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AN ANALYTICAL LOOK INTO CHEMREZ TECHNOLOGIES, INC. Calma, Domingo, Lao, Romero, Tuazon LS 100K Ms. Regina Lizares
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TABLE OF CONTENTS
1.
Company Background a. VMV b. Founders c. Historical Highlights d. Table of Organization e. Products and Services f. Updated Financial Performance
2.
Focus of Review a. Purpose and Objective of the Study b. Scope and Limitations c. Research Questions
3.
Organizational Diagnosis a. High-involvement management b. Learning c. Motivation d. Leadership e. Research Methodologies f. Problem Statement
4.
Proposed Organizational Behavior Intervention and Analysis
5.
Summary, Conclusions and Recommendations References
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1. COMPANY BACKGROUND
Chemrez Inc. is a major industrial firm in the Philippines which specializes on developing, manufacturing, and marketing various chemical products for the Philippine domestic market and international clients. Their products predominantly focus on applications as resins, oleochemicals, and specialty chemical products, for industrial, commercial, and home use . Chemrez is part of the conglomerate D&L Industries Inc., which has subsidiaries that operate as manufacturers for food, plastics, and aerosol products.
a.
VMV
The following Values, Mission, and Vision statements belong to D&L Industries, Inc. which is the parent company of Chemrez Technologies, Inc and its fellow subsidiaries. Although this document will focus primarily on Chemrez, it may be deemed necessary to discuss the conglomerate’s Vision, Mission, and Value statements as they are also shared by its subsidiaries. Vision:
“To be the leader in the industries that we serve .”
The company’s vision is to be the leader in the industries that it caters its products to. By having this vision, the workers of the company have strived for excellence ensuring that that they have provided the market with products of the best quality so that the customer’s needs and problems are met. Chemrez aims to make its vision come true by sticking to the mission and the values that it holds. It puts its vision, mission and values together so that it can drive its employees to excel in what they are doing and be the number one company in its respective industries.
Mission:
1.
We are dedicated to growth. We are not complacent, timid, or satisfied with status quo.
2.
We are research-oriented. We will keep abreast the latest technology and have our fingers on the pulse of the market to identify market needs that must be met.
3.
We are committed to increase productivity and profitability, but not at the expense of ethics.
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4.
We will continuously enhance our reputation for quality and value. Our products and services must always represent good value for money and be competitive in the marketplace.
5.
We will maintain our market leadership through creativity, innovation, and excellence in performance tempered with experience.
6.
We are proud of our employees. We consider them as our most valuable asset. We will maintain an atmosphere where our people can develop their abilities and potential while working together enthusiastically to achieve our goal.
7.
We will contribute to the well-being of the communities in which we operate, and accept our responsibilities as citizens of the Philippines.
The company’s mission is not only focused on gaining profitability, but also on making sure that they are serving the best quality products to meet the problems of their customers and doing their products ethically and without any harm to the environment. Chemrez also concentrates on its growth. The company continuously researches on the latest technology and the solutions to their customer’s problems. In addition, the company’s mission includes the employees, where the development of the employees’ abilities and potential are a top priority too. Chemrez aims to help their employees in learning new skills to help them in their individual work and the company’s main goal. Lastly, Chemrez not only helps itself but also the communities in where the company operates. Chemrez makes sure that they have the best product quality and also ensures the protection, care and support that the customers, employees and the environment need.
Values:
DRIVE TO EXCEL
FAIRNESS AND HUMILITY
POSITIVE ATTITUDE
COURTESY AND RESPECT FOR
DISCIPLINE AND HARD WORK
HARMONY AND COOPERATION
OTHERS
GRATITUDE AND APPRECIATION
As a company with an excellent reputation not only in the Philippines but also in Asia, Chemrez Technologies Inc. gives importance to all of these values and instils them in every employee, to ensure that the company will stay as one of the leading manufacturers in Asia. And as the company holds its employees dear, Chemrez wants its employees to have these values so that they may grow and develop their abilities while working with one
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another towards a unified goal. Moreover, these values make sure that the employees have a good relationship with each other and especially with the company’s customers, as the company works closely with them. These values help in assuring that the products they are doing for the customers are of the best quality and are well suited for the customers’ needs and expectations.
b.
