Question
Dan resolved the inventory and layout concerns with the help of a consultant whom his banker had suggested. With the expansion of the plant, Dan
Dan resolved the inventory and layout concerns with the help of a consultant whom his banker had suggested. With the expansion of the plant, Dan was able to meet demand for orders of the Ladder Helper and some additional products. Sales were increasing, and the problems with finances that had caused concern earlier seemed to be less troublesome. However, partway through year two an additional problem began to surface. It involved his personnel. With increased demand and plant expansion, Dan had hired four additional employees. Three were put to work in the metal fabricating part of the business, and the other was hired to work full time with marketing and distribution. The two employees who had started with Dan had both left for higher-paying jobs, so Dan had hired six new employees in a short time. The first couple of hires were found through ads on Kiji, but lately Dan had simply gone down to the local Canada Manpower office and found the required workers. Dan is becoming increasingly discouraged with the time and hassle involved in managing employees. On many occasions, he would have liked to have fired an employee, but the hiring and training processes seem to take so long that Dan feels that he cannot afford a slowdown of the production process with demand being what it is. He realizes that the type of employee he is hiring possesses little education, but as a small business owner, he simply cannot afford-nor does the job require-better trained employees. He currently pays employees $1 above minimum wage. which is well below union rates. but he increases the wage as the employee finishes the on-the-job training. He also intends to give all employees a raise each year based on seniority. Because the business is losing money. however, Dan does not feel that he can afford raises to employee wages at this time. Some of the employee problems that particularly bother him are employees wanting more money and better benefits: workers threatening to leave for higher wages if he does not increase their wages; work slowdowns when he is not physically present at the plant; poor quality work and too much wasted metal as a result of fabricating errors; and the appearance and conduct of some of the younger workers. This last problem especially annoys Suzie, who is frequently in the plant working on the finances. In addition, on some occasions, Suzie has been in the plant and has given some direction to the workers when Dan is away. The employees simply ignore her because she is not the boss. Questions 1. Evaluate Dan's personnel procedures. 2. How could Dan motivate his employees? 3. What should be done differently for the marketing person? Why? 4. What outside assistance might be available to help Dan with his personnel problems?
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