PAMANTASAN NG LUNGSOD NG MAYNILA

Graduate School of Business

SY 2014 2015

ORGANIZATION AND MANAGEMENT

CASE Analysis
ABC Company

Submitted by:
Jaclyn Grace De Castro
Celia Elemia
Judy Ann Manuel
Nenita Rabot

Submitted to:
Dr. Neri Pescadera

Date Submitted:
05 October 2014

VIEW POINT: From the view point of Mr. Robert Cruz, Shop Manager
TIME CONTEXT: After the assumption of Mr. Robert Cruz as the newly appointed
Shop Manager

I.STATEMENT OF THE PROBLEM

Workers are not committed to work in order to meet the contract delivery
dates.

II. STATEMENT OF THE OBJECTIVES

To motivate the workers to work effectively & efficiently within five months.

III. AREAS OF CONSIDERATION

INTERNAL ENVIRONMENT
Strength
Countrys producer of top quality
steel products

Weakness
Production control is the worst
problem
Schedules are not being met
because:
a. targets were unrealistic
b. shifts in manpower
requirements were not
anticipated,
c. no consistent follow-up on
policies
d. machine scheduling was so
poor

Skilled workers: welders, cutters &

steel workers

The labor and material estimates

had been inaccurate

Operation and Production managers

working in an effective system of
production control

Shortage of skilled manpower in

Fabrication shop

Workers can work on overtime

Lax in implementing company

policies and taking disciplinary
action against the workers. This led
to employees attitude problems.

Robert Cruz performance in the

Old timer workers lack of trust on

Quality Control Department had been

excellent.

their newly promoted shop

manager.
Supervisors are too old to become
subordinates and were not able to
discipline workers.
No supervisory training
Workers are not producing best
output
It will take six months before the
new system will be implemented.
Undermanned production control
section
Continuous payment of P50,000
daily penalty
The company will not accept any
further business due to back log

EXTERNAL ENVIRONMENT
Opportunities

Threats

Competitiveness in the steel market

industry.
Acceptance of other incoming orders.

IV. ASSUMPTIONS
1. The Company has existing guidelines on employee discipline.
V. ALTERNATIVE COURSE OF ACTION
ACA 1:

Formulation & implementation of policy on incentives & award system.

ACA 2:

Training or Seminar on enhance values formation for all employees.

ACA 3: Conduct strategic planning workshop on productive control with team

building.

VI. ANALYSIS

ACA 1: Formulation & implementation of policy on incentives & award

system.
ADVANTAGE/S
Will uplift employees spirit,
morale and motivation towards
their work.

DISADVANTAGE/S
Entails additional expenses to the
company

Highly acceptable to the

employee
Instant effect on meeting the
contract delivery deadlines.
Camaraderie among employees &
supervisors will be built.
Roles of the individual position will
be emphasized. Thus, employees
will recognize their individual
significance in the companys
growth.
Initial implementation of the new
system of production control may
be in place right after this event.
Thus, penalty of non-fulfilment of
contract delivery dates may be
avoided.

ACA 2: Training or Seminar on enhance values formation for all

employees.
ADVANTAGE/S
Employees will have renewed
drive to work

DISADVANTAGE/S
Limited scope, in view of
production is not included

Easy to organize

ACA 3: Conduct strategic planning workshop on productive control with

team building.
ADVANTAGE/S
Venue for detailed discussion of
the problems and its appropriate

DISADVANTAGE/S
Some workers may not commit
their 100% approval and

solutions:
concerns such as: unrealistic
targets, shifts on manpower
requirements, machine
scheduling, estimation of labor
and material costs, shortage of
skilled manpower, implementation
of companys policies, benefits &
incentives, etc.
Employees will have first time
experience of out-of-town training.
Thus, they will feel good and look
at ABC Steel Company in a
different perspective.

participation in the
implementation of the plan

Entails additional expenses to the

company.

The company will sacrifice one

day production

VII. CONCLUSION
DECISION MATRIX
CRITERIA/ACA
EFFECTIVENESS
EFFICIENCY
EASY TO IMPLEMENT
TOTAL

ACA 1
4
4
4
12

ACA 2
3
4
2
9

ACA 3
4
3
3
10

It is therefore recommended to choose ACA 1 - Formulation & implementation of

policy on incentives & award system.

VIII. PLAN OF ACTION

ACTIVITIES

RESPONSIBLE
PERSON

TIME FRAME

Preparation of program and

acitivities.

Operations

1 day

Proposal and approval of

HR

3 days

budget and activities.

Scouting of venue,
transportation, and
resource experts.

HR

3 days

Dissemination of
information of planned
activity to all employees.

HR

1 day

Confirmation of attendees.

HR

1 day

Preparation of materials for

the activity.

HR/Operations

1 day

Commencement of activity.

HR/Operations

3 days

Monitoring of attendance,
production, behaviour, or
work attitude of employees.
Evaluation and feedback.

HR/Operations

Continuous of up to
over 5 months