CASE#1: MISHAP AT COCA- COALA: ( sourced from the Asian Institute of Management)

You are a newly-hired supervisor at Coca-Coala Company, a garment manufacturing

firm. You have previous experience as a supervisor, but in a biscuit manufacturing company.
Your job as supervisor is to direct and monitor the work of 12 workers in the production of Gut,
a line of shirts for teens. For the last two months at Coca-Coala you have faithfully done your
duties as follows:
1.Check the attendance of your crew.
2. Ensure proper observance of breaktime.
3.Monitor all causes of downtime (work interruption).
4. Coordinate with quality section to ensure that materials and products meet quality
standards.
Your crew are members of a cohesive group informally headed by Cora, a strong worker
with 10 years experience and high technical expertise. She has assured you of support when
you first met her and the rest of the group. Recently, however, there has been friction between
you and Cora which is affecting the rest of the group.
The other day, the junior manager of quality stopped your production at midday because the
threads you requisitioned from materials were not of correct color standard. The requisitioner
of the thread was Cora. When you tell her of the problem, she says, “That is not my fault. I
asked MMD for the correct thread and this is what they gave me.” You clarified this with the
MMD and the staff whom Cora transacted with said she informed Cora that the color of the
available thread is one shade lower than the required since the correct thread has not yet
arrived. Cora inspected the thread and said that the difference is not noticeable anyway. So,
she proceeded and got the thread.
More than fifty dozen shirts have been produced before Quality stepped in and halted
production. Quality also thought the finished products be considered ”defective” or “spoiled”.
Cora insisted that this need not be done because the color difference was very slight.
After coordinating with Quality, you reached agreement for a re-work of the shirts. When you
tell the group about this, Cora insists that you both talk to the manager in charge because the
workers would not want to work extra hours.

REQUIREMENT: Using the matrix below, Identify the problems in the case and present a
solution to prevent the same. Which management theory/ies would you adopt?

PROPOSED MANAGEMENT
ISSUES/PROBLEMS CONSEQUENCES
SOLUTIONS THEORIES ADOPTED
 Conflict within the  Tension within  Build Fayol’s Management
group the coworkers communication Theory
 Cora used her  Waste of time between the  This could be
authority to go with  Waste of management and adopted as there
where plan even if resources the team leader is a need to instill
this is not right  Overwork/Extra  Quality should be authority,
 Miscommunication working hours checked before organization of
within the junior the initial production,
 Salary cutoff due
manager to the coordination
to defective production
requisitioner within the
products  Instill authority
 No coordination coworkers, the
 Inefficiency as within leaders
happened when
products need to and the unity of
Cora decided to use
command within
another shade of
 thread be reproduced management the supervisors
 The quality wasn’t  Because of the  Resolve tension and leaders, and
checked at the initial attitude of Cora, within the the discipline of
production like not being coworkers leaders and
 Cora did not take honest it will  Communicate the workers of the
responsibility for produce bad and changes within company
what happened low-quality the production (Planning,
instead she insists to products. Cora Organizing,
and brainstorm
continue the
knew that thread about the project Commanding,
production.
is lighter than that they created Coordinating,
 Cora’s attitude is like
before, but she and make a Controlling)
dishonesty for her
insisted that it is comprehensive
mistake Follet’s
 Cora’s pride and ego okay but in fact it idea for
Management Theory
because of her is not. everyone’s  This could also be
experience of more  Cora’s decision benefits adopted as we
than 10 years about the thread  Controlling the should instill that
 Cora’s bad to be used can people by its power shouldn’t
leadership can cause affect the whole leadership, we be only with the
superiority management. It is can say that even leader and be
 Cora’s blaming domino effect if though Cora's is vested within the
others for her the decision is not 10 years in the company. The
mistakes good company, as a power should be
 Cora’s protected leader she needs within the
herself by more training or workers thus
blaming other seminars for her having a group
people, those to be always power to avoid
people who competitive tension
blamed by Cora
can result an Max Weber Theory
emotional of bureaucracy
damage and  This could be
miscommunicatio adopted as the
n towards MMD leader must have
the authority to
 Because of pride
lead, assign roles
and ego. It affects
and to create an
the whole
organization
company, making within the team.
them
disorganized. This Mooney’s
attitude is not Management theory
healthy in a  This could be
company that has adopted if they
a vision which is coordinate
to serve quality through unity of
products. command,
 We can see that emphasized the
Cora is 10 years in importance of
service, but strong executive
Cora’s has a bad leadership
exercised
leadership that
through a
can cause
hierarchical chain
confusion and
of command.
unorganized
teams.
CASE #2: MING HUA: Case application on Management Functions
In a village in Ancient China there was a young rice merchant, Ming Hua. He was one of six rice
merchants in that village. He was sitting in his store waiting for customers, but business was
not good.
One day, Ming Hua realized that he had to think more about the villagers and their needs and
desires, and not just distribute rice to those who came into his store. He understood that he
had to provide the villagers with more value and something different from what other
merchants offered them. He decided to develop a record of his customers’ eating habits and
ordering periods and to start delivering rice to them. To begin with, Ming Hua walked around
the village and knocked on the doors of his customers’ house asking:
1. How many members were there in the household;
2. How many bowls of rice they cooked on any given day; and
3. The size of the rice jar in the household.
Then, he offered every customer:
1. Free home delivery and
2. A service to replenish the household’s rice jar automatically at regular intervals.
For example, in one household with four persons, every person would consume on average two
bowls or rice a day and therefore, the household would need eight bowls of rice everyday for
their meals. From his records, Ming Hua could see that the rice jar of that particular household
contained rice for 60 bowls, or approximately one bag of rice, and that a full jar would last for
15 days. Consequently, he offered to deliver a bag of rice every 15 days to this house.

