ORGANIZATION & MANAGEMENT

LEADING

Learning Activity 1. Kookaboora Container Corporation (Maybe Tomorrow)

When the Clark Special Economic Zone in Pampanga opened its gates for investors in
light and medium enterprises, the Kookaboora Container Corporation (KCC) was among the
first ten companies to locate in the zone’s premises. KCC manufactures containers of various
shapes and sizes which are used by manufacturers of industrial chemicals, food products,
cooking oil, motor oil and others.

The production department of KCC is headed by Engr. Nicolas Aisporna, a licensed

mechanical engineer. He is a tickler for discipline. When even small mistakes happen in his
department, he personally calls the offending employees and metes the appropriate penalty. As
a result, his department was judged best in efficiency. Very minimal wastages in materials and
time were recorded by the department.

Under the direct supervision of Engr. Aisporna are 10 supervisors who are graduates of
engineering courses and with an average of three years work experience. Ten workers report to
a supervisor. All of the workers are high school graduates. All employees including the
supervisors and the workers are paid on a monthly basis. The workers, however, are required to
produce a minimum number of units per day.

During slack seasons, workers are engaged only from 50% to 75% of their normal
working hours due to lack of sufficient job orders. No worker is laid off by the company and
everyone receives full pay. This is so because of the strong recommendation made by Engr.
Aisporna to the top management. Slack seasons last up to three months. At the fourth month,
job orders begin to pour in and everybody starts to cover 100% of their working time.

On the seventh month of the current year, orders were received at more than the normal
capacity of the company. For the first time since the company began operating, the department
will be required to work overtime. No additional compensation will be given except for three
meals in the evening.

When Engr. Aisporna called the department’s entire workforce to a meeting, he

explained the importance of accepting the additional orders and working on them on overtime.
He said he is expecting everybody to lend a hand in the additional effort. He said he is
expecting everybody to lend a hand in the additional effort. When he asked for comments, only
one indicated his availability. Engr. Aisporna could not believe the cold response of his
subordinates.

As the hours pass by, the anger felt by Engr. Aisporna gets deeper and deeper and he
thinks he can no longer contain it. He was thinking aloud:
 “What kind of people are these? During periods of less work, they are not laid off; and
they don’t think of it as a favor! They could not reciprocate management kindness!”

QUESTIONS:

1. What is it that Engr Aisporna failed to recognize in this case?

2. What immediate solutions may be used to solve the problem? What long term
solutions must be put in place?