Apex Electronics

Jane Thomas, University of Michigan. Adapted by Irene Wong and Pris Rogers, for use
by Nanyang Business School, NTU, Singapore1.
Your Persona
You were hired just six months ago as an Administrative Executive. You report to Roger
Tang, Vice President of Apex Electronics (Singapore), a medium-sized electronics
company with around 160 employees. Located in Jurong, Apex Electronics (Singapore)
is one of several subsidiaries of Apex Electronics (International), with headquarters in
Dallas, Texas.
Background
Roger Tang was appointed two years ago to manage Apex Electronics (Singapore). He
reports directly to Al Miller, Senior Vice President of Operations for Apex Electronics
(International), who is located at the headquarters in Dallas.
Shortly after Tang took charge of the Singapore operation, he became aware of an
increasing number of complaints made by employees in the office regarding back pain
and arm and hand problems. As time went by, some office employees needed medical
treatment for these problems. In his first year alone, out of 35 office employees, three
were treated for back problems and another two for carpal tunnel syndrome2, with one
requiring surgery. In addition, a high percentage of the 110 production operators were
complaining loudly about the uncomfortable work environment, specifically about the
harsh lighting, dull green on the walls and uneven cement flooring.
Tang brought in a consultant to review the situation. After interviewing employees and
analysing the work environment, she recommended a change in the office furniture and
computer equipment, which the company had purchased cheap more than five years
ago. Chairs should be ergonomically designed and computers should include
armrests3, she reported to Tang. However, these improvements would not be
inexpensive: each office chair and computer armrest would cost about $500 and $80
respectively. Some desks would have to be replaced as well. The estimated cost for
purchasing 35 office chairs, 35 computer armrests and 10 desks would be $30,000.
The consultant also thought that the lighting, wall colour and uneven flooring were
problematic. Generally, people dont realise that these things matter greatly when it
comes to employee morale, to say nothing about the related health issue involving eye
1

Modifications have been made to the adapted case to match current economic conditions.

Carpal tunnel syndrome is a common problem that affects the hand and wrist. This condition or
syndrome, has become the focus of much attention in the last few years due to suggestions that
it may be linked to occupations that require repetitive use of the hands such as typing. In reality,
there are many people who develop this condition regardless of the type of work that they do.
3

A computer armrest can be easily attached to a desk or table. It is designed to reduce the
likelihood of carpal tunnel syndrome by maintaining the wrist in proper alignment while one uses
the mouse. It is also used for the purpose of reducing stress on the neck, shoulder and elbow.

care from working 8 hours under harsh lighting. Furthermore, walking on an uneven floor
can be a safety hazard. However, lighting, a new coat of paint and a new flooring would
be costly - approximately $10,000 for the lights, $25,000 for the coat of paint and
$40,000 for a new flooring, she admitted. But, she argued, there will be indirect
benefits to these upgrades, benefits that you cant measure but which will impact the
bottom line positively.
Tang agreed that the benefits (if only in employee morale and comfort) were worth the
cost. He took the opportunity of speaking to Al Miller about the proposed upgrades when
he was in Singapore to attend a conference. Tang also asked Miller to approve the
expenditure for the improvements.
Unfortunately, Al Miller did not see a pressing need for the expenditure. Shown the
consultants report, he dismissed it for lack of evidence and stated that he was tired of
hearing ungrounded employee complaints. Miller was not convinced that the employees
actual problems could be clearly attributed to the office furniture and lighting. He
laughed heartily when told the wall colour was bad and said, We just gave it a fresh
coat of paint, didnt we? He wasnt vehement, however, and might have supported
Tangs proposal if money for the upgrades was readily available. Instead he said, The
company is recovering from the global financial crisis and while things are improving, all
eyes are on the budget to ensure that we are on track for a full and solid recovery.
Forget about the upgrades, for now at least. So Tang set the information aside and
hoped for the best.
During Tangs second year in Singapore, the number of employees with back, arm, and
wrist problems increased. Two more office employees underwent carpal tunnel surgery,
and another three were experiencing back problems. More production operators were
also complaining about the poor working conditions with an increasing number of
workers taking medical leave, thereby reducing the day-to-day productivity of the
production unit. Tang heard from his human resource executive that the insurance
company for Apex Electronics (Singapore) was threatening to raise its premiums
because of the increase in employees medical costs.
Consequently, Tang decided to call Al Miller to inform him that the poor working
conditions issue was not going away and asked him to reconsider his decision.
However, Als answer was still no. I dont know how many cases you are talking about
or their severity, he said, but we dont have money to burn these days. Cant you buy
some pillows for their chairs or figure out something a little cheaper? Get creative:
maybe you can have a paint a mural contest to make the atmosphere better?
Tang had considered alternatives and had even asked employees to come up with
suggestions, but none of their cheap homemade remedies really solved the problems.
For the office workers, he even scheduled two additional short breaks and tried
instituting an afternoon stretch session, using a video hed seen on Singapore Airlines.
As for the latter, it was good for a laugh, but little else.
Current Opportunity

One month ago, the headquarters in Dallas underwent a major re-structuring and, two
weeks later, the new Chief Operating Officer, Barry Ross, sent an email to all
subsidiaries, informing them that the company had some available funds from this
financial year to accommodate additional expenditure. Hence, he had formed a
committee to consider reasonable requests for the funds. Requests were to come
directly to him via email.
Tang was excited to get this message and immediately sent an email to Miller to see if
he would object to a request for office improvements. Miller said that he wouldnt stop
Tang; however, Miller himself was considering proposing the money be used for training
and software upgrades. I see no reason why we cant submit two or even more
requests, Miller responded charitably. Youve been chewing on the office upgrade idea
for so long, Im certainly not going to stop your attempt to convince the big boss, he
replied.
Believing it was now or never, Tang decided to go ahead because he felt so strongly
about the issue. He spoke to several office suppliers to update the price on the furniture
and the other forms of upgrade needed. This gave him an unpleasant surprise because
chairs like those recommended by the consultant would now cost $700 each and
changing the lighting would require another $5,000 because it would need some rewiring. This did not deter Tang. Instead, he became even more determined to proceed in
presenting the best arguments in a persuasive email to Barry Ross.
Tang has set you the task of garnering the best evidence and analysis to write solid
arguments for issuing money for upgrades for both the office and the factory floor.
Your Task
Assume the role of an administrative executive reporting to Roger Tang. Draft the
persuasive email on behalf of Tang for him to send to Barry Ross. In the email, make a
request for money to pay for the improvements.
Construct your arguments carefully, using the data provided in the case, and inferences
you can draw from the data.