Founders
The D&L conglomerate was founded by the two brothers - Dean and Leon Lao. Starting out with the plastics and colorants industry, D&L eventually expanded into the food and packaging industries as well. As subsidiaries were added, the plastics division of D&L was incorporated as Chemrez Technologies, Inc. - previously named Corro-Coat, Inc. The two founding brothers of D&L along with their three younger brothers - Alex, Yin Yong (Edwin), and John, are the founders of all D&L Industries, Inc.’s subsidiaries. Dean L. Lao is the founder of D&L Industries, Inc. and is currently holding the position of Chairman Emeritus. He has also founded numerous subsidiaries of D&L namely: Oleo-Fats, Inc., Chemrez, Inc., Aero-Pack Industries, Inc., and First in Colours, Inc. Currently, he also holds positions in these companies as a director. The co-founder and former president and CEO of D&L Industries, Inc., Leon L. Lao currently holds the position of Chairman of the Company. He is also the President and CEO of Chemrez, Inc. while holding a position of Director in D&L’s other subsidiaries. D&L Industries, Inc.’s Vice Chairman is Yin Yong L. Lao. Like the founder and co founder of the company, Mr. Yin Yong Lao also serves as a director of Chemrez, Inc. as well as its fellow subsidiaries. It may also be noted that he is a Trustee of the Association of Petrochemical Manufacturers of the Philippines. Alex L. Lao, with a Bachelor of Science degree in chemical engineering from the Polytechnic Colleges of the Philippines, has served as a Director of D&L Industries ever since 1971. He is also a Director of Chemrez Technologies, Inc. John L. Lao earned a Bachelor of Science degree in Business Administration from the University of the East is the current President of the Company and is also currently a Director of D&L. Currently the Executive Vice President of Chemrez Technologies Inc., he has held this position since 2006.
c.
Historical Highlights
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1963
Brothers Dean and Leon Lao become pioneers in the Philippine plastics and colorants industry
1971
D&L Industries is incorporated -- their initial lineup of services and goods now expand into manufacture, and distribution of chemicals and additives to name a few
1972
Martial Law hits the company, forcing businesses to halt further ex pansions
1974
The first factory of the company opens its door, advancing their services through technologies learned all the way from Germany
1975
An aerosol can manufacturing and filling plant is constructed in Bagumbayan
1978
A resins factory is erected in San Pedro, Laguna
1981
The Philippine Appliance Corporation (Philacor) directly asks for materials from the company -- a fourth plant is put up
1985
San Pedro factory is closed down due to an economic recession, and relocated to Bagumbayan, Libis.
1989
A separate company - Corro-Coat, Inc., is incorporated to continue D&L’s operations regarding oils, chemicals, and resins, stationed in the 1985 Libis plant
2000
Corro-Coat, Inc. is listed on the Philippine Stock Exchange. Symbol: (COAT)
2005
After four years of negotiations, the company is able to partner up with Thailand's TOA Paint, establishing a presence overseas
2006
Corro-Coat changes its name to Chemrez Technologies, Inc. and enters the biodiesel market as a pioneer
2014
The company currently employs over 360 regular and contractual workers -increasing by approximately 30 employees each year (an ongoing trend for the past 5 years)
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d.
Table of Organization
The top organizational chart of Chemrez is comprised of the president, managing director and general manager. Under them are the technical manager , manufacturing services manager , production manager , senior marketing manager and business unit controller as the five managing officers for each division of the co mpany’s main activity and operations. The Technical Manager and his department is in charge of formulating and creating new products, and teams in this division have members different with each unique product being developed. The Manufacturing Services Manager and his team bridge the research and development and production department by ensuring that production follows R&D’s formulations and R&D reformulates if necessary. The Production Manager and his team are responsible for mass-producing of products created by R&D. Meanwhile the Senior Marketing Manager and his team members are the sales persons that market products to potential customers. Lastly, the Business Unit Controller and his team are in charge of all financial records of the company. President
Managing Director
General Manager
Technical Manager
Formulate new products
Chemists
Technicians
Manufacturing Services Manager
Manages production flow based on R&D
Production Manager
Handles massproduction
Quality Assurance Supervisor
Supervisor
Technicians
Manufacturing Enigineers
Senior Marketing Manager
Business Unit Controller
Sales and marketing department
Handles business processes and records, financials, etc.
