Memo Essay Example | Topics and Well Written Essays - 750 words - 1

Memo - Essay Example However, you also asked me to consider the opinions of the employees at the plant and what they feel about working overtime. We have completed the report that you asked for and this report presents the cost differentials of the two alternatives to increase the production and manufacturing. Moreover the report analyzes both alternatives in detail and also provides recommendations after considering the cost differential as well as the responses of the employees. Summary I have analyzed that the cost per unit of overtime and if the production of additional 150 units per day is increased through overtime then it would cost $388.54 or $2.59/unit. On the other hand, the cost of production for the second shift with additional 150 units per day would be $421.08 or $2.81/unit. Therefore, it shows that the cost of production with overtime is lower if the production is 150 units and Wilderness Toys would be able to save $0.22 per unit or $32.32 for 150 additional units. However it has been foun d that most of employees are not willing to work in the long term but only for the short term. Therefore because of this reason, I would prefer Wilderness Toys to start a second shift rather than asking employees for overtime. Discussion As the demand of new lighted hiking hat has been increasing, therefore there is a need to increase the demand of the product. In order to increase the production and meet the increasing demand, the management of the company has two different alternatives; to start a new production shift or to require its employees to work overtime. The report presents the cost differentials with the two alternatives in producing the new lighted hiking hat. Table 1 shows per unit cost of production of the two alternatives available. Table 1 also shows the differences between the two alternatives and it can be seen that per unit cost difference initially is in negative as per unit overtime cost is less than per unit second shift production cost. Therefore it reveals t hat if the management plans to produce fewer units then it is preferable that they can encourage employees for overtime rather than starting a second shift. Table 1: Per Unit Cost Units  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   OT unit cost  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2nd shift unit cost   Differences 75 2.59 3.49 -0.9 150 2.59 2.81 -0.22 225 2.59 2.58 0.01 300 2.59 2.46 0.13 375 2.59 2.46 0.13 450 2.59 2.46 0.13 525 2.59 2.46 0.13 600 2.59 2.46 0.13 Figure 1 graphically shows the cost per unit of the alternatives and it can be seen that the cost per unit of second shift at 75 units is very high in comparison to per unit cost of overtime. However per unit cost of second shift has been decreasing as the production is increasing and it is visible. As the production increase, per unit cost of second shift would decrease whereas the cost per unit of overtime would remain the same irrespective of the production. Figure 1: Cost Per Unit Figure 2 shows the cost differential between the two alternatives and it can be identified from the Figure 2 that the difference is in negative initially thus, showing that per unit cost of overtime is less than the per unit cost of second shift. However, as the production

Marketing Essay Example | Topics and Well Written Essays - 2000 words - 8

Marketing - Essay Example Additionally, employees have the opportunity to take early retirement, meaning that they can take one day off during the week in exchange of promise to work for one day a week after their retirement. The employees are granted an opportunity to appraise and rate their bosses twice yearly and bosses who consistently exhibit poor performance are squeezed out. SEMCO have policies that ensure openness of the financial statements that enable low level employees such as secretaries, receptionists and factory workers understand the financial performance of the company. The salaries of employees are available to the public unless the concerned employee is willing to maintain his or privacy. SEMCO has allowed all employees to set their own individual production quotas, thus motivating employees to voluntarily work overtime. The company has implemented a profit sharing policy that includes all workers even the factory workers and senior managers are not entitled to large bonuses. The company ha s implemented six types of rewards that include commissions on the gross margin, stipends, bonuses, profit sharing and royalty on sale of profit. A classical organisation with a traditional approach to industrial relationships is Interserve plc of the United Kingdom. ... Union of Construction, Allied Trades and Technicians (UCATT) is the only trade union that caters for only the needs of construction workers in the UK. Its membership spreads across Wales, Scotland, Northern Ireland and England. Construction industry in the UK has continued to exploit the workers through low wages, dubious employment agencies and poor working conditions (Dunlop, 1993 p. 50). Industrial relations can be defined as the institutions and processes that establish and foster rules and regulations in the workplace. Industrial relations dates back to the industrial revolution era that was characterized by low wages, limited markets and capitalist thoughts of business owners (Batstone, 1988 p. 10). According to human resource management perspective, industrial relations involve employment contracts, government agencies, and conflicts that arise due to interactions in the workplace. According to Bean (2004), industrial relations refer to the nature of relationships among employ er, employees, the trade unions, and management p. 47). Industrial relations established democracy in the organisation and improves the morale of employees. Industrial relations will also foster enactment of sound labour laws, ensure fair employment practices and ensure efficient use of human capital in the organisation (Harcourt and Wood, 2006 p. 100). Industrial related conflicts result from diverse social economic, political and psychological factors. There are different approaches to industrial relations in an organisation. One of the approaches is the psychological approach that asserts that perceptions of workers, management and trade unions contribute to job related conflicts in the organisation (Salamon, 2000 p. 41). For instance, the beliefs and