The Press Democrat from Santa Rosa, California • 40

E2 TNI PRESS DEMOCRAT, FRIDAY, NOVEMBER 1 0DD ROBERT LVJGTTZ: Kerkorian forces Chrysler review tl DEVESTING Stockholder demands changes Downsizing's toll on surviving employees Kerkorian's request for a seat on the board for former Chrysler finance chief York and two other members to be chosen by mutual agreement between Tracinda and Chrysler will be reviewed. oi, His proposal that Chrysler's anti-takeover defenses be relaxed to allow a single shareholder to control up to 20 percent of the company was rejected. ir'i Chrysler rejected a Kerkorlan proposal for a special committee to study the automaker's cash reserve needs, "which are best addressed by the full board of directors," Eaton said. I who has been keeping Chrysler on guard with demands for change both before and after making a failed takeover attempt last spring. Kerkorlan controls 14.1 percent of Chrysler's stock, worth more than $2.6 billion.

He contends the company's managers are too conservative in their cash policies, hoarding money that should be returned to shareholders. Chrysler also responded to several proposals made last week in a meeting between York and Chrysler executives. meetings between company executives and other large shareholders. "The meetings with our shareholders have convinced us that, while they are quite satisfied with Chrysler's performance and with our approach to corporate governance, we must remain committed to an ongoing dialogue and continuous self-examination," Eaton said. He said shareholders would be consulted by directors and senior managers doing the review.

Still, the move seemed to stem from pressure from Kerkorlan, IN BRIEF SQDSDGaESS employees as individuals. In response to the question: "How often does the company take action on employees' suggestions?" one in three workers said "never." The gap in perception between workers and managers is striking on this issue. Only 43 percent of workers believe their company takes action on employee suggestions monthly or more often, compared to 77 percent of managers. Here are "more voices from the work place" that indicate workers feel undervalued: "My supervisor very much lacks knowing how his employees feel; he is not at all sensitive, doesn't care how we feel, just works us like slaves, with no rewards." "My supervisor talks down to me with no respect; he doesn't know how or try to have a rapport with workers." Again, "My supervisor listens to suggestions, agrees that they are good, then does nothing with them," as a third worker sampled concluded. Managers say they value employees' ideas, but expect self-action: "Employees should cut through the red tape make more decisions on their own." "Hourly workers should take on the responsibilities that accompany participation in decision making," another manager said.

The survey summary showed nearly half the worker respondents believe change is not undertaken for their benefit, which Spitzer says "goes a long way" toward explaining why so many re-engineering efforts and other change initiatives have failed. "Without tending to people, managers have found it tough to move organizational icebergs." Spitzer concludes many executives simply don't pay attention to the fundamentals. "Managing people is a discipline. It requires a careful integrated approach to managing all the issues raised in the survey: from communication to behavioral consequences, from feedback to trust. Buried In the statistics about America's increased competitiveness (and profits) is a terrible toll in the attitude of the workers who have survived.

In the third of a continuing series of surveys on the impact of the corporate cost-cutting frenzy from Kepner-Tregoe entitled "People and Their Jobs: What's Real, What's Rhetoric," the consulting concern shows workers to be largely unmotivated, unrecognized and unrewarded. In a forward to its 34-page summary, Kepner-Tregoe CEO T. Quinn Spitzer Jr. says rhetoric concerning "high performance" organizations, empowerment, shared decision making, teamwork and other "notions" that conjure up images of Industrial democracy mask the human cost. he survey reveals that an 1 1 unsettling number of workers feel their fellow employees are not happy working for their current companies.

In fact, 42 percent of the workers surveyed feel their company does not value them as individuals. Just as frightening, only 51 percent of managers said the workers were valued. In a ranking of company priorities, workers and managers agreed on the top and bottom priorities. First was customer service and last was employee morale. Employees felt profitability ranked second while the managers put profits third after quality concerns.

