CASE INCIDENT

THE ACME INTERNATIONAL CO.

Organization and Information
CASE INCIDENT
Evaluation

Job
Job

Acme International Co. had no job evaluation and pay scale program at
the start. Jobs were given their importance and weight in pay depending on
the Department Manger or on its top mans understanding and decision.
Nobody questioned his decisions nor anybody complained.
The Company, however, through the years grew into a big corporation
and its staff correspondingly increased that it became apparent that
guidelines in grading jobs paying them commensurately should be set up to
eliminate discriminations inherent in one-man evaluator-administrator job
and to pay jobs in accordance with their importance to the overall objective
of the company.
The job evaluation and pay scale program of the company was started
by obtaining the services of a personnel management group to conduct a
seminar on for its supervisor and executives. The next taken was the
formation of a group of a executives to composed the Job Evaluation
Committee whose function was to evaluate all jobs, assign pay grades. The
Personnel Administrator was apdpointed as the Chairman of the Committee.
Job questionnaires were distributed to all employees and each one was
asked to provide the Job Evaluation Committee Descriptions of their jobs.
Based on the answers of these questionnaires together with the job
description, the Job Evaluation Committee assigned values to each job. The
completed job evaluation was submitted to the Personal Administrator who
was authorized to make his own evaluation as he saw fit.
The Job Evaluation and Pay Scale Program of Acme Company, when
presented to the employees, created chaos and angry protests though not
directly made to the Job Evaluation Committee of the Personnel
Administrator. Complaints were aired thus:
1) Newly hired employees appeared to be graded higher and, therefore,
assigned more pay than those who had been with the company for a
long time.

2) Those employees who were, of common knowledge, with lower

educational background and minimal experience, were graded higher
than those with higher educational background and wider experience.
3) The staff of a particular section were all downgraded. The employees
in this section believed that because the Personal Administrator did
not like the supervisor of the Section, the Personal Administrator took
his revenge by downgrading all of them.
4) Salaries of some employees whose present pay was lower than that of
their grades were to be given increases or adjustments while others
were not given adjustments.
Many requests for re-evaluation were made. Those who could not
accept the results of the evaluation decided to resign. Due to the problems
created by the program, the whole scheme was scrapped out a new plan was
being looked into.
GUIDE QUESTIONS TO CASE INCEDENT:
1. Who do you think has the competence to do the evaluation of jobs and
the companys pay scale program?
2. What steps could have been taken by management before the
implementation of the program?
3. Should the employees in this particular case be involved directly in
evaluating their jobs? Depend your stand.
CASE 2
Case Incident on Management-Labor Relations
Confil

Garments,

Ltd.

Background:
In 1987, a family owned Hongkong based garments firm sought to
take advantage of the investment attractions of the Aquino government. The
following year, Confil put up factory operations on its newly constructed
facilities in Taguig, Metro Manila. Confil makes knitwear and exports these to
various US and European markets thru its mother firm.
Among top officials manning Confil are the President ( a family
member of the Hongkong owners ), the Personnel Manager (a Chinese lady ),
the Personal Manager and the Production Manager. Initially, the company

