Slade Plating
An Analysis of the Slade Plating Department Case
John Couchell
Wingate University
Slade Company is a small but prosperous manufacturer of metal products located in central Michigan. It employs 500 workers who are engaged in producing a large variety of clamps, inserts, knobs and similar items. Despite the success of Slade Company, the manufacturer faces problems in the plating department. The production manager, Ralph Porter, is concerned about dishonesty among employees, abusing the clocking system for logging in the work hours. The typical workweek in the department is 60 hours, with the first 40 hours paid on a straight time basis while additional hours were paid 50% higher (100% higher for weekend work). Typical workdays are from 7.00 to 7.00 pm. Since the supervisors leave around 5 pm, one employee can stay late and punch-out for everyone.
On the surface, the main problem faced by the company is the abuse of the time clock and the unethical behavior of the employees. However, the most significant issue that needs to be resolved in the plating department is how the employees are paid. Pay is considered low for the central Michigan area. Employees typically start a few dollars above minimum wage, with small increases given over time based on seniority and skill. In addition to the low pay, working hours in this department are long. To keep employee training and benefit costs down, the Slade Company practice is to increase overtime rather than hire new employees.
Pay is an extremely important issue not just to the Slade employees but to any employee. The low pay has created an atmosphere promoting the unethical behavior. The employees have developed a “you owe me” attitude. They are intentionally abusing the time clock in order to get what they perceive to be a fair wage. Their actions are also accepted as the norm. The company seems to be overlooking this behavior since the supervisors are leaving before all the work is
John Couchell
Wingate University
Slade Company is a small but prosperous manufacturer of metal products located in central Michigan. It employs 500 workers who are engaged in producing a large variety of clamps, inserts, knobs and similar items. Despite the success of Slade Company, the manufacturer faces problems in the plating department. The production manager, Ralph Porter, is concerned about dishonesty among employees, abusing the clocking system for logging in the work hours. The typical workweek in the department is 60 hours, with the first 40 hours paid on a straight time basis while additional hours were paid 50% higher (100% higher for weekend work). Typical workdays are from 7.00 to 7.00 pm. Since the supervisors leave around 5 pm, one employee can stay late and punch-out for everyone.
On the surface, the main problem faced by the company is the abuse of the time clock and the unethical behavior of the employees. However, the most significant issue that needs to be resolved in the plating department is how the employees are paid. Pay is considered low for the central Michigan area. Employees typically start a few dollars above minimum wage, with small increases given over time based on seniority and skill. In addition to the low pay, working hours in this department are long. To keep employee training and benefit costs down, the Slade Company practice is to increase overtime rather than hire new employees.
Pay is an extremely important issue not just to the Slade employees but to any employee. The low pay has created an atmosphere promoting the unethical behavior. The employees have developed a “you owe me” attitude. They are intentionally abusing the time clock in order to get what they perceive to be a fair wage. Their actions are also accepted as the norm. The company seems to be overlooking this behavior since the supervisors are leaving before all the work is
References: Dagmar Recklies (2001) “Porter’s Five Forces” http://www.themanager.org/pdf/p5f.pdf McCrimmon, Mitch (2007) “What is Informal Leadership.” http://businessmanagement.suite101.com/article.cfm Robbins, Stephen P. and Judge, Timothy A. (2009). “Organizational Behavior.” Prentice Hall Publishers, pp. 276-293.