Proposal
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Introduction
This is the proposal that we have been working on for Kenneth Dailey at Green River FMC. It will provide the background that was needed to be looked at from Green River FMC and Aberdeen FMC. We will talk about all the areas that we analyzed and give our recommendations and how we feel these recommendations should be implemented.
Background
The FMC Corporation is based out of Chicago with $3.4 billion in sales as of 1989. Their sales are spread out over five businesses, the first one being industrial chemicals, then performances chemicals, precious metals, defense system, and finally machinery. They had a contract with the United States Navy to make missile launching canisters. At first the missiles were being made at the Minnesota plant that had 3000 employees. They could only produce 2 canisters a day. This made them realize that they needed to have a different way to produce these canisters. Since there was a fixed price for these they decided that this was more of a commercial operation than the one they were used to working with. So they decided that a new facility would be a better place to make these canisters. As they research local business environment, tax regulations, community support and labor pools they decided to build a company in Aberdeen South Dakota. The wages were also better there. They decided to make only the canisters at this plant, which gave them only one product.
FMC Green River was completed in 1953. It employed 1,150 employees. They produced over a 100 different products, mainly chemicals. They also worked with the
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United Steel Worker of America a union. They have a large underground mine that produces five million tons of bicarbonate of soda ash a year. (Clawson, 2005) The two other plants produce different kinds of products. There are also three new plants being built. The recruitment at Green River has been very easy as they have gotten applicants as far away as Alaska.
Management of Abilities
The management of abilities is different for both companies. Aberdeen FMC has a team concept that they work with that makes the employees responsible for what happens at the plant. They have teams that elect a team member for each. They have the ability to make their own schedules to accommodate each other. They also can make purchases for tools and materials that they may need. The teams evaluate each other and when there is a problem they discuss it right away instead of waiting for a meeting. This helps to keep the peace. The schedules they come up with our posted in the dining room for all to see. They also work with other teams. Everyone in the plant knows how to do the work everywhere in the plant. They have a meeting on Monday to talk about what ever they want and a meeting on Thursdays to discuss anything that has to do with the work in the plant. Each employee is place in a team and will start learning all there is to know in that team. Aberdeen also has a salary, with other incentives such as having certain days off. The more tasks a person learns the more of a salary they can get. The employees are all cross trained in every area of the company. With this kind of management employees are all cross trained in every area of the company. With this kind of training it is easy for someone to train someone new in the areas. Green River works
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from the top management down to the supervisor. The managers and supervisors take care of making schedules, taking orders from customers, training employees for their specific jobs, and keeping an eye on the quality of the work being done. Since Green River has a union it would be hard to cross train people as the union will have to be involved if it has to do with a salary increases.
Organizational Commitment
Organizational commitment for Aberdeen and Green River has been pretty good.
Both companies have had plenty of growth so, that is not a concern. Both companies have had low turn over rates which are great for a company. The turn over rate for Aberdeen is five to ten percent which is very good. At Green River they have received applicants from as far away as Alaska, so they do not have a problem hiring people there. Both companies have salaries and pay that attract people to the jobs offered. Aberdeen the employees get to learn new skills that can be taken with them should they chose to leave, but because of the learning, challenges, and empowerment of the employees, most stay with the company. Green River pays higher wages so this also helps to keep employees.
Aberdeen uses a management style that has been built to create teams and a family environment. Each person having the power to run the plant on their own helps them to take pride in the product they produce. They are giving rewards for achieving goals and get extra days off around holidays, which help to keep their morale up. At Green River people show up to work and do the job they were hired for. Some people do not want to be leaders and would rather be told what to do. This satisfies some people, to
be able to do this. It gives them security of a job they know how to do real well. With
Green River having so many products and customers, the diversity helps to keep employees knowing that they can communicate with different customers and keep the
products moving. The employees know that Green River has been around for a long time and is secure with its business. With the three new plants being built they are growing even more. This will also give the employees a since of job security.
Job Satisfaction
Job satisfaction is a very important part of any business, especially when the employees love what they do. FMC Aberdeen built their business around job satisfaction. The employees get to make decision on their own, and are supported by the team members. An example of this companys success comes from several of the team members which tell you that management is willing to help them when they