August 2009 - Singapore Manufacturing Federation

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BowlBy Gillian LimAnother reason is to optimise productivity as manufacturersshift from the old paradigm of entrepreneurship. Lecturer atHRM unit, National University of Singapore (NUS) BusinessSchool, Dr Winston Lee shared that, “As organisations’hierarchies continue to restructure and re-engineer to becomeleaner and mobile, many companies are moving onto aglobalised context. Employees today, need to be equipped witha mental model and mindset that allows them to be versatile,creative, innovative and easily integrate-able in this age of rapidtechnological changes and globalisation.”The StormThe manufacturing industry, especially for productswith a long production chain, is among other sectors, thefirst to feel the signs of a declining economy. Despite theindustry’s volatility, many manufacturers still bear hopes ofbetter visibility. Before long, they had to quickly dispense‘excess’ manpower pursuant to poor utilisation rates of themachineries and facilities.Bigger companies with global operations may resort tostreamlining and relocating operations, resulting in massretrenchment exercises. This is bad news not only for employeesbut also for the company at large. Mr Renny Yeo, President ofthe Singapore Manufacturers’ Federation, said: “Retrenchmentis an expensive long-term exercise because once the economypicks up again, the company would have lost relevant skill setsand productitve workers.”Workforce planning may also be affected by disasters orpandemic spread such as H1N1 or SARS. In 2003, SARS caughtthe Asian manufacturers by surprise and degenerated consumerconfidence and export growth. Handset manufacturers in China,Taiwan, South Korea were badly hit by the SARS pandemic asproduction plants were closed on suspicions of SARS infectionsamong employees. Prospective orders were lost as customerschose to divert orders to countries that were not affected bySARS. The lesson learnt is that business continuity planningand a well-managed workforce hold great significance to thesurvival of a company amid crises.The ShelterHR can use corporate and socially responsible ways to cutcosts and manage excess manpower. The government hasintroduced schemes and programmes to help ease businessowners’ stress during periods of falling sales. These include theJobs Credit’s cash grant and the Skills Programme for Upgradingand Resilience (SPUR).Under SPUR, companies send their employees for up-Skillingor re-Skilling courses; to help them convert to new jobs or takeon new roles in the company. This strengthens the company’scapabilities to prepare for the upturn, while sustaining themorale of the workforce.Companies with the flexible wage systems in place can alsomake use of variable components in the wage structure, toreduce wage costs. This includes wage freeze or wage cut.Shorter work schedule, temporary layoff and redeploymentmay also be implemented. Employees, for instance, can take upto 50 per cent of annual leave entitlements, or paid at least 50per cent on days they are not required to work. Shorter workweek of up to three days in a week for a maximum three-monthduration may also be implemented.Other alternative work arrangements include part-timeemployment, job-sharing and flexible work schedule, inconsultation with unions and employees concerned.ConclusionThere are no unbreakable rice bowls when it comes to theharsh reality - a company’s dollars and cents. However, companiesmust regard the workforce as an invaluable resource and takeextra care to assess their HR needs. Breaking many a worker’srice bowl may end up costing the company the bigger rice bowl– its market competitiveness on account of the competence andcapacity to perform when the economy recovers.Think about the bigger rice bowl. – CONNECT15
Ask EDC@SMaOur EDC@SMa team provides tips and advice tofrequently asked queries on various governmentschemes and funding.Question: What is Business Continuity Planning and why should my company have a BCP?Answer: Business continuity planning (BCP) refers to the advanced planning oflogistical programmes to help the organisation response, recover and resumecritical business functions after interruptions as a result of natural disasters, andother emergencies.A business continuity plan is a set of work plan, guidelines, framework, templates andtools designed to help your company better manage scenarios that may threaten theoperations and company’s performance.Today’s business environment is full of risks and volatilities. In order to stay incompetition as well as to recover after potential disruptions, companies must build astructure of resilience. Through BCP, the management gains insight pertaining to theorganisation’s strengths and weaknesses. This is also a tool that may help companiesin strategising or decision-making process.Question: What are the areas covered in BCP?Answer: BCP measures and evaluates the possible impact to the businesses, whichmay be quantified in monetary or qualified in reputation stakes. BCP also includesrecovery objectives, capabilities and requirements; and risk analysis of the internaland external environment. More importantly, it reviews and plans for resourceprovisioning and allocation.Question: How long will it take to complete a BCP?Answer: The amount of time taken to complete a BCP depends on the scale, complexityof the business or organisation, as well as the cooperation and commitment of youremployees in devoting time to assist in the development of BCP. The average timetaken is six months to one year.EnquiriesFor more information, please contact our EDC@SMa team at Tel: +65 6826 3020 orEmail: edc@smafederation.org.sg16
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Page 8 and 9: Tour & BBQ Networking @ APBThe SMa
Page 10 and 11: Singapore PackagingStar Awards 2009
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August 2009 - Singapore Manufacturing Federation

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