Describe the facts in this case in order of priority. What are the problems that management is facing? What are the probable underlying root causes of these problems? Based on your reading, class lecture and discussion, and your own research – what recommendations do you have to solve the problems?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Summative Concept-based Assessment: Case Study


Read the following case (AEssay) and give your answer to the questions.


Despite
an unemployment rate of around 9%, U.S. manufacturing companies are scrambling
to find enough skilled workers. There are several reasons why this is
occurring. First, there is an increased demand for manufacturing workers.
Second, baby boomers (employees 55 or older) making up more than 25% of U.S.
manufacturing employees are beginning to retire. Third, the U.S. education
system is not developing the math and science skills potential employees need
to operate computer-controlled factory equipment like lathes and other
metal-shaping equipment. Math and science test scores for U.S. students are
significantly lower than those compared to students from countries such as
China, Japan, Canada, and Germany. Also, manufacturing jobs suffer from an
image problem.


Although
these jobs often pay from $50,000 to $80,000 per year with benefits and many
require advanced math, mechanical drawing, and blueprint reading skills,
parents discourage smart children from considering careers in manufacturing,
instead emphasizing enrolling in four-year colleges. Also, youth often are
unmotivated to train for manufacturing jobs because of misguided stereotypes
that they are dirty, unsafe, and boring. Fourth, many manufacturing companies
decreased the emphasis they placed on recruiting and finding employees when it
was easier to find them in the labor market. For example, Woodward Inc. a parts
manufacturer for aircraft and power generation equipment based in Fort Collins,
Colorado, used to operate its own training academy but closed it to lower
costs. As a result, the company lost its pool of available skilled machinists
and technicians. To reestablish a pool of skilled workers Woodward is
sponsoring students enrolled in two-year programs in manufacturing skills at
local community colleges. The company pays their tuition and other costs and
they are paid for working part-time. Woodward’s goal is to hire those students
for full-time manufacturing jobs after they earn their two-year degree. Hamill
Manufacturing Company, a 127-employee company located near Pittsburgh,
Pennsylvania, cuts metal into parts for ships and machinery. The company needs
to fill customized orders for small numbers of parts requiring meeting precise
specifications. To find workers Hamill works with vocational schools. Employees
serve on advisory boards, donate equipment, and even volunteer as guest
lecturers. Jeff Kelly, Hamill’s chief executive officer, organizes a program in
which high school students learn to build fighting robots. These activities
have paid off in attracting talented new employees, but other larger companies
are poaching talented workers away from Hamill Manufacturing. One Hamill
employee who won a national competition for metal working skills left for a new
job at Curtiss-Wright Corporation, a company that makes pumps and generators
and purchases parts from Hamill. Curtiss-Wright pays him 40% more than he
earned at Hamill and because it is a larger company it has more career
opportunities.


To
try and discourage skilled employees from leaving Hamill, Jeff Kelly increased
wages 18 to 25%. Despite the pay increases, over the past two years, Hamill has
lost 10 employees to Curtiss-Wright. Besides poaching and involvement with
community colleges, other manufacturing companies are relying on creative
sources for skilled workers. Swift-Cor Aerospace is hiring former prisoners for
its airplane parts plants near Los Angeles. San Quentin prison in California is
using its machine shop to train prisoners’ skills in operating
computer-controlled lathes and mills. Some prisoners also take classes in
calculus and trigonometry to help them work with machinery. Advanced Technology
Services of Peoria, Illinois, hires employees with military backgrounds because
they have acquired the skills needed to fix equipment through repairing tanks
and airplanes and have a strong work ethic.

Questions


Describe the facts in this case in
order of priority.
What are the problems that management
is facing?
What are the probable underlying root
causes of these problems?
Based on your reading, class lecture
and discussion, and your own research – what recommendations do you have
to solve the problems?

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