Marketing Representatives
Accountant
Marketing Services Assistants
Contract Workers
The Technical , M anufacturi ng Services , and Marketing departments are unique in that the associates and members of each division are themselves divided further based on the products which they are assigned to focus on. On the other hand, the staff support department is external from the company. This is because this department provides services to the rest of the subsidiary companies within the conglomerate, and handles the financial, logistical, and HR services of D&L Conglomerate in a centralized system. In fact, the constituent companies are physically in close proximity to one another thus helping in facilitating the operations of these c entralized departments.
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In terms of employee demographics as of 2014, Chemrez has 75 regular employees, 34 apprentices, and 104 members outsourced from Cooperatives. In total, there are 213 employees working in the firm as of writing.
Chief Financial Officer
Human Resources Manager
Purchasing Manager
e.
Logistics (Transport)
Logistics (Warehouse)
Products and services
Chemrez Technologies, apart from being an R&D firm, produces and offers a wide variety of chemical substances and products that a re used in large industries ranging from construction to agriculture. The following are products made by the firm for respective industries: Product
Petroleum
Description
Coconut oil-based fuel enhancers that make engines more efficient and
produce less emissions, and Biosol ™ cleaning solvents. Plastics
General, High Impact, and Flame Retardant Polysterene Resins, Advanced Styrenics (a specialized form of polysterene), and a further assortment of specialty compounds, colorings, polymers, and processing aids & additives that are used to produce common commercial plastics.
Construction
Value-adding chemicals such as Polyester-based Powder Coatings (as
protection for metal products such as bicycles, etc.), Polymer Emulsions to reinforce cementious mixtures , other Cement Additives, and wet concrete-mixed Cement Colorants. Composites
Multiple chemical resins used for manufacture of industrial materials such as fiberglass, laminates, figure casts, and reinforced plastics: Orthophthalic Polyesters, High Molecular Weight Polyester, Isophthalic Polyester, Water Extendable Polyesters.
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Personal &
Coconut oil-based products such as Refined Coconut Oil, Methyl Esters
Home Care
as intermediates, Surfactants to stabilize and boost foam for soaps, Glycerides for food and personal care products as emulsifiers, and various additives.
Agriculture
Adjuvant chemicals for crop protection as fungicides, insecticides,
herbicides, and disinfectants for seeds; current product line for use with banana crops. Paint & Coating
Provides total solutions for all chemical paint applications with
Polymeric Binders, Activ ™ Additives, industrial Colorants, water-based Endura® Wood Coatings among others. Oil & Gas
Products for upstream industry processes with Drilling Fluids,
Organic Solvents, oil Defoamers, Oil Dispersants & Washing Agents, and Cleaning Chemicals to remove oil, sludge, greases, carbon, soot, and other oil deposits. Water Treatment
Water treatment plant and process chemicals such as Defoamers and
Anti-Foams for desalination plants, Industrial-application Defoamers, and Burner Treatment chemicals for fuel burners and furnaces .
The firm’s product line has an emphasis on industrial production and solutions in regional scale, targeting domestic as well as Asian customers. Key to the company’s success is the innovation and technological advantage afforded to it by its research and development, which allowed it to diversify into manufacturing from chemical trading. The products it provides may also be specialized and tailor-fit to a customer’s needs and specifications, as well as providing comprehensive system solutions with multiple products, both of which add to the flexibility of the firm.
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f.
Updated Financial Performance
UPDATED BALANCE SHEET:
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Given these figures, we use the formula net income after taxes divided by total assets in order to obtain the return on investment of the company. For 2011 return on investment equalled to 6.5%, and while it decreased on 2012 to 5.6%, in 2013 it grew to 5.9%.. Within 2012, total assets fell mostly in proportion with the fall in liabilities, possibly indicating payments and settlements of company liabilities using given assets for the year. Total assets for 2013 increased, mostly in current assets, and is mirrored by an increase in borrowings and payables which may indicate preparations for an increase of operations. Chemrez is also listed in the Philippine Stock Exchange. The company’s historical stock data within the past year, as of September 1st 2014, is as follows:
The stock price reached a record high within the year on the end of July 2014, with a value of 5.98 per share, a 52-week high of 5.93, and 52-week low of 2.70. The trend over the past year is a steady increase of company stock value, leading to record high price values, as the firm continues to grow. This is a generalized indicator of the company’s positive overall health and performance.
2. FOCUS OF REVIEW
a.
Purpose and Objective of the Study
The study aims to look at the relationship of the company to its employees. This includes the organizational problems that are being faced by the company. Moreover, the study specifically aims to evaluate the phenomena of associates and employees leaving the firm to work abroad, in another competing firm, or elsewhere. As the researchers study the company and its people, new methods and approaches will be found in order to maintain and even strengthen the relationship of the company and its
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employees. With this, employees will be expected to remain loyal to the company and work with the best of their abilities.
b.