Quotes: Worker: "What motivates me is knowing that perhaps someday I won't have to work for these people anymore. Manager: "I worry about not having enough people show up the next day to get the Job done." More voices from the workplace: "What motivates me is my paycheck. That is it at this point." "What motivates me has changed over the years; now it is just to keep my job." "Management says one thing, does another." Meanwhile, managers, while aware of employee lack of motivation and lack of trust, tend to offer solutions that are "vague and moralistic." "Employees should care more about the success of the company, and each one of them should get more involved in improving it." "I would like employees to improve their attitude, be more open, and give things a chance before being negative." "No matter what is happening (change, layoffs, etc.) employees should keep a positive attitude toward their job." Only 16 percent of the workers believe that when the company initiates change it is done with their best interests in mind. Nearly half (48 percent) believe that change is not initiated for their benefit, the survey showed. Over 40 percent of the employees who responded said their company does not value them as individuals.

About 50 percent of those managers surveyed also believe their companies do not value the tit Doff A may seek nationwide network BankAmerica Corp. quietly has been laying plans for a nationwide branch network. Since September, the nation's second-largest bank has applied to the Office of Thrift Supervision to open 270 full-service branches in all 50 states. Although banks that want to operate outside their home states face many restrictions, thrifts can do so more easily. Five years ago, Bof A acquired Benjamin Franklin Federal Savings Loan Association of Portland, for $162 million.

At the time, the thrift had 88 branches in Oregon and $2.6 billion in deposits. That acquisition gave Bof A the route to national expansion. Federal savings banks regulated by the OTS can set up offices in multiple states without the approval of local officials. By contrast, commercial banks face legal barriers to interstate branching and must win approval state by state. "We have no specific plans to operate branches in all states at this time," said Bof A spokesman Peter Magnani.

"But we will be developing plans and want the flexibility of full branching." Greenspan applauds budget efforts Federal Reserve Chairman Alan Greenspan applauded efforts Thursday to reduce spending and balance the budget, warning that the consequences of failure could be severe. Greenspan, an influential voice on economic policy, said the United States cannot count forever on foreign capital to boost investment. "Unless the budget deficit is brought down before foreign funds become Increasingly costly, domestic investment will be impaired, economic growth will slow and pressure on monetary policy to inflate could re-emerge," he said. New Internet access at UC Berkeley Later this month, UC Berkeley students will chose between the free Internet service the campus now provides (often busy between Internet prime time of 9 a.m. and 1 a.m) and a private service with Netcom On-Line Communication Services Inc.

The fee will be $14.95 per month, $5 less than what Netcom charges its commercial users. The university has tried to keep up by doubling and tripling its equipment, but has failed to keep up with demand. Not only are people interested in going on the Internet, but they are also on for longer amounts of time, said David Wasley, UC Berkeley's director of data communication and network services. "Our budget is shrinking to the point that to expand a free service is not an option," said Wasley. 30-year mortgages slightly down WASHINGTON Thirty-year, fixed rate mortgages averaged 7.44 percent this week, down from 7.45 percent last week, according to a national survey released Thursday by the Federal Home Loan Mortgage Corp.

On one-year adjustable rate mortgages, lenders were asking an average initial rate of 5.67 percent down from 5.73 percent last week. Tupperware soon to go solo ORLANDO, Fla. Tupperware Corp. won't spin off of parent Premark International Inc. until the middle of next year, but investors already are taking stock in the soon-to-be-separate company.

The deal could increase the value of their investment more than 50 percent by next summer, analysts predict, as Premark shareholders receive about one share of Tupperware for each of their Premark shares. Premark stock was trading around $45 a share before the announcement then jumped $4.50 Thursday to $50.25. Analysts predict that, after the split, Tupperware will be worth $40 a share and Premark about $30. Pacific Telcsis wireless merger talks In a regulatory filing, Pacific Telesis confirmed it recently has held "intensive merger negotiations" with the parent of San Jose-based V-TV about expanding its wireless cable business, The talks do not focus on an outright buyout but i acquiring wireless cable interests in several markets, most likely including the Bay Area. V-TV, whose parent is publicly held Videotron Inc.

