Case 6.

OSPA CONSTRUCTION: I’ll be back

Mr. Oscar Pascua hired his niece Ofelia to help him manage his construction business. He
assigned Ofelia to do administrative work. She enjoyed doing the various tasks she was ordered
to perform. Positive interaction with employees kept Ofelia busy and contented with her work.
She thought engineers, foremen and construction workers are people who easily understand
instructions. For instances, when she asked them to fill out the forms, she distributed to each one
of them, they complied without much fuss.
Mr. Pascua has a sister; Milagros and she is operating her own entertainment business. It was in
her fold that some big stars in movies and television got their training and involvement in the
world of show business
When Milagros saw how orderly the administration of Oscar’s business was, she asked Oscar if
she could borrow Ofelia for a while. Obviously, Milagros wanted the administrative aspects of
her business straightened out.
Ofelia was only too glad to join her aunt Milagros. She thought that after doing real work, she
needed a break from her stint in the construction business.
When Ofelia began to work with her aunt, she finds out that there are many things she should
attend to. For instance, employee records are not complete and company policies and procedures
are not well documented, As a result, it is difficult to determine employee performance.
When Ofelia distributed the required forms to the employees and the talents who are undergoing
training, she notices that they were not too eager to accomplish them. After two days, the janitor
approached her and asked if she would dispose the contents of the wastebaskets even if the form
she distributed are in them.
Ofelia tried hard to contain her anger. After a while she regained her composure and asked
herself, “What kind of people are they? I wish I’m back at my former job.”

QUESTION:
1. Do you think the situation is hopeless for Ofelia?
2. What will be your advice to her?
Case 7. HIT AND MISS MANUFACTURING: A Star is Born

The head of HR department, Atty. Mila Bravo was directed by the company president to act as

leader of a committee whose task is to revise and update the current compensation scheme of the

company.

The President designated the following as members of the committee:

1. the accountant

2. the executive secretary

3. an employee in one of the operating units

4. an officer of the labor union

5. the internal auditor

6. a representative from the public

During the first meeting, the seven members were all present. The president made a briefing

regarding the purpose of the group, the circumstances that lead to the formation of the group and

his expectations about the group’s output.

The group proceeded to determine the various factors relevant to the determination of the

rates of the various jobs. Most of the members of the committee, however cannot devote the time

required to finish the job within the time frame indicated by the president. It turned out later that

it was not only time that hinders the committee’s effectiveness. The first two meetings were held

without much fuss. Everybody wasa given the opportunity to air his or her views about the

various matters forwarded for discussion.

For one reason or another, the accountant failed to appear in the succeeding meetings. He

never attempted to explain his position to the committee leader or to any member, but his body

language indicated that he was too busy doing more important concerns for the president and the

board of directors. He tried to communicate with the public representative asking for information

about developments in the committee work. Outside of the meetings, he indicated to one member

his objection to some of the matters that were deliberated and approve by the committee. As the

meetings progressed and without his active participation, he made piecemeal reports to the

president

When the committee submitted its final report, the president was satisfied and he voiced his

objections that were clearly the objections of the accountant.

The other members of the group were dismayed about the actions of the accountant and they

vowed not to participate again in whatever committee work here the accountant is assigned as a

member.

QUESTION:
1. What errors have been committed by the committee members? By the members?

2. Who should be held responsible for the errors?

Case8 KNIGHTS OF COLUMBOS: STRANGER ON THE HOUSE
Ernie is a very likable person. When he passed the board examination for electrical engineers as
topnotcher, he applied for a teaching job in the state university where he obtained his bachelor’s
degree. He and some former classmates were hired by the university
Ernie enjoyed teaching and its was in the course of his employment when he finished his
doctoral studies in engineering. He was elected vice president of the national association of
electrical engineers. Within ten years, he was appointed dean and then vice president of the
university. After twenty years of excellent performance in his job, he was installed as president
of his alma mater.
It was not very hard for him to perform the job of the president because of his long years of
association with the university, first as a student and later as a professor. Some of the professors
occupying critical position are his friends. His subordinates think of him as one who is not only
respected in academic community, but one who is fair and honest in his dealings with people.
They supported him in many activities and projects including the social affairs he sponsored.
During his term, the university enjoyed a period of academic excellence.
A few months after Ernie retired from the university, he was elected grand knight of the knight
of Columbus. His position is the equivalent of the CEO of a private firm. He was very
enthusiastic in his first month in office. Later, he found out that managing the council is not as
easy as managing the state university.
Of the 200 members of the council, not more that 30 are regularly attending the monthly
meeting. Ernie finds it hard to improve the number of active members. He could not even get the
required numbers to attend the necro logical services for deceased members
Ernie is not thinking hard to find solution to his problem.

