Case Study 4.

PONCIANO RETAILING COMPANY: Yesterday

Mr. Ponciano Samonte was 25 years old when he organized his business
firm, Ponciano Retailing Company. He asked Danny, the younger brother of
his high school classmate, to join him in his newly formed business. As the
years passed, the firm made good in the grocery retail business. Together,
Ponciano and Danny established one branch after another. Within a span of
20 years, 19 branches were established throughout Central Luzon and
Cagayan Valley. 

The total number of employees reached 405 and everyone showed much
respect to the leadership abilities of the two pioneers. Ponciano and Danny
worked in a mutual trust with each other. Ponciano always consulted Danny
on several important aspects or running the business. Danny was always
busy training personnel on several aspects of managing a branch so there
has never been a shortage of [Link] of his loyalty and ability,
Danny was well taken care of by Ponciano. He receives an executive salary
that was above industry standard, plus allowances and medical benefits. He is
provided with an executive car. He is authorized to make decisions on
operational matters. To assist him in his task, Danny trained two junior
executives.

All went well until Ponciano died and full ownership and control passed to
Ponciano’s oldest son, Patrick. What Patrick did was to introduce measures to
centralize decision-making. Previously, the store managers had the authority
to determine the types of merchandise to carry, the quantity, and the timing of
purchase. The recruitment and training of store personnel were functions
exercised by the store managers. The above functions, as well as some other
tasks, are now performed by the top management through a staff in the
central office. The changes introduced effectively reduced the authority and
influence of the store managers. Danny’s authority was also greatly reduced.

Just a month after the decentralization order was implemented, Danny felt
the demoralizing effect on the managers and employees assigned to the
branches. sales dropped by two percent and a number of key employees
started to make moves to look for suitable jobs elsewhere. the rate of
absences and tardiness also began to go up. Danny was alarmed by the
situation and he informed Patrick about the strong possibility of negative
growth for the company. Patrick told Danny not to worry because he thinks it
is easy to replace those who will leave.
Case 5: PR MOTORCYCLES: Till We Meet Again

Miss Amelia Rivera was a very effective training officer in one of the
biggest appliance dealership in the Philippines. She was satisfied with her job
not only because of the pay she receives monthly, but also because the top
management recognizes her value to the organization.

One day, while in a birthday party, she was introduced by her father to a
long time friend, Mr. Pedro Reyes, who happens to be the president of a large
motorcycle dealership. The company operates branches in all the provincial
capitals throughout the [Link] Mr. Reyes heard about Amelia’s job,
he offered her a bigger job in his company. The job offer was a HR manager
and it comes with twice the salary she was receiving from her current
employer.

Amelia’s father advised her to accept the offer and after a week, she
began working for Mr. Reyes. With a complementary staff of five subordinates,
she proceeded to perform her new job with enthusiasm. Through written
memos and personal calls, she laid out the HR policies to the twelve regional
managers of the company. Eleven of the regional managers religiously
observed and implemented the HR policies, except [Link] Mantic who
was assigned in Northern Luzon

On one particular weekend, the president called all the regional managers
and Amelia to a meeting to discuss the company’s HR policies. Amelia was
asked to make a report but before she could finish, one aspect of her report
was criticized by Mr. Reyes. Amelia took the matter lightly, but as if on Mr.
Reyes’ cue, Mr. Mantic began to show disrespectful behavior towards Amelia.
This he did even in front of other managers. One of the managers told Amelia
that Mr. Mantic is a bright fellow but he is not high performer, and he thinks
highly of himself, and he feels he is indispensable to the company.

Mr. Reyes considers the regional managers as the workhorses of his

company and so he provides them will all incentives, financial or otherwise
that he can give them. Amelia believes that this is the main reason why Mr.
Mantic behaves as he does. During the past few months, Amelia tried hard to
win the respect of Mr. Mantic, but all her efforts failed. One of the Amelia’s
subordinates reported to her that [Link] told her that HR work is a waste
of company funds.

After some weeks, Mr. Reyes related to Amelia that henceforth all
recommendations for promotion of any employee would emanate from the HR
department. After a few months, hwever, Mr. Mantic recommended one of his
subordinates for promotion and it was approved by Mr. Reyes without the
knowledge of Amelia. When Amelia was informed by one of her staff
members about the promotion, she filled her resignation the next day.
Case 6. OSPA CONTRUCTION: I’ll Be Back

Mr. Oscar Pascua hired his niece Ofelia to help him manage his
construction business. He assigned Ofelia to do administrative work. She
enjoyed doing the various task she was ordered to perform. Positive
interactions with employees kept Ofelia busy and contented with her work.
She thought engineers, foremen and construction workers are people who
easily understand instructions. For instance, when she asked them to fill out
the forms she distributed to each one of them, they complied without much
fuss.

