Analysis of Human Resource System at Riordan

Riordan Manufacturing is a plastics manufacturing company with operations in the United States and in China. Riordan employs around 500 employees. Currently, the tracking of employees is done on different systems throughout the company. The tracking system is severely in need of automation and consolidation of employee information. To retain employee satisfaction and stay competitive with other companies, it is necessary for Riordan to update or implement a new system to be more effective. Right now the company’s human resources department does not meet these needs.

The company’s HRIS system was installed in 1992. It is a part of the financial systems package and keeps track of the following employee information:
• Personal information (such as name, address, marital status, birth date, etc.)
• Pay rate
• Personal exemptions for tax purposes
• Hire date
• Seniority date (which is sometimes different than the hire date)
• Organizational information (department for budget purposes, manager’s name, etc.)
• Vacation hours (for non-exempt employees)
Changes to this information are submitted in writing by the employee’s manager and are entered into the system by the payroll clerk. Training and development records are kept in an Excel worksheet by the training and development specialist. Each recruiter maintains applicant information for open positions. Résumés are filed in a central storage area, and an Excel spreadsheet is used to track the status of applicants. Workers’ compensation is managed by a third-party provider, which keeps its own records. Employee files are kept by individual managers; there is no central employee file area. Managers are also responsible for tracking FMLA absences and any requests for accommodation under the ADA. The compensation manager keeps an Excel spreadsheet with the results of job analyses, salary surveys and individual compensation decisions. Employee relations specialists track information about complaints, grievances, harassment complaints, etc. in locked files in their offices (Riordan Human Resources, 2004).

The scope of this project is either to handle all the above HR activities with a single, commercially-available application, develop an application that can handle those activities competently, or outsource the responsibilities. Whichever solution is chosen, the system requirements and functional requirements must also be met.

After reviewing the annual employee satisfaction survey results job satisfaction has decreased significantly. Employees were also asked about the working conditions and I found from the survey the average for this was the employee agreed. Next, employees were asked about personal opportunity for transfer, promotions, job training and other opportunities at Riordan. This is another area where the employees score has gone down significantly. In the Cooperation area of the survey it questions the employees overall how they relate to other employees they work with. This has overall remained the same. Compensation and Benefits section of the survey has shown the most significant decline over the years. Employees are feeling they are underpaid for the work they do and would leave the company if a job opportunity arose paying 10% more they would leave Riordan. Employees are also feeling if they do a good job and work hard they will be reward fairly is not true. Communication in the company has basically remain the same, employees are overall agree with questions they were asked. Management satisfaction at Riordan has slightly decrease over the three years and over the last quarter complaints regarding unfair discipline and inadequate training are becoming increasingly high (Riordan Manufacturing, 2003/2004). As Yvonne McMillan stated in a memo to Dale Edgel, where she has put together a summary of employee grievances, they are seeing an increasing amount of complaints directly contributing to the employee satisfaction issues. Ms. McMillan also states supervisor training is needed as many of the issues seem to be directly related to supervisory misconduct (Yvonne McMillan, personal communication, May 1, 2004).