TANDUAY BUILDERS CO.

Benjamin Go, general manager has just ended a personal discussion in his office with his
assistant, whom he relies frequently before he makes decisions on major issues. He gets very
reliable date from his staff assistant, Joseph Estabillo.
“I hope I have given you a clear picture of where TBC stand as of now, “ Benjamin Go,
general manager, told him. (TBC is short for Tanduay Builders Co.). “It’s not we expect, but I
believe things could be better in a year or two. Right now, I think we are well positioned to bag
some good jobs, i.e. if the new jobs our chief architect and his team are working are any
indication,” he assured Joseph who serves as his administrative engineer, a position that will be
renamed “ Assistant to the General Manager” shortly.
Joseph Estabillo, a 1956 civil engineering graduate of National University, has been with
TBC for over five years. Before that, he worked for a year in a local construction-engineering
magazine publisher as Associate Editor—his first job after graduating from NU. He got it through
the Engineering School Dean because of his extensive campus journalism experience.
TBC, a design-and-build contractor, is a registered partnership between Benjamin Go who
graduated from UP (BSCE degree) and his younger brother who runs full-time the family’s lumber
business. So, the brother is never involved with TBC operations.
During the discussions, Joseph listened to his boss who spoke every word so confidently.
“Sayang, if I could only do the same,” he thought,” my own dilemma would be easier to handle.”
He met his boss that early morning to ask some questions that involve his career in the company.
“Ben, I have been meaning to see you lately. I had a couple of questions to ask you personally.
First, considering on my current position and extensive field experience in building construction,
how high can I go up in the organization? Secondly, do you plan to make TBC a corporation in
the near future?”
Indeed, Joseph Estabillo got some answers to his questions that were not good enough.
The replies were rather vague and conditional that he did not appreciate so well. His boss’ answers
were prefixed with big “Ifs”. Some examples: “If” we succeed in carrying out my plans, you
expect a good promotion that entitles you to the use of a company vehicle. “If” our company will
achieve its near-term goals and objectives, your income would be greatly boosted in a couple of
years. “If” all this happen, the company may be incorporated in due time.”
Joseph came out of the meeting with more questions than answers, in his minds. He came
out with big doubts hanging like Damocles’ swords in every turn of his career path. If his brother-
partner dies, TCC also dies. (Joseph has read that a “partnership” automatically dies when any
partner should pass away). He asked, should that eventually happens, what would happen to the
firm’s employees who might have already served 10, 15 or 20 years with TBC?
These were doubts and questions that refused to leave Joseph’s mind. As he went home
late evening that day, he thought of some events that happened as recent as a year before. The
staff of TBC knew the prospects of any project for TBC were neither so bright nor forthcoming.
While jobs had not totally dried up, negotiated projects had been greatly cut back. Also, the
volume of bid projects had decline substantially—for economic reasons. Joseph’s last project was
a warehouse-office building owned by a former classmate of the GM at the UP College of
Engineering. The GM got the project on negotiated basis.
While staff cuts at TBC had not happened yet, building contracts had been slumping, and
so with profits. Now Joseph, who has a reservoir of expertise in project management, purchasing,
and critical path method of scheduling, thought and understood why to much hope is being placed
on project under negotiation.
He had sat down through all these long negotiations and meetings. He knew how difficult
the problem of prices, quality, and delivery schedule had to be resolved on a win-win solution.
The next few days were even more hectic rounds of meetings and discussions with the
firm’s own suppliers, subcontractors, and estimating staff.
The GM explained how important this particular building project was to the company.
“If we have something to show in this one particular project, next year we can really go
all-out for more projects as contract administrators,” the GM said, adding we would bring our
expertise right to the doorsteps of prospective client-owners who have regular projects.
This explains why TBC is relying so much on our in-house expertise construction and
project management—especially on Joseph Estabillo’s expertise in the critical path method of
scheduling to meet the tight schedule of the projects the company are negotiating.”
But Joseph was still worried that it might be too late for the company to expect instant
recovery and triumphs through this one big contract. He thought there was lack of enough overall
planning and direction at the top. He knew his ambition was still urging him to plan for his future
and career path.
On Wednesday, he received a phone call from Philip Javier, assistant vice-president of a
large American engineering-construction company. Could he meet him at his office on Friday, to
discuss something important? Joseph suddenly remembers having earlier his response to a
“Wanted Ad” placed by the U.S. Company agreed. He was happy at a brief escape from the hectic
meetings and negotiations at TBC.
Javier came straight to the point. He asked if Estabillo might join his company’s general
contracting division as supervising staff engineer, because of its growing projects in the U.S. Bases
at Clark Field in Pampanga. Javier was the man overseeing a major rehabilitation of staff houses
at Clark. This rehab job was their first ever-major building job, since their firm was essentially an
engineering and industrial construction outfit.
Joseph asked for time to think it over and would advise Javier by next Friday with his
verdict. That night he discussed the job with his family, and told them this yearly salary will be
P4,800 over and above the P4,200 he’s making in his present job.
“When I start working in a U.S. company, there will be a chance for me to increase my
take-home pay.. I would be entitled to work unlimited overtime, as I was informed during my
interview,” he added. He checked with an engineer, who confirmed the information, as well as
the prospects of promotions at the U.S. company.
The rehabilitation of staff houses at Clark Air Base, costing at more than $1.2 million, was
a stepping stone to further opportunities on a personal basis.
Joseph took stock of his career with TBC again. He was now in his early thirties and had
worked for TBC more than six years, starting construction engineer. In those years, he was
promoted to project manager to administrative engineer and assistant to the GM. He enjoyed his
work at TBC though he felt his salary was less than generous.
All this had reminded him of his key role, more so now as he got an attractive job offer.
But he had no illusions about his being indispensable. In the short term, his departure
might hurt TBC however. His administrative work would suffer a delay, may be until a new man
(replacement) worked himself in.
 This could also be critical in TBC’s weak position. There would also be a psychological
effect—his leaving might be interpreted as an ominous indication that his company’s hope for
recovery was impossible.
Yet, he needs to protect himself and to ensure his future career. If TBC went under, he
would have to take his family (his mother and younger sister) back to square one,i.e., re-start his
professional career at another new employer. If he takes the new job at the American firm, he
would have to start all over again, face new challenges of his professional career path.

QUESTIONS:

1. Applying the principles and concepts of personnel management you have already
learned, what advice can you give him?

2. What can you say about the so-called “indispensability of an employee”? Explain.

3. In case he decides to accept the new job, what are his chances of a successful career at
the American Company?

4. At a time when TBC is depending on him, Joseph receives a good, attractive job offer
from the U.S. Company. Should he go?