hired 600 production workers under the Philippine governments

apprenticeship agreement. The term of the agreement include: 70% of the
workforce are women with ages ranging from 15 to 18. The average
educational attainment of the workforce
Is second year college.
Management style is highly autocratic and repressive. Top
management always wanders around to see that production standards and
norms of behavior are followed. There is no written code of ethics, only those
verbally expressed by the Chinese and Filipino managers which are
sometimes conflicting. Production standards are set by the Chinese
supervisors who speak very little English. Therefore, there is much reliance
on actual demonstrations of work or on sign language. Employees suspected
of violating unwritten rules were terminated without due process. Top
management cultivated favorites to serve as their eyes and ears. These
favorites constituted the spy network which secretly reported on the
activities of suspected deviants. Labor-management relations is thus
anchored on suspicion and mistrust.
Working conditions are among the best in the country. The workplace is
clean, roomy and well-ventilated. Wages are 10% higher than the minimum.
However, the employees generally feel stifled with overstrict work rules
imposed on them (e.g. going to comfort rooms during working hours is not
allowed: unnecessary conversations are prohibited while at work.
The Situation:
During the sixth month of operation, union organizers (outsiders) began
courting the workers to form and join their union. Some even joined GTU
(genuine trade unionism) teachings by radical labor groups. Top
management was alarmed by these developments. Subsequently, a
consultancy group was invited to hold a series of seminars focused on
Labor-Management Committee (LMC), a body composed of labor and
management representatives (sanctioned by law) to allow workers
participation in policy and decision-making processes in matters affecting
them.
Acting on the orders of the President, the Consultants facilitated the
selection of workers representatives to the LMC representatives (actually
these were those handpicked by the Personnel Manager) who would attend
further training on the mechanics of Labor Management Committees. After
this, the representatives were elected by this select group by viva voce
votes.

In the days that followed, it was evident that the workers were still
working toward the formation of their union. The Confil President knew that
he had to move fast. At the time, strikes were on the rise and management
was scared of union militancy. Again, the consultants were contracted, this
time to ask them to form the union militancy. Again, the consultants were
contacted, this time to ask them to form the union at Confil. The Presidents
specific orders were: affiliate this with any other federation except the KMU.
Thus, Confil Employees Union came into being, and it was subsequently
attached to the moderate Federation of Labor. The officers of the union were
also selected by management.
Both LMC and the Union continue to be managements adjuncts to
deliberate and enforce company rules. Soon however, the union members
began noticing that their union members began noticing that their rights and
interests. LMC activities were geared toward improving productivity levels
and they take charge of sports and other social activities. However, there
were no noticeable positive effects of the LMC on the company and worker
performance. In fact, Confils financial statement still reflected negative
economic returns. Productivity levels were not increasing as expected.
Employee morale was low, and workers did not feel committed to carry
out organizational goals. Management continued to be repressive and acts
arbitrarily in favor of pet employees. The term of the union was about to end.
It was likely that a contending union which promised to fight for workers
right would win this time. Meanwhile, management was tightening its labor
control mechanisms to flush out the leaders of the contending union.
Questions
1. Why did managements strategy fail?
2. What can the HRM manger do in this case?
3. L ist alternative courses of action which can be taken to improve the
situation?
4. What are the pros and cons of each alternative course of action?
5. Given this situation, what is the best alternative course of action?
Justify your answer.
CASE 3
CASE INCIDENTS AND CASES
1. Case Incidents: The Unexpected Promotion
Eduardo Cuao
Discharge for Proper Cause?
A Question of Age
2. Cases: Buenvista Plywood Corporation

The Central Normal College

THE UNEXPECTED PROMOTION
Evaluation Movement
CASE INCIDENT

Performance

Lina Espiritu was always popular with the other girls at Acme
Appliance Company everyone except Imelda Cruz. Imelda Cruz. Imelda was
the company wallflower, shy and reclusive and with a chip on her shoulder.
She was second in line after Imelda although she was senior.
One day, much to her amazement, Lina learned she was tapped to fill
the job of line supervisor. Lina immediately set her mind to the task of
becoming a good supervisor. Being fresh from the line, she was able to make
several small improvements in the womens working conditions, and
productivity went up for every workers except Imelda. Whereas the others
appreciated and responded to Linas efforts, Imelda just seemed to become
more hostile. Lina didnt know much about performance evaluation except
for the little she had with her predecessor but she was determined that
Imelda should be as productive as everyone else.
Lina called into a plan for Imelda to increase her production. Halfway
through the presentation, Imelda Imelda interrupted with shaky voice. You
dont have to go through all this. What do you mean? Lina asked, with
distinct irritation in her voice. I know youre just looking for an excuse to fire
me. Thats ridiculous. No, it isnt. I know none of your girls has ever liked
me. And now that youre in charge, youre going to get rid of me.
And with that, Imelda ran out of the office in tears. Lina called her to
stop, but it was too late. Lina was flabbergasted. She had wanted her
relations with Imelda to get better not worse after her promotion. She
knew Imeldas fear have no basis in fact or did they? Lina wondered
whether she might have shown some unconscious prejudice. But she didnt
have time to waste questioning her own motives. She knew management
would be watching to see how she would be handling the situation, and she
needed a solution quick.
Guide Questions to Case Incident
1. Did Lina make the performance evaluation of Imelda at the right time?
Defend your answer.
2. Was Lina the right person to be promoted as supervisor? Explain your
answer.
CASE 4