of Montreal, serves some apartments and hotels in San Jose. Wireless cable allows consumers to receive cable TV programming via microwave signals, typically for less than $30 per month. It is less costly than providing cable TV I over phone lines and is becoming more popular with some Baby Bells. Press Democrat news services By MIKE McKESSON Associated Press DETROIT Chrysler responding to pressure from stockholder Kirk Kerkorlan, is launching a 90-day review of the way the company is governed and the makeup of its board. The announcement Thursday marks the automakers' latest response to Kerkorian's long campaign to force changes in its business.

The Las Vegas billionaire is Chrysler's largest stockholder. Chairman Robert Eaton said Thursday the decision to do the study was Influenced by recent Aircraft boost factory orders By JAMES H. RUBIN Associated Press WASHINGTON Factory orders rose strongly in September for the second straight month, spurred by rising business demand for big-ticket durable goods. But analysts said the gains were uneven and, on the eve of a key employment report, noted that rising jobless claims suggest softness in the labor market. The Commerce Department said Thursday factory orders climbed 1.5 percent in September on top of a 2.7 percent increase in August that was the biggest gain in nine months.

August orders were revised upward from an earlier 2.6 percent estimate. But analysts said much of the most recent increase was concentrated in aircraft, pushing transportation orders up 10.6 percent. Gains are not across the board and do not mean manufacturing is booming, they said. "Some sectors are doing very well. Others are struggling," said economist Astrid Adolfson of MCM MoneyWatch, financial advisers in New York.

"Consumer goods are very uneven." The Labor Department said the number of American workers filing first-time claims for jobless benefits rose by 6,000 last week to a six-week high. New applications for unemployment insurance totaled a seasonally adjusted 365,000, up from 359,000 during the week ended Oct. 21. The employment report for October will be announced Friday, with analysts expecting moderate payroll gains and a steady jobless rate of 5.6 percent. The yield on the key 30-year Treasury bond fell to 6.24 percent as bond prices moved in the opposite direction.

The bond market is encouraged by signs of weakness, hoping for lower interest rates. The Dow Jones industrial average closed up 41.91 points. While much of the gain in the factory report was in aircraft, the Commerce Department said communications equipment, business machinery and all metal products contributed to the rise. Orders for nondefense capital goods excluding aircraft, an important indicator of manufacturing strength, rose 7 percent in September on top of a 3 percent gain the previous month. But excluding transportation goods, orders rose a mere 0.2 percent in September, the fourth increase in five months, after a 0.9 percent jump in August Through September, all orders were running 7.6 percent higher than the first nine months last year.

Orders for durable goods. items expected to last at least three years, gained 2.9 percent on top of a 5.1 percent jump in August Electronic equipment rose 5.5 percent, nearly wiping out a 5.7 percent decline the previous month. New look By LESLIE SCISM DowJoacs NewsSerrkt NEW YORK Many life insurers are eager to experiment with new ways to compensate their agents, but few want to ban the current large upfront commission structure, blamed by some for abusive sales practices. Some of the largest insurance companies, including Metropolitan Life Insurance Co. and Equitable said in hearings begun this week by the New York State Insurance Department they are actively exploring new ways to pay New magazine in Fast Business news for younger audience By SKIP WOLLENBERG Associated Press NEW YORK A magazine hoping to become the "handbook of the business revolution" for the next generation of corporate leaders goes on sale next week from the publishers of U.S.

News World Report Fast Company magazine and its backers say it will more closely resemble magazines like Fortune that address business management issues than it will the newsy Business Week or the personal finance titles. But Fast Company is designed to appeal to a younger audience late 20s through late 40s than is typically addressed in other busi pitzer goes on to add that, "To the extent that organizations make a serious effort to acquire the "people discipline," they will move beyond the rhetoric to achieve significant improvement in performance." For the survey Kepner-Tregoe Inc. mailed 4,000 questionnaires to organizations throughout North America in the spring of this year. Half went to supervisorsmiddle managers; the rest to workers. Recipients were chosen at random from listings of middle managers, supervisors, administrative, and factory workers in the business organizations.