Scope and Limitations
The scope of the research will include the study of associates with ties with the company. These will be limited, however, to employees that work for the company and those that have left the company in order to work abroad or for a competing company.
c.
Research Questions
● Do associates exit Chemrez? ● In recent years, how many associates have exited Chemrez? Annually? ● Why, or what reasons do associates give for leaving the firm? ● What internal factors within the company affect an associate’s decision to leave? ● What external factors affect an associate’s decision to leave? ● How can Chemrez identify, quantify, and acquire data on the incentives given to employees for them to leave? ● How does the trend of employees leaving affect the company in a productivity level and financial level? ● How do associates that stay in the company affect, react to, and adapt to their colleagues leaving the firm? ● To the remaining employees, what benefits do they enjoy as they sta y in the firm? Does the firm provide further incentives for loyalty? ● What response or reaction does the company implement after an associate/employee exits the firm? ● What steps has the company taken/can be taken in order to remedy the trend of employees leaving for abroad? For other companies? ● What actions do managers in the firm take to maximize (and possibly reallocate) associate labor or compensate for gaps in labor and human capital?
3. ORGANIZATIONAL DIAGNOSIS
● High-involvement management ○ Sel ective H i r in g Key characteristics of high-involvement management includes carefully selecting and training associates, giving them significant decision-making power, information sharing, and
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incentive compensation. Chemrez ensures that the selection of employees would be undertaken with great care to ensure that only the most qualified persons are taken in. Whenever possible, positions are to be filled from within. The company accepts on-the-job trainees or fresh graduates to work with them as assistants.
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○ Extensive Tr aini ng Employees are trained in order to make sure that they perform adequately in the jobs assigned to them. As soon as employees enter the company, there is only one training program conducted for the whole group of companies of D&L Industries. In this training program, company orientation is provided to make sure that employees learn and understand the culture of the company. After this, the employees are trained in assigned areas specific to their position or department. Most of the employees start at lower ranking jobs; this is to ensure that they know even the tiniest details that are relevant to their work. As employees learned, they are allowed to do more complex jobs and even supervise if necessary. Following the quarterly evaluations for performance and salary adjustments, promotions may be considered if an employee displayed superb performance or potential to take greater responsibility. For such cases, the employee would be enrolled in a Career Development Program to better equip him or her for a higher position.
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○ Decision Power Moreover, employees are also given decision power. For example, when supervisors are not around, they can do the jobs of their supervisors as long as they are really familiar with it. They can handle issues that they have proper knowledge. Furthermore, employees are also given chance to participate in decisions or give comments and suggestions about ideas made by their coworkers, both the lower-level and even middle managers. ○ I nformation Sharing For information sharing, employees are well-informed about the plans for a product that they have to produce. Because of this, when a person leaves the group, they can continue to work on it. Employees have regular meetings to make sure that all of them know where the company is in achieving their targets. Different areas also have bulletin boards that enable associates to see and review their target performance, new announcements about the plan of company and many others. ○ I ncentive Compensation For the incentives, employees are given salary increases based on their performance. These monetary incentives are added yearly while the employee’s performance is evaluated quarterly, by the employee’s immediate superior. However, this is not always the case for bonuses because when the company grants a bonus to an employee, they will be obliged to give the same bonuses to everyone. This is the reason why they are very careful in giving bonuses. Overall, the salary of each employee increases every year. Aside from this all employees are covered by the Group Personal Accident Policy (GPAP) for life insurance, as well as bereavement assistance from the company, for employees with at least one year of continuous service to the company, should an immediate family member meet an ill fate. Health services are also covered by the company via the Health Maintenance Organization (HMO). A retirement plan is also available for employees who have reached 60 years of age. Finally,
the
mandatory
benefits
include
SSS
Sickness
and
Maternity
Benefits,
PHILHEALTH, Employee’s Compensation Program (ECP), and PAG -IBIG Fund.