EDUARDO CUAO
Administration
CASE INCIDENT

Compensation
Movement

Chembag Manufacture Corp. was a medium size producer of synthetic

sacks. They also manufactured on a smaller scale mats and plastics sheets
for packing purposes.
Mr. Ventura was general manager for eight years and was doing a
good job. Recently, however, things seemed not to be running smoothly.
About two months ago, Candido Lukban, one of the production foremen was
taken to the hospital 2 months and it looked as though the estimate was
accurate. Candido expected to be back at work in two weeks.
When Candido was taken to the hospital, something had to be done.
Mr. Ventura looked around for possible replacement for Candido and
immediately thought of Eduardo Cuao.
Eduardo was one of the top men on the production lines. For fears he
was trained and seemed to do an excellent job with the aid of his own
training.
If a crisis arose on one of the production lines, Eduardo would stay
after hours to straighten out the line so that it would be running smoothly in
the morning. He was always ready to help others and knew not only his job
but many others jobs in the plant.
When Candido went into the hospital, Mr. Ventura promoted Eduardo
to acting production foreman. It was made clear at that time that the job
would only last for as long as Candido was in the hospital.
Since that time, however, everything seemed to have gone wrong.
Within weeks after the appointment was made, production started slipping.
There was a general air of discontent throughout Eduardos department. This
discontent was particularly noticeable in the last month.
The overall production rate was approximately 12% below where it
was before three months ago. In addition, quality suffered. In fact, one entire
shipment was refused for low quality. Moreover, Eduardo seemed to be
dissatisfied with his take home pay for this time, as foreman, overtime work
was not compensated.
Mr. Ventura could not figure out what went wrong. Eduardo had
always been a good worker and now everything seemed to be sliding. This
morning Mr. Ventura was sitting in his office looking at the company reports

in dismay when Eduardo walked into his office and sat down. He asked to be
put back in his old position. If he wasnt he would quit.
Guide Questions to Case Incident
1. Was Mr. Ventura right in putting in Eduardo Cuao as Acting
production foreman? Depend your stand.
2. Why did Eduardo Cuao want to quit from his latest position? Was he
correct in wanting to quit? Explain your answer.
CASE 5
DISCHARGE FOR PROPER CAUSE?
Relations
CASE INCIDENT

Management Labor

An agricultural company was established immediately after the

Second World War. The company started in a small way selling agricultural
equipment on cash basis. As it grew, it extended its operations to include
motor trucks, farm tractors, parts and service. Sales was good then and it
was able to finance many of their installment sales, it became necessary to
augment its staff of lawyers to handle legal cases inherent to installment
selling. Mr. Artemio de Jesus, a lawyer, was hired as Legal Assistant by the
Company and was directly responsible to the Corporate Secretary. He was
given the task of handling legal cases covering installment sales.
For several years, Mr. Artemio de Jesus did a very good job. But the job
was good only while legal cases arising from installment sales lasted. The
company, after losing heavily on repossessions, decided what it would no
longer allow in house financing company. Due to the change in the
financing policy of the company, the position of Mr. Artemio de Jesus with the
company became irrelevant and his services were no longer needed.
Because legal matters were the only cases that Mr. A. de Jesus handled
for the company; he was not prepared to occupy others positions or do other
jobs for the Company in case of vacancies. Because of this, the management
did not know what to do with him.
The first choice of action by the company was to terminate the services
Mr. de Jesus. However, the company knew that to do so would result in legal
battle between them and him.
Furthermore, they could not readily terminate the services of Mr. de Jesus
without prior approval from the Department of Labor. The alternative action
actually taken by the company was to transfer or reassign Mr. de Jesus to the
only vacant position in the company of that time. This was sure way out of