Mr. Pascua has a sister, Milagros, and she is operating her own
entertainment business. It was in her fold that some big stars in movies and
television got their training and involvement in the world of show business.

When Milagros saw how orderly the administration of Oscar’s business

was, she asked Oscar if she could “borrow” Ofelia for a while. Obviously,
Milagros wanted the administrative aspects of her business straightened out.
Ofelia was only too glad to join her aunt Milagros. She thought that after doing
real work, she needed a break from her stint in the construction business.

When Ofelia began to work with her aunt, she found out that there are
many things she should attend to. For Instance, employee records are not
complete, and company policies and procedures are not well documented. As
a result, it is difficult to determine employee performance.

When Ofelia distributed the required forms to employees and the talents
who are undergoing training, she noticed that they were not too eager to
accomplish them. After two days, the janitor approached her and asked if she
would dispose the contents of the wastebaskets even if the form she
distributed are in them.

Ofelia tried hard to contain her anger. After awhile, she regained her
composure and asked herself, “What kind of people are they? I wish I’m back
at my former job.”
Case 7: Hit and Miss Manufacturing: A Star is Born

The head of the HR Department, Atty. Mila Bravo was directed by the
company president to act as leader of a committee whose task is to revise
and update the current compensation scheme of the company.

The president designated the following as members of the committee.:

the accountant, the executive secretary, an employee in one of the operating
units, an officer of the labor union, the internal auditor and a representative
from the public.

During the first meeting, the seven members were all present. The
president made a briefing regarding the purpose of the group, the
circumstances that lead to the formation of the group and his expectations
about the group’s output.

The group proceeded to determine the various factors relevant to the

determination of the rates of the various jobs. Most of the members of the
committee, however, cannot devote the time required to finish the job within
the time frame indicated by the president. It turned out later that it was not
only time that hinders the committee’s effectiveness. The first two meetings
were held without much fuss. Everybody was given the opportunity to air his
or her views about the various matters forwarded for discussion.

For one reason or another, the accountant failed to appear in the

succeeding meetings. He never attempted to explain his position to the
committee leader or to any member, but his body language indicated that he
was too busy doing more important concerns for the president and the board
of directors. He tried to communicate with the public representative asking for
information about developments in the committees work. Outside the
meetings, he indicated to one member his objections to some of the matters
that were deliberated and approved by the committee. As the meetings
progressed and without his active participation, he made piecemeal reports to
the president.

When the committee submitted its final report, the president was not
satisfied and he voiced his objections that were clearly the objections of the
accountant. The other members of the group were dismayed about the
actions of the accountant and they vowed not be participate again in whatever
committee work where the accountant is assigned as a member.
Case 8: Knights of Columbus: Stranger on the Shore
Ernie is a very likable person. When he passed the board examination
for electrical engineers as a topnotcher, he applied for a teaching job in the
state university where he obtained his bachelor’s degree. He and some former
classmates were hired by the university.

Ernie enjoyed teaching and it was in the course of his employment

when he finished his doctoral studies in engineering. He was elected vice
president of the national association of electrical engineers. Within ten years,
he was appointed dean and then vice president of the university. After twenty
years of excellent performance in his job, he was installed as president of his
alma matter.

It was not very hard for him to perform the job of the president because
of his long years of association with the university, first as a student and later as
a professor. Some of the professors occupying critical positions are his friends.
His subordinates think of him as one who is not only respected in the academic
community, but one who is fair and honest in his dealings with people. They
supported him in many activities and projects including the social affairs he
sponsored. During his term, the university enjoyed a period of academic
excellence.

A few months after Ernie retired from the university, he was elected
grand knight of the council of the Knight of Columbus. His position is the
equivalent of the CEO of a private firm. He was very enthusiastic in his first
month in office. Later, he found out that managing the council is not as easy as
managing the state university.

Of the 200 members of the council, not more than 30 are regularly
attending the monthly meeting. Ernie finds it hard to improve the number of
active members. He could not even get the required number to attend the
necrological services for deceased members.

Ernie is now thinking hard to find a solution to his problem.