● Learning Employees, especially OJTs and fresh graduates, are given significant opportunities by the company to learn. As mentioned, they start as assistants and eventually they are promoted to higher positions. This is partly connected as well with information sharing as they are given chances to learn through their superiors, as well as through personal experience. Once the employees work for the company, they allow themselves to start and
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grow their own career path. This is because when they move out of the company, they are presumed to be ready and well-equipped for the other firms that they will work with. Chemrez recognizes this, and places value on the future endeavours of their associates whether they stay or leave, not for the benefit of competitors, but for the individual. In Chemrez, employees and managers have friendly relations so the work environment is kept peaceful and amicable. Managers are willing to delegate, develop and motivate their associates. As mentioned, managers are not selfish to just keep all the knowledge to themselves; instead, they allow each associated to learn and develop their skills, aiding them by providing input. Because of this, employees are more motivated in their jobs because they feel that their superiors value and trust them. As mentioned previously under Incentive Compensation, the employees are evaluated quarterly by their immediate superior. While these evaluations are meant to gauge employee performance and potential for promotion, feedback is also given to make the employee aware of his strengths and weaknesses. In this structure, there will always be points for improvement and more responsibilities to be handled for capable employees. For the associates, since they are given the power to make decisions, they are able to carefully consider the important factors and inputs regarding their jobs. In addition, the associates want to improve on their skills and develop themselves. The company wants their employees to maximize their own potential be the best with what they are doing. Chemrez also wants their employees to work well with one another to make sure that they provide the best possible output that they can.
● Motivation ○ ERG Th eory Work motivation is one of the main concepts that affects the performance and commitment of the people to the company. In Chemrez, motivation of its employees can be analyzed through ERG theory. They have existence needs, relatedness needs and growth needs, which are consistent with Alderfer’s theory. Existence needs includes the physiological needs which are the basic survival needs, and the safety needs which pertains to the needs of individual to be safe and secure in the environment that they live in and are working with. These needs can be attained through their compensations, bonuses, and even the health benefits that the company offers to them. This therefore means that the monetary rewards are also complemented by passive incentives. which are especially attractive for young associates who have often just started to build their
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own independence and personal stability. Together they are a primary motivational force, especially for younger or lower-level associates or managers. Relatedness needs are the social and belongingness needs that employees attained through their relationships with their co-workers, supervisors and managers. The work environment in Chemrez is considerably friendly that they mostly receive good feedback in this regard. This is the reason why in each exit interview survey of each employee,many have answered that they did not have problems regarding their relationships with their co-workers and superiors. In terms of the growth needs, employees are given the chance to allow themselves to maximize their potentials. Many employees start as assistants and as years pass, most are promoted with higher ranking positions within the company such as supervisory or managerial roles. Once the company sees the potential in their employees to handle more complex tasks and leadership positions, they facilitate growth and development through promotion. ○ Herzberg’s Two-F actor Theory The two-factor theory of Herzberg can also be used to analyze the employees of Chemrez. Employees both have motivators and hygienes. Motivators are being largely given by the company to their employees like opportunities for advancement or promotions, challenging work, and potential for personal growth. However, there are also hygienes that influence their job dissatisfaction. The most common of this is the pay or compensation that they receive. Employees have a natural tendency to desire for higher compensation and benefits. A considerable number of associates make this their primary motivator. Because of this, their decisions on where they work, whether in Chemrez or elsewhere, are affected or are directly influenced by it.
● Leadership ○ L eader -member r elati ons The leader-member relations of the company is very favorable because the employees respect their bosses and superiors, and the bosses have friendly interpersonal relations with their employees. The top management and owners do not just stay in their offices but they walk around the plant, communicate with their employees and check on what they are doing. Even though the position power of the bosses are high, there is still only a little gap between the status quo of the bosses and the employees.
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○ Parti cipative L eader shi p Senior management show a participative leadership style because they share information, personally consult with their employees and they put real value on teamwork in the company. This allows employees to be inspired and motivated in accomplishing their tasks effectively and efficiently as they see clearly the perseverance of the senior management to make them understand the goals of the company, as well as knowing they have a ready support system.
Research Methodologies
The research methodologies that the group used are interviewing people and using the exit survey of the company. Human Resource officers are interviewed to obtain the information needed about the employees of Chemrez. Through this comprehensive interview, the main problem of the company with regards to its employees is seen and emphasized. In connection to this, in order to know the reasons and problems of the employees with regards to the company, the exit survey conducted by the company is used. This survey allows the company to know if employees encounter any problems in the organization. Since the employees leaving the company always answer this survey, the sample size is approximately 15% of the total employees of Chemrez.