By establishing these records and developing these new services, Ming Hua managed to create
more extensive and deeper relationship with the villagers. First, with the old customers, then
with other villagers. Eventually, the size of the business increased and he had to employ more
people; one person to keep records of customers, one to take care of bookkeeping, one to sell
over the counter in the store, and two to take care of deliveries. Ming Hua spent his time
visiting villagers and handling contracts with his supplier, a limited number of rice farmers
whom he knew well. Meanwhile, his business prospered.

REQUIRED: Enumerate and explain the management theories that was used by Ming Hua
that contributed to the success of his business? (30 points)

Management Theories
1. Taylors Management Theory
- He gathered data from the villagers and asked how many household members are in
the family, bowls of rice they cooked, and the size of their rice sack. He then
developed an efficient way to sell his rice by making certain procedures like arranging
schedules of his deliveries, time by which he should deliver, and the incentives that
the consumers could get.
- In the first principle of the Frederick Taylor Theory, it is needed to develop a science
for each element of work. In this management theory, Minghua gathered objective
data and produced standardize policies and procedures.

2. Gilbreth’s Management Theory

- The time and motion study are very evident to his way of marketing his product. He
developed a schedule of his deliveries while reducing the motion needed to specific
 people are assigned to specific tasks. This results in efficient work and growth of his
profits because they follow a systematic way to manage his business

3. Weber’s Management Theory

- There are sets of rules and standards set by which he has a certain number of rice
bags to be delivered every 15 days. He also built relationships with his customers and
workers. He then kept an official record through his data gathering by asking each
household. Also, the division of tasks is observed which eliminates conflicts within
the task

4. Henry Fayol's Theory

- The idea of Human Relation theory is applied here. It is one essential management
theories in which a business focuses on maintaining positive relationship with its
worker, customers and other stakeholders to ensure the company overall success, In
general, this theory is concerned with employee performance and attitude, It is very
important role in motivating people towards the organizational goal, job
satisfactions and customer engagement, so as a Result it is evident that Ming Hua
was successful in managing customer satisfaction and developing customer relations