I.

CASE SUMMARY

Engr. Romeo Estabillo decided to organize his own construction firm after passing civil
engineering board exam in year 1981.He started accepting contracts for construction of
residential houses, then slowly his clients grow in number.
At first, he has two assistants. One is Mr. Silvino Santiago, whose task was as draftsman
and to assist Engr. Estabillo in supervising workers at the various construction sites. The other
one is Mr. Romulo Mamaril, who was assigned to coordinate purchasing, bookkeeping, and other
related administrative activities.
At the third year of operations, Engr. Estabillo was already directing operations in his
newly constructed office inside his residential compound. By this time, 2 more female employees
were hired to assist in the various tasks performed in the office.
By 1994, Engr. Estabillo already has six full-time civil engineers, two draftsmen, ten
administrative personnel, one messenger and one security guard.
By June 1996, he felt that business was continuously growing, so he will have to secure four
additional civil engineers on a full time basis. He was hesitant in his decisions for he feels that he
may that be able to perform his functions since he was directly supervising all operations. With
these thoughts, he pondered on how he will go about solving the problem.

II.

OBJECTIVES
Help Engr. Estabillo decide whether he should secure four additional civil
engineers on his firm.
State the Pros & Cons in hiring four additional civil engineers.

III. POINT OF VIEW

Civil Engineers can carry out business with a wide variety of clients, providing necessary
services that make cities run smoothly and keep building upright. But is hiring an additional four
civil engineers in a full-time basis worth the risk to a growing construction firm like Engr.
Romeo Estabillo has?
The fact that he was directly supervising all operations in his firm; itll be an additional pain
in the neck for him to add additional civil engineers. On the other hand, hiring them would be of
great help as for his continuously growing firm.
Dr. Thomas C. Schlefeir, a consultant and author of Construction Contractors Survival
Guide, once quoted; While Im not anti-growth, growth has been associated with most of the 10
common element of contractor failure. This statement would simply imply the risk you have to
take after making a simple decision with regards to your growing business. If you begin to take
larger jobs as method of growth, all of these jobs are simply larger than those youve done

before, and theres additional financial risk. However, if you take traditional job of the same size
youve been doing, youre taking work you commonly do and youre comfortable with.
You might feel that your business his continuously growing, but as a business man, you must
not only rely to that feelings. You have to conduct first a thorough review on your firms status.
Check first if it is really gaining profit intensively, then thats the time the decision process will
comes in.
Supervising all operations on your own firm is a very effective strategy in managing your
business well. But if your business is really on track of growing, it would be advisable also to
hire someone who will do that job instead. Someone you think has the capability of doing it so
and someone you can trust and rely on. Itll lessen your burdens and itll give you an opportunity
to focus on the things you need to improve within your firms system. You can also ask your
employees suggestion as to whats their opinion with regards to that problem.
If a company has been stable for a while and profitable, then to grow and do more of it makes
sense.-Schlefeir

IV. CASE ANALYSIS

Advantages in hiring Four Additional Civil Engineers

More clients can be accommodated by their firm

Can lessen the duties and responsibilities of his present six full-time civil

engineers
Increased in profit due to increased in clients

Disadvantages in hiring Four Additional Civil Engineers

Additional cost for the 4 civil engineers salary.

Larger scope of things to supervise as for Engr. Estabillos side.
Financial risk

If Engr. Estabillos firm is really earning profit well and is continuously growing, it
would be best for him to hire four additional civil engineers. Aside from it will bring more clients
to his firm, it will also be an additional profit for his firm. Taking risk is an essential in a growing
business. If he wants his business to expand and to be successful, he should be strong enough to
take the risk. With regards to his problem if he can still supervise all operations in his firm,
proper organization of works would be the best solution for it. If he cant accommodate to
supervise all operations, why not hire someone to do it so? Hiring a supervisor who is qualified
enough to do that job instead would be his best solution to that problem.