Background of the study

“I do not believe in organization charts or position descriptions of any kind in this

company,” declared Johnny Ramos, president and founder of the Power Company,
manufacturer of men’s ready-to-wear (RTW) suits and jackets. “We are a successful and fast-
rising company where I want all managers and labor to work as a team. Organization charts
and job descriptions make people believe they own a position on a chart and want to keep it.
We grew from a small company with P100,000 annual sales to a P5 million enterprise
because we pooled our resources, coming up with competitive products at low costs. We are
not San Miguel Corporation with its complex organization charts.”

Mr. Silang, the company comptroller, strongly defended the president, emphasizing
that teamwork, not organization charts, is the key to success.

Linda Ignacio, head of manufacturing, believed otherwise and declared the president’s
view “absurd and unprogressive.” Ms. Ignacio said, “I could not run my department without
organization charts and position descriptions. As a matter of fact, I have them hidden in my
desk where Johnny Ramos never sees them!”

1.0 Time Context

At present time

2.0 Viewpoint

Linda Ignacio – The Manufacturing Head viewpoint

3.0 Statement of the Problem

Conflicting viewpoints regarding organizational structure

4.0 Statement of the objective

 To establish a higher degree of the company’s organization

 To assist Mr. Johnny Ramos and Mr. Silang in understanding about the
importance of organizational chart
 To create responsibility and to distinguish the authority
5.0 Areas of Consideration
5.1 Internal Environment

Strengths

 Teamwork
 Competitive product at low cost
 Fast – rising company

Weaknesses

 Less strategic alliance

 Absurd and unprogressive
 Decision making

5.2 External Environment

Opportunities

 Clear definition of responsibilities

 Delegation of task

Threats

 Overreached by other companies

 Innovation of competitors product

6.0 Alternative Course of Action (ACA)

ACA 1: To empower the company through effective and efficient organizational

structure.

ACA 2: Introduce the significance of organizational structure to Mr. Johnny Ramos and
Mr. Silang.

ACA 3: Organize a seminar with the main purpose of realizing the essence of
organizational structure towards the achievement of proper management practices.
7.0 Analysis of ACA

ADVANTAGES DISADVANTAGES
ACA 1: To empower the More defined organizational It takes planning to achieve.
company through effective structure.
and efficient organizational
structure.

ACA 2: Introduce the Emphasize how As they are the company’s

significance of organizational organizational chart aid Ms. top executives, it may seem
structure to Mr. Johnny Ignacio in running her rude or insulting on their
Ramos and Mr. Silang. department. part.

ACA 3: Organize a seminar A perfect venue for changes It requires time and effort to
with the main purpose of and improvement. achieve it.
realizing the essence of
organizational structure
towards the achievement of
proper management
practices.

8.0 Conclusion
8.1 Decision Matrix

3- very satisfactory 2- satisfactory 1- less satisfactory

Objective 1: To establish a higher degree of the company’s organization

CRITERIA ACA 1 ACA 2 ACA 3

Effectiveness 3 2 3
Attainability 3 3 3
Usefulness 3 2 3
Timeliness 3 3 2
Total 12 10 11
Objective 2: To assist Mr. Johnny Ramos and Mr. Silang in understanding about the
importance of organizational chart

CRITERIA ACA 1 ACA 2 ACA 3

 Relevance 3 2 3
Effectiveness 3 2 3
Attainability 3 2 2
Timeliness 3 2 3
Total 12 8 11

Objective 3: To create responsibility and to distinguish the authority

CRITERIA ACA 1 ACA 2 ACA 3

Efficiency 3 3 2
Relevance 2 3 2
Effectiveness 2 3 1
Timeliness 3 3 2
Total 10 12 7