Problem Statement
The main problem of the company is the leaving of employees to work for other companies or industries here in the Philippines or abroad. Overall, the values and culture of the company are modeled well, as can be seen in the feedbacks that they receive from their employees. However, employees may have problems in terms of compensation given to them. It is not as low, but other firms are willing to offer higher compensation to get them to work for them especially competitors. This is despite the fact that they have employee confidentiality agreement that they cannot work for or put up their own businesses that are in the same industry as Chemrez within three years.
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4. PROPOSED ORGANIZATIONAL BEHAVIOR INTERVENTION & ANALYSIS
OVERALL PROBLEM TO BE ADDRESSED A trend is occurring in that younger associates, usually those that have only graduated 3 or less years before, are leaving the company, feeling that t hey have little incentive to stay PROBLEM Benefits
Employees feel current benefits don’t affect them Employees are looking for now centered benefits E.g. young workers not enticed by a retirement plan
Pay
Salaries of foreign companies are enticing to associates There is a need to compete with pays of other firms
Need for reaffirmation of high-involvement management
“Lack” of Career
Opportunities
Allocate cash consumables
Associates sometimes have the perception that they will be better off somewhere else
Incentive for associates to organize their own company gatherings/get-togethers
Redesign jobs
Start within associate circles to evaluate wages Work with consultation firms to further increase industrystandard awareness
Increase inter-associate responsibility
NOTES
Cash-loan benefits New associates are mostly young and single; this can help them start-up
Provide more research
Organizational Involvement
SOLUTION
Increase complexity Giving more responsibility Greater control of work
Chemrez currently provides it’s employees with multiple benefits such as retirement plans, PHILHEALTH, and leaves with pay
As is stands, Chemrez already increases the pay of its associates yearly to compensate for inflation. However, this is not seen as “enough”
Various research have already supported that simply increasing payment and benefits are not enough to satisfy associates The Chemrez environment boasts good, clear relationships between high and lower management people
The solutions are done to give the associates a feeling of a greater sense of duty, decision power and productivity
OVERALL GOALS OF SOLUTION 1. To build up attachment to Chemrez 2. Decrease the mentality of associates treating Chemrez as a “st epping stone” 3. Increase retentive measures to cultivate the wants and needs of associates
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One of the most pressing organizational problems that recur are those that have to do with pay, compensation and benefits of the employees of Chemrez. In addition with its industry-standard pay (which increases every year to compensate for inflation, for price changes, and to maintain standards of living, etc.), Chemrez has an extensive list of benefits for their associates. Aside from mandatory perks such as PHILHEALTH, Pag-ibig funds and SSS Maternity benefits, the company also indulges its associates with many other benefits and remunerations. Other incentives and benefits that are offered by Chemrez to its employees are employee health programs, and retirement plans. The trend though, indicates that a large percentage of the associates that leave are of the younger generation, such as recent graduates or more often employees that have stayed in the firm for three years or less, who are not fully motivated by extensive benefits of the company and thus have little incentive to stay. For example, a young employee will not see the attractiveness of a retirement plan, or long-term health plan benefits. According to interviews, young associates are looking for benefits that directly affect them, or have direct value that can be easily transformed into monetary value. With this in mind, benefits with immediate rewards could be implemented to further implemented to incentivize loyalty to Chemrez. Younger associates are more for the now and short-term benefits. One of the things that new employees look for are cash consumable benefits. As an example and recommendation, the company can indulge their associates with loan programs. Seeing as young employees are usually single and have most likely just left the household of their parents, loan programs can help them get started independently and stabilize their lifestyle. Secondly, the company must ensure that the salary they are giving is competing well with the industry standard. Yes, the company increases their shell-out on salaries per year but inflation effectively counters this. With foreign companies beginning to look more and more enticing over time, a proper evaluation of wages is called for. This can be done through extensive research within its associate circles, starting with surveys to collect and gather information as well as working with consulting firms that research industry labor standards and trends to identify key quantifiable data, such as extra margins promised to transferring associates, average ages of transferees in the industry, and especially on employee compensation, both monetary and passive benefits. While more attractive pay and benefits are management’s bread and butter on the issue, it has been often noted through various organizational research that this is of course not enough. In other words, associates that leave often look for more than higher pay. Chemrez
