'Buenavista Plywood Corporation\r'

'Buenavista plywood Corporation The Problem The problem confronting Mr. Antonio Garcia, the name Superintendent of Buenavista Plywood Corporation is how to deal with the absentee rate of the employees from Bohol such(prenominal) that the product of the coiffure will belong at capacity, with comely men and the interests of the community and employees be served. Objectives More specifically, the problem resolves itself into the fol ruggeding objectives which Mr. Garcia has to achieve in the course of action he has to take: 1. To adjudge a durable and reliable workforce; 2.To shelter the bon ton’s composition by avoiding face-off with formal coalition groups; 3. To address deed problems and cost; 4. To meet the rated capacity of the plant; 5. To safeguard the long make headwayability and stability of Buenavista Plywood Corporation. Situational Analysis The Buenavista Plywood Corporation was organized in Cagayan de Oro City in 1950 by the Santiago Family. Don Jos e Santiago, the present nous of the family, was well qualified to carry the traditions of this prominent family. The Santiagos pass water been involved in politics in nearby Bohol, the ancestral home.They had been pioneering industrialists in the plywood business. Don Jose had been an primeval advocate of local processing of lumber as opposed to the shipping of log abroad. VISTAWOOD, the trademark chosen for their plywood, was one of the premier export plywood production in the Philippines. Late in the fall of 1960, at a time when the plant was in operation(p) at capacity, functional three shifts a day, some representatives of a national labor organization gained the allegiance of a large group of workers to establish a marriage ceremony at VISTAWOOD.Over the period of several months, the union activists who were assign to the logging concessions left the beau monde at their knowledge initiative. These purgets marked the end of any organized practise at VISTAWOOD. As a matter of prevalent policy, management preferred to hire masses from Bohol and even tolerate some irregularities due to this peculiar working arrangement, than to risk another confrontation with formal union organizations. In fact, Don Jose soon began to rely on political leverage this group of workers afforded him in his choice campaigns in Bohol. Late in 1967, VISTAWOOD was facing unplayful production problems.Rated capacity and management profit goals had not been attained for several years. Fierce competition in the export market and decreasing selling prices, joined with new duties being levied by importing countries had exacerbate the slur. It was apparent to management that the only source of return would project to be the production function. Costs of operating the plant had been steadily rising without no sequential rise in production volume. Mr. Antonio Garcia was brought to VISTAWOOD Superintendent in the hope that he could bring some improvements in the plywood plant.Discovering the absentee rate of the plant, Mr. Garcia began to examine this and other relate problems at VISTAWOOD. It became increasingly clear that: (1) production was pathetic and highly erratic and (2) one of the main causes of this sour situation was the unstable and unreliable workforce. The absentee rates fluctuated amid 50% during Monday and Saturday nights and 30% during the rest of the week. Daily production was so adversely affected by this fracture workforce, that Sunold age had to be regarded as regular work days just with higher labor be. Mr.Garcia was convinced that the plant could be run on a six-day agenda and meets the rated capacity if an adequate workforce could be well-kept in the ratio of 3:2. Decision model Constraints Given the problematic framework on situation described, Mr. Garcia now had to decide what to do with the problem on the imported workers from Bohol. The fluctuating absentee rates of these employees has resulted to serious proble ms such as the unstable, unreliable and inadequate workforce futile to meet the rated capacity at the plant and resulted to low and highly erratic roduction. Rated capacity and management profit goals had not been attained for several years. Aside from the uncut competition in the export market, decreasing selling prices, and rising production costs, imported workers from Bohol have created great problems. Increasing the production volume through having an adequate stable workforce is the only solution to the problems confront by the company. And that would mean to fire those workers from Bohol who have absentee problems. These people create greater inefficiencies for the company.However, this will risk the company to face formal union organizations. And these would mean put the company in bad public count on ore reputation. Retaining the employees from Bohol will protect the company’s reputation but the absentee rates of these employees affect production costs and volum e. And if not addressed will result to fiscal ruin for the company. Mr. Garcia is therefore caught in a seemingly difficult dilemma and has to formulate a finding which would both safeguard stability and profitability at the company and at the same time, protect the reputation of the company.DECISION ALTERNATIVES The succeeding(a) choices are open to Mr. Garcia: 1. Fine the employees from Bohol who have absentee problems but spell ruin on the company’s reputation; or 2. Retain the employees from Bohol but creates problems on the production costs and volume and finally spell financial ruin to the company. RECOMMENDATION The first alternative to fine employees from Bohol is preferable given the following considerations: 1.It will decrease absentee rates of employees and having a stable and reliable workforce will result in meeting the rated capacity and volume of the plant. 2. It will break political expediency from management decisions. 3. Mr. Garcia could talk to the wor kforce from Bohol to avoid establishing a union at VISTAWOOD. ratiocination Firing the workers from Bohol will address production problems of the company and insure the long-run stability and profitability of VISTAWOOD. much(prenominal) a course of action, therefore, would achieve all the objectives frame out earlier in the present dilemma.\r\n'