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The rigid divisions within the company meant few discussions apart from the works
management committee which involved the workforce directly. You know that your
competitors are steadily introducing more and more employee participation to improve
quality and involvement of the workforce. There were no consistent standards concerning
discipline in Burke Engineering.
Absenteeism has risen over the last 10 years, mostly claimed as sickness. This was a
common problem throughout the area. Mondays were the worst, with absence during the
last year running at over 8 per cent, with an average of 4 per cent of the working week.
This was considerably in excess of the regional average approaching 2 per cent. The
company had also seen the number of appeals steadily increase over the last 5 years,
from 22 to 61. The most marked increases had been in disputes over wages, grading,
(contributing over 50 per cent), time keeping and sick pay. In general you are aware that
the company is suffering from increasing fragmentation.
Different managers treat their staff in very different ways, some insist on strict time
keeping, whereas others are far more relaxed. Attitudes towards sickness and other
absence requirements also varies enormously. You are concerned that the company has
no common values whatsoever.
Finances
The Finance Department has prepared a set of accounts comparing last year and what is
likely to be the position in the current financial year. These are included in the balance
sheet in Table 13 in Appendix A. You are particularly worried about some of the trends that
the accounts show, with the company in an increasingly precarious position. However, the
freehold site underpins the prospects for the company as the valuation in the accounts is
both out of date, and based purely on the assumption that the site could only be used for
manufacturing purposes. You are fully aware that land in the area is increasingly being
turned over to retail uses and other forms of distribution.
Should planning permission be obtainable, and this on first inspection does not appear to
be a major problem, the company is in a stronger position than might otherwise appear to
be the case.
Action
How should you as J Franklin approach the problem of deciding on the future of Burke
Engineering? It is your responsibility to plan for the future. Should Burke stay in the sectors
it is currently in? Should it concentrate its activities? How quickly should it change? What
are the most important factors in deciding whether such a proposed change is realistic or
not?
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