1.

)STATEMENT OF THE PROBLEM

a) What are the credible points that Engr. Lagayan would raise in the
upcoming executive meeting?
b) What is the most effective organizational structure for the expansion of
the company?
c) What could be the best way to build up the companys sales force for it
to stay lively in the market?
d) What could be the most appropriate solution to easily distribute the
labor, ensuring effectiveness and efficiency, in the company as it
expands?
OBJECTIVES:
To review the existing and the proposed organization chart
To comment on the planned expansion
To suggest new solutions
To adapt to the changing environment as the company expands
2.)ENVIRONMENT/ NATURE
a) Internal Environment
Personal Aspect
He has worries with regards to the risks that come along
with the companys expansion.
Personnel Aspect
The company needs positions to certain tasks/duties.
The skills of the present employees/workers may be
impressive yet limited.
The tasks/duties of the present employees/workers may
also be limited.
Organizational Aspect
The organizational structure of a company is utilized to
maintain order, assign clear roles to departments and
individuals to provide them with a sense of purpose and
responsibility, and ensure that its goal will be met.
There is a principle of authority and superiority.
Financial Aspect
The companys market sales are high as well as its edge
to gain more profit.
The capability of the company for expansion and for
hiring additional manpower needs to be thoroughly
evaluated.
Marketing Aspect
To introduce the new product, the company should
develop marketing strategies that will be effective.
Production Aspect
The availability of the facilities, its condition and
performance has a great impact to the quality and
quantity of production.

b) External Environment
Economic Aspect
Business is doing well timely to introduce a new product.
Clients Aspect
The customers demand for the companys products
highly affects its income.
Manpower Aspect
The availability and willingness of skilled workers to be
hired that will fit the positions needed.
In the area of technology
Choose machines with high quality and performance yet
has a reasonable cost.
3.)ALTERNATIVE COURSES OF ACTION
a) Stay in the same set-up
Positive
The company attains success in the existing set-up
The business is also profitable gaining high sales
Negative
It contradicts to the companys goal of sustaining growth
Improper distribution of tasks and insufficient manpower
Work overload that may cause stress and fatigue to
workers
Inability to attend all of the customers needs
Some opportunities may be lost
b) Accept the proposed organization chart and new positions as is
Positive
The company will have a smooth workflow
The employees would know their respective leaders
Negative
Additional cost for the new employees salary
The need to maintain a sales force will not be satisfied
There will still be some tasks that needs to be execute by
a new position not included in the proposed set-up

c) Maintain a sales force by adding new positions to the proposed

set-up
Positive
More efficient transactions with the customers
More customers can be accommodate
It will be an aid to the companys needs for the growing
number of sales especially with the addition of tissue
holder to the product line
The tasks will be distributed properly and employees will
be more efficient.
Negative
The General Manager is up to this task
Additional cost for the new employees salary
d) Incorporate the product or market organization structure into
proposed set-up where there will be two associate production
managers
Positive
The two production activities of the company (1. stocks to
the market and 2. subcontractors) will have different
associate production managers that can focus more
profoundly to each area
The tasks of Engr. Lagayan as the production manager will
be lessen
Properly distributed tasks makes employees more efficient
Negative

Additional cost for the new employees salary

e) Propose an adhoc committee to contemplate on the proposed
set-up for a longer time
Positive
There will be an intensive study and review to the
proposed set-up before implementation

Negative
A longer time of study will and some opportunities may be
lost
This task will require committee members to spend more
time that will make them less-functional to their primary
duties
Scheduling is necessary because some of the key officers
are based at Makati while some are at the plant site in
Laguna
f) Provide a building for offices near the plant or vice versa
Positive
Faster transactions with the customers

 Convenience to employees and key officers

Better coordination between the office and the plant
Negative
Cost for building the structure is needed.
4.)Recommendation

C. It is recommended that the company should establish a sales force

D. Incorporate the product or market organization structure into
proposed set-up and hire two additional associate production
managers
F. Provide a building for offices near the plant
5.)Implementation
a) Research for the most appropriate and effective way to distribute labor.
b) Plan the organizational chart.
c) Presentation of proposed organization chart, new positions and
planned provisions for the company.
d) Revision and evaluation of proposed organizational chart and positions.
e) Implementation of the proposal
f) Hire skilled employees for the new positions needed.