getting rid of him. He was offered the position of a commission salesman on

the condition that if no significant production was achieved by Mr. de Jesus in
six months, he would be forced to resign due to non production.
Mr. de Jesus was fully aware of the Companys scheme in transferring
him to the position of a commission salesman. He knew very well that he
could not survive the test because he did not know anything about selling
nor the products he was suppose to sell. He did not receive any training from
the company on such aspects of the business. He, declined the offer.
The Company wrote a termination letter to Me. De Jesus and the reason
given for severing his services with the Company was his refusal to
reassignment to another position. Mr. de Jesus, however, filed a legal case
against the company stating among others reasons for refusal to accept the
job offered, his probable loss of income due to his uncertainty of production
his job.
Guide Questions to Case Incident:
1. On managements general approach:
Aside from layoff what other alternatives, if any, did the Company
have?
2. On management labor reactions, what possible effects could episode
have?
3. If you were Atty. De Jesus what actions could you have taken? Depend
your answer?

CASE 6
A QUESTION OF AGE
CASE INCIDENT

Retirement Policy Making

Employee Relations

Herminia Francisco was about to reach two milestones in her life: in

three months she would be celebrating her 15th year with the Greenhills Real

State Company (a small operation of about 12 employees). The next day she
would turn 65 which meant mandatory retirement from the work she loved.
Not only did Herminia enjoy her work, but she also had earned a
reputation for pleasing both buyer and seller, not an easy thing to
accomplish in the field of home sales. Herminia was unhappy at the prospect
of being forced to retire, and her temper became shorter and her anxiety
grew as the date drew nearer.
At one staff meeting, Herminia became antagonistic to Wilfredo
Cruzada, president of the company, that he had to reprimand her before the
rest of the group. I want to apologize for Herminia. Shes taking this
retirement thing too seriously, he said. One of the employees retorted, Id
be angry, too, if I were getting a raw deal by the company Why should any
of us be forced to leave at a particular age? Its a bad rule, and it ought to be
changed! At that outburst, Wilfredo felt that his employees had been getting
a bit too independent. He told them, sternly, Herminia is retiring next
month. Period. If anyone he doesnt agree with the fairness of that decision,
or if anyone here wont be ready to retire at 65, he can clean out his desk.
The topic and meeting are closed. As the employees silently left the room,
Mr. Cruzada was sure that the issue was closed once and for all.
Guide Question to Case Incident
1. Do you think retirement should be compulsory at 65? Depend your
stand.
2. What should organizations do to prepare their workers for retirement?

CASE NO.1 CASE INCIDENT

The job evaluation and pay scale program in the company is a much
needed in the company. It will serve as a motivation for the employees if it
is standardized. About the CASE INCIDENT I think Department Manager has
the competence to do the evaluation of jobs and the companys scale
program. As manager, they knew the performance, attitude, skills of their
employees in the respective department.
The management before the implementation of the program must
call the attention of the employees for a conference. The agenda is about the
process of the evaluation of jobs and the companys pay scale program. Who
will be the evaluators and guidelines also be presented in the meeting. After
all, open forum and suggestion will follow. The implementation of the
program will be implemented if majority of the heads and employees are
being informed.
The employees are very much involved in this particular case
directly in evaluating their jobs because they are the subject concern. For the
legal aspects, the Personal Administrator must follow the rules and
regulation in the evaluation of jobs and pay scale programs. To avoid chaos
and angry protest procedures must be transparent to all concerns. Thus, if
there are irregularities in the said evaluation the employees had their right to

complain and clarification. The Department of Labor and Employment (DOLE)

is the appropriate department to lean on.

CASE NO. 2 Confil Garments, Ltd.

