee benefits. Riordan is an organization that strives to provide solutions for their customers’ needs by exceeding their expectations. Riordan is considered a superior company but, like other companies, they must learn when and how to implement change effectively 9. Select the most appropriate channels to communicate the change to the employees, and explain why you selected these channels. Communication Plan Communications is vital when trying to raise the level of understanding in Riordan Manufacturing during implementation of a change. To deliver information regarding the change effectively it is essential to use multiple platforms or media resources to communicate the same message, and determine who will communicate the Riordan Manufacturing need for change. President and CEO, Dr. Michael Riordan, is the most effective communicator- employees need to hear about upcoming changes from their direct supervisor. One of the biggest concerns will be developing written messages that will define organizational values and principles, and set the expectation for the employees...
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...Communication Plan Riordan Manufacturing is a formal power structure that also uses an organizational structure; the president is also the Chief Executive Officer (CEO). In this company there needs to be improvement to the departments. There is an informal structure for management and data recording, as the employees are the recorders of the data and other information like maintenance issues. An organizational chart will be of much help at Riordan, this will help employees get motivated and help train and learn policies more quickly. This structure will also help keep the departments more organized. The resistance of the changes will make some uncomfortable, and even bring on the fears of the unknown but with the right communication these fears can be eliminated. Over 12 months there will be testing of the new system with the steps of, validating, updating, installation, set-up, education, training, and evaluation. E-mail and face-to-face communication will be the key in the end. First e-mails for meeting and the face-to-face meetings for the training and education as well as the initial information and to keep employees u- to-date with changes. The barriers that this communication can have are no email or employees being out, due to sick leave or vacation. In the end there will be surveys given for the feedback of the new system that will allow clarification of issues and to identify problems that may arise. The organizational structure at Riordan Manufacturing uses a formal organizational...
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...Change Management Plan Change Management and Communication Plan Riordan Manufacturing does not currently have any formal management system for managing their customer information. Informally this system has been left up to each individual employee. However, the new formal system created will require employees to use one customer management system. Our aim is to apply a more formal management structure to help achieve company goals and deliver better value to the customer as well as assisting in the success of Riordan Manufacturing. With a formal system the managers will be allowed to monitor the different work assignments passed on to the various employees starting from the top to the bottom. We believe the most appropriate structure would be the chain of command management system. Illustration I With the decision power from top to bottom employees on the same level will have the same decision-making power as the other employees on that same level. Before the informal structure was not working for the company because there was not one certain employee in charge. This made it easy to place blame on others, and there was no particular rush on most projects. With the change of command in place employees will have someone to go to when he or she have questions or problems. According to (Kelchner, 2012), “Companies without a clear chain of command can create an atmosphere of uncertainty and chaos, which affects the morale of all workers in the organization...
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...Running head: CHANGE MANAGEMENT AND COMMUNICATION PLAN Change Management and Communication Plan Organizational Development MGT/311 January 11, 2012 Change Management and Communication Plan Riordan Manufacturing has decided to implement a formal customer management system, which will be used company wide. Our job as consultants is to assist Riordan in planning and implementing the change so that it goes as smoothly as possible. Current Formal and Informal Structure Riordan Manufacturing functions with a bureaucratic structure and a system based on formal power. According to the organizational charts, the organization is departmentalized into functional areas based on the scope of work. The organization also breaks down jobs and departments based-off of specialization. Each department or division has a VP that oversees the department and reports to the chief executive officer. Each VP has managers who manage a number of employees. This system allows effective and strategic management throughout the organization. This also allows decisions to be disseminated throughout the organization with ease. The system is very common and popular throughout organizations today. Front-line employees report to managers, managers report to directors or regional managers, directors report to division VP’s, and VP’s report to the chief executive officer. This system allows systematic communication. The power and political structure of the organization may frustrate employees...
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...Riordan Manufacturing Management Change Plan MGT 301 Section I: Change Management Plan Identify the current formal and informal power structures in the organization. How might the power and political structure of the organization affect employee behavior? The formal power structure in the organization consists of the top management staff run by the President & CEO, followed by the Executive Assistant, Senior VP-R&D, and the Chief Operating Officer. The informal power structures would be the employee work force and their ability to generate profits for the company. The power and political organizational structure might affect employee behavior on how strict the company is on its standards and regulations. When the employee is supervised and reviewed on the performance then the employee might feel the responsibility to keep up and do a good work in order to keep the job and generate good reviews. According to Robbins and Judge (2013) organizational structure is defined as how a job tasks which is formally divided, grouped and coordinated. There are six key elements; work specialization, departmentalization, chain of command, span of control, centralization, decentralization, and formalization. Riordan Manufacturing operation is based on the effective bureaucratic structure this standardized processes effective in the ability for all 500 employees to be synchronized at the same level regardless of the hierarchy. The manufacturing plants are divided in three different specific...
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...Change Management and Communication Plan MGT/311 Change Management and Communication Plan In order to support Riordan Manufacturing in their efforts to make changes to the company customer management system, this proposal will serve the purpose of converting it into a formal system for managing customer information. This new system will serve as a singular method used by all employees’. Management Plan After reviewing the Riordan Manufacturing company, the organizational design can be compared to a bureaucracy as well as a matrix structure. Riordan Manufacturing has several vice-presidents as well as directors for all their sections whom ultimately report to the President and CEO Dr. Michael Riordan. Like the military, this company also has a structured chain of command. This depends on standardized work processes for coordination and control. Each department has a specialized division which works under a manager whom reports to a vice president of that section. It has been said that “Power corrupts, and absolute power corrupts absolutely,” too much of anything can be negative and power is no exception to the rule. With the changes in managing customer information, leadership must start from the top all the way down to bottom if this new system is to be successful. Political behavior is important when it comes to change, this power can seriously hinder or help when it comes to new policies in a work environment. With change may come some resistance from some employees’...
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