What Are The Issues That Have Occurred At The Cost Of Daycare

Today, more women are entering the workforce and they feel entitled for paid daycare services by the government. Corporate America feel a sense of responsibility in minimizing this crisis and both public and private sector must make strategic moves to address family issues that may affect their employees’ livelihood. Unfortunately, the government does not have the resource to fund such programs.

In the case: In 1988, Excel Industries, Inc. a window manufacture purchased Nyloncraft, Inc a molding company. Nyloncraft, Inc. a successful organization, offered daycare to their employees and had 162 kids enrolled in their learning center. The daycare was a success and provided 24-hours service, this minimized tardiness, absenteeism, and high turnover.

To offset the loss, they extended their services to the community families. The organization provided tuition discounts to nonemployees. The cost reached a quarter of a million dollars and only 7% of Excel employees utilized the program. The expense to keep the learning center was excessive and a decision had to be made by the chairman James J. Lohman. He was not able to find a buyer and obligated to provide a decision to the board of directors. However, Lohman had to make an ethical decision and effectively communicate to the nonemployee enrolled families the possibility of closing the center.

1. The case mentioned, as women enter the workforce they feel that there are entitled to get subsidies or help from the government or employers. Excel recognized the situation and provided a solution by opening a learning center for their employees. The organization valued their employees and the employees demonstrated gratitude by reporting to work and contributed to the company’s growth.

However, this moral obligation cost the organization millions and small quantity of employees utilized the facility. They appropriated a moral stance and recognized the family issues that will affect the organization production levels. But, had no obligation to provide daycare services for their

The organizations took into consideration the family issues, and the results provided a short-term solution. It addressed their employee’s absenteeism, turnover and tardiness. Unfortunately, the loss of employee participation forced the organization to expand their services to the community. In, an economic point of view, the organization supplied a daycare facility and the demand within the organization was low, resulting an increase in operation marginal cost and decrease in marginal revenue.

2. As, a single mother of two and a professional-I don’t feel that an employer is obligated to provide daycare services. The government does provide childcare income based child care subsidies, daycare income credit and 501c learning facilities at no cost. An organization has no obligation to provide daycare services to an employee. However, the company can be sensitive to parent’s concerns regarding daycare. The employees are an asset to an organization, in return the organization can offer cost saving benefits, competitive salaries, flexible hours, stay home opportunities and budgeting