The management strategy failed because of the GTU (genuine

trade unionism) were workers joined. The HRM manager makes some
strategies in such as way that the company will not be experiencing
bankruptcy. The manager being able to hold a series of seminars focused
Labor-Management Cooperation for Productivity.
The setting up of a Labor Management Committee (LMC), a body
composed of labor and management representatives (sanctioned by law) to
allow workers participation in policy and decision making processes in
matters affecting them. The officers of the union were also selected by
management. The setting up the labor committee for the company LMC were
geared toward improving productivity levels and they take charge of sports
and other social activities.
However, there were no noticeable positive effects of the LMC on
the company and worker performance. The best alternative course of action

is the setting of seminars for managers and employees about the rights and
privileges in the company.

CASE NO.3 THE UNEXPECTED PROMOTION

CASE INCIDENT
Yes! Lina make the performance evaluation of Imelda at the right
time. It is the duty and responsibility of the supervisor to monitor the
performance her subordinates. When Lina called Imelda the reason is to
increase her production. But Imelda is defensive about her performance so
she interrupted with a shaky voice. And with that, Imelda ran out of the office
in tears. The intention if Lina is to encourage Imelda how to increase her
production because that was her job as supervisor to monitor performance of
the employees. It is actually happening now, in certain company where the
newly hired will be promoted in a higher position rather than the old ones in
the service. Nowadays, the competition of the employees is the personal
performance itself.

Yes! Lina was the right person to be promoted as supervisor.

Although she is new in the company but she competent, committed, and
performing employees. The situation when she called Imelda personally is
the strategy of effective management styles. The problem is Imelda is
arrogant. If I am in the shoes of Lina I will call the attention of Imelda for the
second time. If in case, the same scenario will happen I will recommend to
fire her.

CASE NO. 4 EDUARDO CUAO

No! Mr. Ventura is not in the right track when he designated

Eduardo Cuaa as acting production foreman. Since Eduardo was one of the
men on the production line. He is not well prepared to face the job of a
production foreman which focusing on personnel management. As foreman
he is responsible about the production where he monitor the workers and
their output per day. I think because he is new production foreman the first
two weeks is the transition period that was the adjustment time. Theres no
question about the performance of Eduardo when he was in the production

line but its different situation when youre managing people. Maybe the
production started slipping about the relationship between employees and
foreman. As head of office we must be strict sometimes when needed in
relation to job performance. It is normal that if the production is low
incentives, salary pay also diminishing.
Based on my understanding about the case Eduardo want to quit
from hi latest position because of his unsatisfactory performance. And
seemed to be dissatisfied with his take home pay, overtime work was not
compensated unlike his old position. Therefore, Eduardo has the right to quit
his latest position because of his performance. If I am Mr. Ventura I will find
the lope holes what are the causes behind and make some alternatives. Still
give another chance to Eduardo for the second time. Extend him for several
weeks until Candido Lukban resume to office.

CASE NO. 5 DISCHARGE FOR PROPER CAUSE?

Management is very significant in the organization. On
managements general approach; aside from layoff other alternatives is
reassignment. That was happen to Mr. de jesus he transferred to vacant
position. He was offered the position of a commission salesman on the
condition that if no significant production that if no significant production was
achieved in six months, he would be forced to resign due to non-production.

The management has the reason to layoff Mr. de jesus because he rejected
the job offer. This is the legal basis to file against him for insubordination.
But, under the National Labor Relations Act (NLRA), it is illegal
for your employer to; fire, demote, or transfer you, or reduce your hours or
change your shift, or otherwise take your adverse actions. The illegal conduct
will not be permitted. If you believe your rights or the right or the right of
others have been violated, you should contact the NLRA promptly to protect
your rights generally within six months of t unlawful activity.

CASE # 6

A QUESTION OF AGE
Yes! Retirement is compulsory at age of 65. Hermenia

Francisco has the right to be angry to his superior. I think she is not aware
about the law pertaining to the retirement age of the employees. As far as I
know 65 yrs. old in relation to job performance most are unsatisfactory
because of their health conditions. She should accept the retirement
provided the benefits. If she is able to work apply for a position in other
company which fit for her as a part time employees.