1 Globalisation

Consultant's report
Michael Chauis aware that moraleis low among managers and
lower-level staff. He has asked a business consultant to investgate
the reasonfor this. Hereare the consultant's main findings.
Management
Managers of subsidiaries say they are underpaid. They are
demotivated and feel their contribution to the group's profits is
undervalued.
The majority of managers say they should have a sharein the
profits of their subsidiary (5%-10% was the figure most
commonly mentioned).
A ll managers reported that they did not have enough freedomof
action. They want more autonomy and less control fromhead
office over finance, pay, and sources of materials.
Managers need more advice on quality control, and would like
more contact with staff fromother subsidiaries.
Factory workers and adminstrative staff
Staff turnover is high in most faetones. Industrial accidents are
common, mainly becausehealth and safety regulations are not
being properly observed.
Factory workers complain about their wages. They are paid
according to local rates, which in some countries are very low.
They are often expected to work overtime without extra pay.
A dministrative staff said their offices are overcrowded and badly
ventilated (e.g. too hot in summer, too cold inwinter).
Supervisors fromhead office are often of different nationality
fromtheir staff This causes communication problems. Many
factory workers said they did not always understand their
supervisors' instructions.
Form two groups, A and B.
Group A: Discuss the probl ems mentioned in the
Discussion document and decide how to deal with them.
Group B: Discuss the probl ems outl ined in the
Consultant's report and decide how to deal wi th them.
Meet as one group. Present the results of your
discussions to each other. Then produce an action plan
to solve Fortune Garments' probl ems.
Writing
Write a memo, for the attentionof Michael Chau,
summarisingthe problems that you discussed.
Recommend a courseof actionto improve the
situation. Give reasons for the actions you propose.
Writing file pages 144 and 145
h3