Warehouse efficiency has improved by around 14%, pick order times have decreased by about 32%, and staffing costs have declined by some 8%. Total annual savings of approximately $17 million have been achieved, and sales days outstanding have been reduced by 14%. The company runs smoother the employees are happier the end result is more efficient. (IBM, 2006) To show this is a wining strategy for motivation IBM came together for Plastipak and so will the outcomes of the entire situation.
Plastipak use a software driven organization management program to help keep an overall look at the cross function of the entire company as a department to department unit. Some of the issues that are compared and contrasted that apply to the course concepts are components of benefits plans. Employee preferences are one aspect that Riordan found the answers to in the survey.
The benefits that top the list of employee references should be evaluated in relation to current and future costs. Because future cost estimates may be difficult to project, it is imperative that benefit administrators reduce uncertainty. (Milkovitch & Newman, 2004)
Cisco Systems Inc
As many high-tech companies that were heavily affected by the fall-out of dot.com, Cisco had to layoff eight thousand employees. The remaining employees were very distressed because there were still rumors that layoffs were going on. During many following years, the annual salary increase was one of the main issues to be complained by employees. In addition, the pay system did not satisfy the employees who were hired prior to the dot.com period. The morale was going down. The productivity was also decreased. Cisco’s leadership team decided to do something to bring the company back to the right track.
Cisco does the employee survey quite often because employees’ views are “of great importance to Cisco.” Employees’ feedbacks are considered the company’s best-informed critics, and reflect their view supports to the company’s objectives of recruiting and retaining the best talent. This contributes to the employees’ motivation because they know that they have some kind of “ownership.”
Cisco creates “a morale agile and productive workforce that responds to the needs of the customers and a changing market” (Cisco, 2005). Cisco employees are encouraged to plan and manage their own training and career development, which reflects their needs of skill enrichment and career aspirations, through a companywide initiative called Cisco University. This initiative provides all career development activities, such as training/coaching/mentoring, job opportunities, and so on. Employees who want to transfer to other departments are also provided assistance, guidance and transition services, including individualized career coaching, job search seminars, etc…
Cisco promotes innovation and recognizes that the most value assets of the corporation is the workforce. Compensation packages include a competitive base salary, stock options, and other basic benefits in health insurance (medical, dental, vision, long-term disability), 401k plan matching, paid holidays and personal time off (PTO), and military duty leave. In addition, Cisco also has Work/Life programs for the employees, Childcare services, Employee Discount programs and Reward/Recognition programs. In 2005, Cisco was ranked fourth in FORTUNE magazine’s “100 Best Large Companies to Work for in America” list. (Cisco, 2005)
From Cisco System Inc and Lockheed Martin Corporation examples, Riordan Manufacturing could learn from Cisco to improve the compensation to make things more competitive to retain their employees. Riordan Manufacturing could also provide a good training development program for employees to improve their employees’ skills and give them the opportunities to share their knowledge with the company’s focus point of training, which is similar to Cisco University.
Plastipak, (2006, January 8, 2006). Motivation. Retrieved November 20, 2007, from
IBM, (2006, January 23, 2006). Plastipak. Retrieved November 21, 2007, from
Milkovitch & Newman, (2004). Compensation (8th ed.). New York: McGraw-Hill.
Cisco Systems, Inc. (2005). Cisco corporate citizenship report. Retrieved November 24, 2007, from