Buenavista Plywood Corporation

Buenavista Plywood Corporation The Problem The problem confronting Mr. Antonio Garcia, the define Superintendent of Buenavista Plywood Corporation is how to deal with the absentee rates of the employees from Bohol such that the ware of the make result operate at might, with comme il faut workforce and the interests of the community and employees be served. Objectives More specifically, the problem resolves itself into the following objectives which Mr. Garcia has to achieve in the phase of action he has to take 1. To maintain a stable and certain workforce 2.To protect the guilds reputation by avoiding resistance with formal centre free radicals 3. To address turnout problems and be 4. To meet the rated susceptibility of the dress 5. To safeguard the long- officiate profitability and stability of Buenavista Plywood Corporation. Situational outline The Buenavista Plywood Corporation was organized in Cagayan de Oro City in 1950 by the Santiago Family. Don Jose Santi ago, the present head of the family, was well qualified to station the traditions of this prominent family. The Santiagos have been involved in politics in near Bohol, the ancestral home.They had been pioneering industrialists in the plywood business. Don Jose had been an early advocate of topical anesthetic processing of lumber as opposed to the shipping of log abroad. VISTAWOOD, the mark chosen for their plywood, was one of the first export plywood toil in the Philippines. Late in the fall of 1960, at a time when the plant was operating at capacity, working three shifts a day, some representatives of a national labor organization gained the allegiance of a large group of workers to establish a union at VISTAWOOD.Over the period of several months, the union activists who were assigned to the logging concessions left the community at their own initiative. These reddents tag the end of any organized activity at VISTAWOOD. As a matter of general policy, prudence preferred to hire people from Bohol and even tolerate some irregularities due to this peculiar working arrangement, than to essay some other confrontation with formal union organizations. In fact, Don Jose soon began to believe on political leverage this group of workers afforded him in his election campaigns in Bohol. Late in 1967, VISTAWOOD was facing serious product problems.Rated capacity and caution profit goals had not been attained for several years. Fierce tilt in the export market and decreasing selling prices, coupled with new duties world levied by importing countries had aggravated the situation. It was apparent to management that the only parentage of improvement would have to be the production function. Costs of operating the plant had been steadily rising without no ac keep confederacying 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 related problems at VISTAWOOD. It became more and more clear that (1) production was low and highly erratic and (2) one of the main causes of this gloomy situation was the unstable and unreliable workforce. The absentee rates fluctuated between 50% during Monday and Saturday nights and 30% during the rest of the week. Daily production was so adversely touch on by this shifting workforce, that Sunold age had to be regarded as regular work days but with higher labor costs. Mr.Garcia was convinced that the plant could be run on a six-day schedule and meets the rated capacity if an adequate workforce could be maintained in the ratio of 32. Decision Framework Constraints presumptuousness the problematic framework on situation described, Mr. Garcia now had to decide what to do with the problem on the import workers from Bohol. The fluctuating absentee rates of these employees has resulted to serious problems such as the unstable , unreliable and inadequate workforce unable 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 fierce competition in the export market, decreasing selling prices, and rising production costs, imported workers from Bohol have created greater problems. Increasing the production volume through having an adequate stable workforce is the only solution to the problems faced by the company. And that would incriminate to fire those workers from Bohol who have absentee problems. These people create greater inefficiencies for the company.However, this leave behind risk the company to face formal union organizations. And these would mean putting the company in bad public image ore reputation. Retaining the employees from Bohol will protect the companys reputation but the absentee rates of these employees affect production costs and volume. And if not addr essed will result to financial ruin for the company. Mr. Garcia is whence caught in a seemingly difficult dilemma and has to formulate a decision which would both safeguard stability and profitability at the company and at the same time, protect the reputation of the company.DECISION ALTERNATIVES The following choices are have to Mr. Garcia 1. Fine the employees from Bohol who have absentee problems but spell ruin on the companys reputation or 2. Retain the employees from Bohol but creates problems on the production costs and volume and eventually spell financial ruin to the company. pass 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 separate political expediency from management decisions. 3. Mr. Garcia could talk to the workforce from Bohol to avoid establishi ng a union at VISTAWOOD. CONCLUSION Firing the workers from Bohol will address production problems of the company and insure the long-run stability and profitability of VISTAWOOD. Such a course of action, therefore, would achieve all the objectives set out earlier in the present dilemma.