Buenavista Plywood Corporation

Buenavista plyboard Corporation The riddle The problem confronting Mr. Antonio Garcia, the Plant Superintendent of Buenavista Plywood Corporation is how to deal with the absentee order of the employees from Bohol such that the production of the bot some(prenominal) ordain operate at capacity, with adequate men and the interests of the company and employees be served. Objectives More specifically, the problem resolves itself into the future(a) objectives which Mr. Garcia has to achieve in the course of action he has to take 1. To maintain a stable and true(p) workforce 2.To protect the companys reputation by avoiding resistance with formal essence hosts 3. To channelize production problems and costs 4. To meet the rated capacity of the engraft 5. To safeguard the long-run profitability and stableness of Buenavista Plywood Corporation. Situational Analysis The Buenavista Plywood Corporation was organized in Cagayan de Oro City in 1950 by the Santiago Family. put on Jose S antiago, the present head of the family, was well qualified to carry the traditions of this prominent family. The Santiagos have been involved in regime in nearby Bohol, the ancestral home.They had been pioneering industrialists in the plywood business. Don Jose had been an early advocate of local bear on of lumber as opposed to the shipping of log abroad. VISTAWOOD, the trademark chosen for their plywood, was one of the first exportation plywood production 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 fag out arrangement gained the allegiance of a large group of workers to establish a union at VISTAWOOD.Over the period of some(prenominal)(prenominal) months, the union activists who were assigned to the logging concessions left the company at their own initiative. These events marked the end of any organized activity at VISTAWOOD. As a matter of general policy, an xiety preferred to ingest people 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 election campaigns in Bohol. Late in 1967, VISTAWOOD was facing serious production problems.Rated capacity and management profit goals had not been attained for several years. Fierce competition in the export market and lessen selling prices, coupled with new duties being levied by importing countries had aggravated the situation. It was apparent to management that the totally(prenominal) source of improvement would have to be the production function. Costs of operating the plant had been steadily salary increase without no accompanying rise in production tidy sum. Mr. Antonio Garcia was brought to VISTAWOOD Superintendent in the hope that he could turn some improvements in the plywood pl ant.Discovering the absentee rate of the plant, Mr. Garcia began to examine this and other related problems at VISTAWOOD. It became increasingly put across that (1) production was low and highly erratic and (2) one of the main causes of this gloomy situation was the unstable and undependable workforce. The absentee grade fluctuated between 50% during Monday and Saturday nights and 30% during the rest of the week. Daily production was so adversely unnatural by this shifting workforce, that Sundays 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 Given the problematic mannequin on situation described, Mr. Garcia now had to decide what to do with the problem on the trade workers from Bohol. The fluctuating absentee rates of these employees has resulted to serious p roblems 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 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 putting the company in unskilled public image ore reputation. Retaining the employees from Bohol will protect the companys reputation but the absentee rates of these employees relate production costs and volu me. And if not addressed will result to financial pervert for the company. Mr. Garcia is therefore 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 consecrate 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. 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 dissociate political expediency from management decisions. 3. Mr. Garcia could talk to th e workforce from Bohol to avoid establishing 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.