QUESTION:
1. What could be the reason why Ernie is not very successful in his current position?
2. What must Ernie do?
Case 9 SWALLOW MARKETING CORPORATION: THE LONG AND WINDING ROAD
Mr. Rudy Castelo was hired by Swallow Marketing Corporation as counter sales person of San
Fernando branch six months ago. His official working hours begins at 9:00 AM and ends at 5:00
PM from Monday to Friday. It is almost always that he serves customers till 6:00 PM. He does
not complain and he feels happy that his unit is performing.
An evaluation of the number of units sold by Rudy’s unit indicated a 50 percent increase for the
past six months. That period coincides with the period that Rudy had been working for the
company.
There were four sales person in the branch who were able to sell 80 units of the company’s
product during the six months prior to Rudy’s hiring. When Rudy came in, he sold 40 units and
the other four duplicated their previous six months’ output. This brought the total sales of the
unit to 120
The four sales person have been working for the company for over two years and each receives
monthly salary of P20,000. As a new recruit, Rudy’s salary is pegged at P11,000 per month.
Rudy can only hope for an increase after salary reviews which are made by top management
every 2 years
After six-month stint, Rudy has only become entitled to the only benefit, the 13th month pay. He
has yet to earn his vacation and sick leave benefit
Rudy’s supervisor is happy that his unit was able to sell more with Rudy’s help. His concern now
is to keep Rudy fully motivated and to keep the competitors away from hiring him.

QUESTION: If you were Rudy’s supervisor, what will you do?

Case 10 TSAR NICHOLAR TRADING AND FINANCING: LET IT BE ME
The business established by Mr. Eduardo Nicolas started small buy within 20 years, it grew into
an appliance trading and financing enterprise with 60 branches manned by about 2000
employees.
Mr. Nicolas believes that the spoken word is more powerful that the written means, and he
speaks directly with any of his subordinates for what ever he wants to communicate. His
business is effectively a single proprietorship, and as such, he decides on issues whether major or
minor
Mr. Nicolas stays close to the fiver senior managers who comprise his operation team. He meets
them at least once a month and talks to any of them every now and then through the medium of
cell phone. These managers report directly to him. An executive assistant helps him in the
various requirements of his job, including coordinating the activities of the senior managers.
The business consistently maintains an informal approach in the management of its activities. No
clearly defined units are introduced unless they are deemed to be absolutely necessary. The
current organizational structure consists of the following:
1. A legal office headed by the legal officer and assisted by seven employees
2. Accounting department, auditing department and finance departmentwith a total
personnel complement of 208 employees. All three departments are manage by the
comptroller.
3. Treasury department wih 199 emplees headed by the company treasurer. Attached to this
department are the auxiliary units like security and housekeeping.
Each branch maintains its own sales unit but there is no marketing department at the higher level
to oversee the sales activities of all branches.
The head of the various department situated in the head office, the five senior mangers and the
60 branch managers are responsible for recruiting and training employees at their perspective
units. There is no central HR department to oversee such activities. Recruitment and training are
done with minimal paperwork. Employees are hired without the benefit of job description and
job specification. Communication is mostly verbal.
The structure adapted by the firm has produced good result however, this organizational
approach is responsible for making the company grow from a single branch operation to its
present status. The company’s operations are generally regarded as profitable.
Employee turnover reach an average of 30% buy Mr. Nicolas is not much concerned because of
the sufficient number of applicants applying for work in the company.

QUESTION
1. What do you think of the organizational structure of the firm?
2. What difficulties may be anticipated if the current structure is maintained?
Case 11 PERFECT TASTE BAKERY PRODUCTS: RUN FOR YOUR LIFE
Perfect taste bakery products is a company that is already on its 12th year operation. A line of
bakery products manufactured by the company is delivered to the different marketing outlets
located in five provinces of Luzon.
To facilitate delivery of its product, the company maintains fifteen mini truck. Each delivery van
is manned by a driver and a helper who are both salaried employees. Products are delivered
twice a week on each outlet
For the past 12 years the company appeared not to have been affected by any conflict either
between management and employees or between employees. This has been so until just recently
the drivers and the helpers of then delivery vans went to see the general manager. They
denounced the manner by which the dispatcher makes delivery assignments. They complained
about the easy routes assigned to drivers whom they thought to be the favorites of the dispatcher.
One of the complaining drivers mentioned that he discovered that the five drivers and the
dispatcher are members of a certain fraternity, another driver is also complained that the newer
vans were assigned to the favorites. Some other issues were also mentioned. One of these is the
questionable performance report of the dispatcher which indicated high ratings for the favorites.
The complaints are agitated and they became more more angry when they were inform of the
performance-based salary adjustments scheduled within 30 days
The general manger promised that he will do something. After a month, there was no indication
that the general manager did anything about their complaints. The complainants, however
noticed that the dispatcher has changed his behavior towards them. He became more strict with
them. It was then that they began to harbor ill feelings toward dispatcher. They began to talk
about how to get even with him

QUESTION :
1. Do you think a conflict is already existing?
2. What should have been done by the dispatcher? By the general manager?