Survey results were based on analysis of the 1,516 completed questionnaires that were returned: 611 from supervisorsmanagers; 905 from workers. Robert Metz's column, distributed by United Features Syndicate, appears Wednesdays and Fridays. Industry Association also predicted world chip sales will climb 18.1 percent in 1997 and 19.6 percent in 1998. Some industry observers don't expect supply to catch up with consumers' needs for another couple of years. Gary Helmig.

an analyst at Soundview Financial, said IBM's latest announcement was no surprise because the Burlington facility's capacity is already booked through 1996. "I would expect to see more capital released (in the near future)," Helmig said. On Thursday, IBM said it will Invest about $1 billion at its facility In Essonnes, France, and $400 million at its factory In Burlington, VL Both expansion programs will start next year. IBM to invest $1.4 billion to expand chip-making plants Company to subscribe to such a publication. They prepared a 108-page prototype and printed 30,000 copies to show to potential readers.

IS They showed their research findings to Mortimer Zuckerman and Fred Drasner, who publish U.S. News World Report and the Atlantic Monthly. The veteran publishers decided to back the new magazine with an undisclosed amount of money and support from U.S. News. Zuckerman is chairman of Fast Company and Drasner is president and chief executive.

U.S. News is helping Fast Company sell advertising and get access to prime newsstand space as well as advising on circulation strategy, Taylor said. VS. News publisher Thomas Evans is also publisher of Fast Company. Webber and Taylor will ntn editorial operations from Boston.

-J boomers are more interested in investment products to help them In retirements than in death benefit policies. "Without the front-end commission, it would be difficult for agents to survive financially," John Tweedie, an executive vice president with Metropolitan Life, the nation's second-biggest seller individual life policies, told the regulators. One option touted by consumer activists is the levelization of commissions that is, spreading compensation over a decade or so. vj r- ness magazines. "People in their 30s and 40s are coming into power and are shaking up big companies with a fundamentally new way of doing business," William Taylor, a co-founding editor of the magazine, said in a recent interview.

But he said while others occasionally note the shift with a special section on a topic like information technology or an annual ranking of fastest-growing businesses, "there is no one living in it all the time." The magazine has been in development for two years. Taylor, 36, and Alan Webber, 47, Fast Company's other founding editor, had the idea. They had worked together in top editorial posts at the tony Harvard Business Review. They raised some money and tested the idea by asking selected readers by mail if they would like need, financed with cash value drained out of their existing coverage. The hearings were called to look at the relationship of commissions and churning.

The insurers, although open to new methods, are also reluctant to radically overhaul their compensation structures for traditional life insurance coverage because they worry it could cause further sales declines if agents leave the business. The insurers are already experiencing steep double-digit declines in sales of individual life policies, partly because aging baby at life insurance commissions Associated Press NEW YORK IBM Corp. announced plans Thursday to spend $1.4 billion on expanding its semiconductor plants in Vermont and France with hopes of keeping pace with explosive demand. Noting the increasing use of chips in products such as cameras, video games and TVs, IBM said it has committed more than $3 billion to expand its chip-making capacity over the next few years. IBM's announcement is the latest in a flurry of billion-dollar investments by chipmakers such as Intel Corp.

and Motorola Inc, who are scurrying to prepare for what many see as 8 long-term surge In demand for semiconductors. On Wednesday, an Industry group projected the global semiconductor market will grow by more than 26 percent in 1996 to $185.1 billion. The Semiconductor commissions. The state's strict rules on agent compensation tend to control much of the industry and a change in New York's rules could have a ripple effect The current rules, which allow a maximum first-year commission of 55 percent of the initial premium, were established in 1929 and haven't been revised since. Many industry observers and consumer advocates contend that the existing front-loaded payment structure encourages "churning," a practice under which agents sell policyholders new policies they often dont.