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already boasts a notably peaceful environment where higher management people are able to show their care for lower management associates, and associates are generally favorable on their peers. This broadly means that problems in the workplace are usually easily mitigated. There should thus be a reaffirmation of the high-involvement management techniques noted in the organizational diagnosis of Chemrez; the organizational structure and the general behavior of its members are adequate enough to accommodate the personal requirements of its individual associates or managers beyond compensation considerations. One way to expand awareness of this to inevitably serve as an implicit incentive for associates is to organize regular company gatherings or get-togethers in casual settings, better if within the organization premises. What this can implicitly achieve is to show or remind associates how their positive relationship with the organization and each other still holds. There should be a build up of attachment and investment to Chemrez and its culture, which can act as a secondary consideration complementing the compensation consideration as a counterweight to it. Perhaps what employees are adverse to is the perception that career opportunities are better elsewhere. To combat this, redesigning jobs are needed. The jobs of associates (especially for the younger demographic) can be enriched in a way that increases its complexity. By giving them more responsibility as well as (relatively) more difficult tasks and tying these to meaningful rewards in a meaningful way, associates will have a greater feeling of satisfaction when it comes to their jobs. This greater control of work can expand their duties and have them experience greater decision power, more sense of responsibility, and more productivity. These are hoped to decrease the recurring mentality of younger associates that think that Chemrez is simply a stepping stone, a platform used to increase their experience, and pad their own resumes when they work abroad or elsewhere. These recommendations are aimed not only at stopping employees from leaving, but rather as retentive measures that also cultivate the needs and wants of employees, which also benefit the company in equal measure.
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5. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
Chemrez Technologies is a firm that has a dominant position in the creation and application of various chemical products for both the local and international market. The firm aims to be the leading example in its field by providing excellence and quality that their customers will value and care about. Under the leadership of Dean and Leon Lao, Chemrez grew from its humble D&L beginnings to the company that is it today. However, despite reaching a record high in terms of stock prices this year, Chemrez, like any modern firm, faces several troubles. Recently, the organization has been fronted with young associates leaving its doors. Through the use of interviewing different people and exit-interview surveys, this paper has proposed a 4-pronged solution to attack the problem. ● ● ● ●
Allocating cash consumables Providing more research on wages Increasing inter-associate responsibility Redesigning jobs
We also concluded that the phenomenon of associates leaving Chemrez for outside employment opportunities is not due to direct mismanagement on the part of the managers of the firms, adverse conditions for of its associates, or a toxic and non-conducive environment. Hence, there are no internal factors that influence the exit of associates. Our findings point the cause of the phenomenon to the following: ● Individual motivations, needs, or wants of its (often lower-level) associates ● Managers who perceive better opportunities in other firms and professions ● General compensation or in monetary terms. The factors, which then affect this phenomenon, are internal for the employees as they seek better compensation and benefits. Meanwhile the enticements and allure of other firms, professions, or locales, whether intentionally directed towards the associates, are the external factors which influence their decisions. Chemrez can thusly be considered a healthy and balanced organization with a significant understanding of effective management and organizational practices which ultimately provides opportunities as well as rewards to its members, yet faces problems
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stemming from outside its direct activities but is within its reach and capability (as well as responsibility) to address. The aim of this paper was to focus on, analyze, and evaluate the relationship of the company with regards to its associates in order to mitigate or fix any organizational problem, especially with associates leaving the firm to work elsewhere. According to the research and interviews done, the preeminent complication that the firm faces can be dealt with (mostly) internally. By understanding and focusing on its core, young associates, Chemrez can have a firmer grasp on its employees. For further research, this paper suggests looking into loyalty; what makes it ticks, how it works and things that go for and against it. As the saying goes, loyalty cannot be bought. And while our initial interventions may work for an employee's motivation, there is a possibility that this motivation will only last short-term. If Chemrez is to secure total loyalty from their associates, then the focus must be expanded as well. This can be done by widening the research, thereby surveying and researching on current employees -- asking them why they had stayed and the like. In short, this paper recommends that added analysis can be done in the area of loyalty and those not only who have left, but those who have st ayed. The issues faced by Chemrez roots from the unique wants and needs currently clamored by much of its younger associates. In general, Chemrez needs to better handle its focus on new associates, as without the proper cultivation of these associates, Chemrez may find itself treading in dangerous waters - a time when the older associates hang up their mantle, and there would be no one to take them up. Taking care of its new generation of employees does not only lock those employees for Chemrez, but it also locks Chemrez for a better future. A company can fare better if it is handled by experienced and loyal managers, and the only way to train these kinds of managers is to train and retain these managers as early as possible: that is, now.
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