October 20, 2000
Chief Executive Officer
Headquarters
Shillar SA
Berlin #70929
Germany
Dear Mr. Bernstein:
It was a great talk with you last time when you invited me to a dinner party
for presidents of Shillar subsidiaries. As you requested then, I am writing
to inform you of our decisions for reducing the rate of the absenteeism and
I hope that, with this letter, it is easy to understand the current status of
meetings.
The general focus of meetings has been on the way of decreasing the rate of
absenteeism by accepting proposals of managers and workers, mostly proposals
to make working conditions better. It is because most managers who attended
meetings with a representative of workers' union thought that it is a prior
way for lowering the rate of absenteeism in this company to satisfy workers
with their work place.
Here is some background information for your better understanding on how discussions
have developed. As you know, this company has been suffering from the absenteeism
caused by the effects of the recession and called in a management consultant
to analyse the problem. His findings were poor internal communication which
led to rumors and false information, arbitrary decisions, boredom and frustration
in office, poor use of staff. For settling those problems, executive directors
had a couple of meetings with the union representative last week.
During sessions, all the attendees were absorbed in making the best decisions
and finally attained major developments as the following:
| 1. | Training program for middle managers | |
| Intention: | ||
| The union suggested this expecting this program to make a favorable shift in middle managers' attitude toward workers and create a better mood in their work places. It's because loud cries of discontent with middle managers' unpleasant treatment are being voiced among them. | ||
| Implementation: | ||
| a. period: 9times for 9weeks in this year (about 10 attendees
for each time) b. attendee: about 90 managers picked out by workers' survey c. curriculum: leadership, communication skills, language d. estimated cost: $500 for a person ¡æ $4,500 in total e. condition: extra works for making money to afford the cost |
| 2. | Group activity and get-togethers | |
| Intention: | ||
| Workers want the company to suport workers' group activities and various get-togethers financially. They emphasized the need of more communications among them for avoiding rumors and false information, and for being satisfied working with each other. | ||
| Implementation: | ||
| a. the number of groups to organize: 5 - 10 b. company support: $400-$500 per group per month c. conditions: Monthly breakdown of expenditures to be turned in monthly. |
| 3. | Childcare facilities | |
| Intention: | ||
| Married female workers who have children to take care of want their worries about their children to be lightened by childcare facilities inside of the company. It is because their doubled burden of company works and house works could result in the fact that they are more likely to be absent. | ||
| Implementation: | ||
| a. building facilities: company's responsibility b. estimated cost for building facilities: $50,000 c. costs for maintaining facilities, hiring babysitters, supplying food and toys, and so on: mothers' responsibility. |
In addition to those decided matters, we have several things to discuss more.
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The thing workers give priority is the workers' internal job rotation between task positions of similar operations and training program for this. This is considered as a good method of reducing boredom and frustration, and of developing workers' operating abilities. |
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Workers suggested the company to run toll shuttle buses. |
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Workers also raised the point that there needs to be solutions to problems of arbitrary decisions and promotion system. |
Executives assess that those decisions and considerations above will help us
to decrease the rate of absenteeism in the way of refreshing staff with family-like
atmosphere in the satisfying work place where there is full of communication
and less cares besides their own tasks. On the other hand, there is a few reservations.
Firstly, to me, it was somewhat regretful that most decisions were complying
with workers' proposals. Only the company seemed to be blamed for absenteeism.
There's probably workers' own fault for absenteeism and the company could have
attained our demands such as making and accepting a regulation giving penalty
for absence. Secondly, those decisions will cost us much though we are running
this company with budgets cut by 15% this year. Thirdly, I am a little bit concerned
that group activities can have side effects for working hours. Consequently,
I firmly believe that there needs very detailed plan and strict control, and
then, those worries would be dispelled and our decisions would be successful
when we put them into action.
We managers will be so glad if our parents company willingly help us with these
following two things; finance and information. This company requests you to
loan us $500,000, the cost for the middle managers training program and childcare
facilities, which are considered as things to be preceded. This is because,
as I have mentioned already, most budgets were cut a lot this year. However,
economic future is improving, and so we can pay back a loan in the period of
at most two years. Another thing we ask a favor of you is to provide this company
some information about successful examples of training programs for improving
relationship between staff, if you have any. It would be a good way for you
to request other Shillar's subsidiaries for the information. These things would
be very helpful for this company to solve our problems.
In conclusion, as the way of lowering the rate of absenteeism from 12% to around
6% in two years at most, Shillar France will provide training program for middle
managers and childcare facilities with $500,000, and support staff's group activities
step by step. Although this company needs financial help from parents company
now, these solutions are expected to make us possible to pay back a loan as
soon as we can by improving productivity and making a bigger profit. In other
words, our company will try to offer workers better working conditions, and
workers, with higher morale and labor efficiency, will do their own work duties
earnestly.
As always, we are grateful for your concern and help. We would welcome any
more suggestions or questions any time, if you have. I will write you again
after all the details are fully discussed. And if you require further information,
please contact me. Well then, I am hoping that we will meet again soon and I
wish you have good days always.
Best regards,
Kim Jung-hyun
Production Manager
Shillar SA France
KJH/cbj