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Columban College

Olongapo City

College of Business Administration

Venus Boutiques
A Case Analysis

In Partial Fulfillment of the Requirements in


MGT211
T-Th / 10:30 – 12:00/ A304

Djara Lou N. Lopez


Rubie Ann S. Joaquin
Nomelyn G. Macalma
BSA Students

Prof. Edmundo Jose Banagan, Ph. D.


Professor

October 2009
I. Background of the Study

Venus Boutiques is a special shop selling a selected line of ladies bags, beauty products
and ladies’ wear in a growing metropolitan city South of Manila. After a three week trip outside
the country, Carla Santos, owner manager of Venus Boutiques, found out that one of her
managers, Glo Martines, showed favoritism towards Irma, who was distantly related to her and
was the fourth salesgirl in the store. Carla decided to immediately visit the downtown store and
called Glo in to a private office to discuss the complaints against her.

II. Time Context

Three weeks after the trip of Carla Santos, the Assistant Manager reported the
demoralization of the salesgirls in the downtown store managed by Glo Martines. After the
results of the newly installed performance rating system were turned in a week after Carla left for
her trip, he Assistant reportedly received many complaints from three of the four salesgirls
against the manager of the downtown store.

III. Viewpoint

In Carla Santos’ point of view, she must always regulate and supervise the performances
of her employees. The performance evaluation system is not enough to use for the basis of
promotion to higher pay grades as well as for the payment of employee bonuses because there is
a possibility that the makers of performance rating reports may sign up false reports. The manly
supervision or unexpected visitations to branches should still be done in evaluating employees’
performances.

IV. Statement of the Problem

The main problem of the case is the act of favoritism done by Glo regarding Irma’s
performance.

V. Objectives

Short Range
1. To have a better policy in hiring and promoting employees.
2. To improve the performance evaluation rating system
3. To have a better distribution of working schedule among employees.

Long Range
1. To build a better relationship and communication among employees.
2. To build a better judgment among managers in making performance rating reports.
3. To recover the trust of the employees to the management regarding fair performance
ratings.
VI. Areas of Consideration / Analysis

Strengths:
1. Glo’s management improved the sales outcome of the store during his stay.
2. Glo is a good employee. She is a good example because is industrious and has work discipline.
3. The company has a good evaluation system that will somehow effectively measure the
employees’ performances.

Weaknesses:
1. Glo was so quiet and reserve that she lacks communication with the staff and management.
2. The company has a poor policy in hiring employee. (Glo hired Irma even if she knows they
are related)
3. The company doesn’t have an efficient and effective distribution of working schedule among
employees.

Opportunities:
1. The owner can prevent the situation by acting on it immediately
2. It may create goodwill to the business if the employees will feel that their problems are acted
on immediately by the owner.
3. The owner herself will be able to evaluate the performances of her employees using manly
supervision.

Threats:
1. The issue may create further arguments amongst the employees.
2. The operations of the store may be affected due to the misunderstanding between the manager
and the casual employees.
3. The issue may affect the morale of the Venus employees and the credibility of the newly
installed employee performance rating scheme.

VII. Alternative Courses of Action

1. Let Glo take a leave for a while and manage the store during Glo’s absence.

Advantage:
She can evaluate the performance of the salesgirls under Glo’s management properly.

Disadvantage:
It would require Carla to have more time in Downtown Branch and therefore have lesser
time with other branches.

2. Exchange Irma to the other salesgirl of other Venus Branch.

Advantage:
The branch manager of the other branch can evaluate the real performance of Irma
Disadvantage:
This may cause new adjustments to her employees and may affect the efficiency of their
performance.

3. Send Glo to a seminar.

Advantage:
This may improve her public relations and may give her new ideas in the proper
management of a business.

Disadvantage:
It would require another expense for the business.

4. Make a better policy in hiring employees.

Advantage:
The necessary and proper requirements will be applied in hiring and they will avoid
hiring liability employees.

Disadvantage:
It is time consuming for the company.

5. Put Irma and Glo under probation.

Advantage:
This will help them learn their lessons and realize not to do it again.

Disadvantage:
The flow of the business will be slower during their abscence because of the loss of a
manager and a salesgirl.

VIII. Recommendation

Our group recommendation is to exchange Irma to the other salesgirl of other Venus
Branch. In this way, Carla will know the true performance of Irma by letting the manger of the
other branch of Venus evaluate her. Moreover, this will also help avoiding favoritism among the
salesgirls. This will also avoid the arousing of new issues regarding the morale of the Venus
employees and the credibility of the newly installed employee performance rating scheme.

IX. Conclusion / Detailed Action Plan

We therefore conclude that by exchanging Irma to other salesgirl of other Venus branch,
they will be able to avoid favoritism among their employees. In addition to that, having a better
policy in hiring employees will make them avoid hiring liability employees because according to
the Principle of Staffing, the policies made in hiring employees should have the scope of proper
recruiting, selecting and training.
In relation to this conclusion, the following is our group recommended detailed action
plan:

1. First, the owner must exchange Irma to other salesgirl of other Venus branch.
2. Second, she may give an apology to the salesgirls regarding the incident.
3. Then, she must conduct a meeting with her managers and educate them about the proper
judgment in making performance rating reports.
4. Lastly, the owner must formulate her new and better policy in hiring employees.
Columban College
Olongapo City

College of Business Administration

Master Print, Inc.


A Case Analysis

In Partial Fulfillment of the Requirements in


MGT211
T-Th / 10:30 – 12:00/ A304

Djara Lou N. Lopez


Rubie Ann S. Joaquin
Nomelyn G. Macalma
BSA Students

Prof. Edmundo Jose Banagan, Ph. D.


Professor

October 2009
I. Background of the Study

The Kilusang Mayo Uno (KMU) went on a nationwide strike over the P17 increase in
minimum wage which was agreed upon by the Regional Tripartite Wages and Productivity
Board (RTWPB). It paralyzed the transportation system in Metro Manila that feared the
employees to be stranded that is why most companies allowed their employees to go home 3:00
p.m. that day including the Master Print, Inc.
Shortly after dinner, Mr. Allan Villanueva, General Manager of Master Print, Inc.,
received a report about his employees fighting about the issue of unfair allocation of allowances
to them. In contrast with this statement, Mr. Villanueva stated that allowances given to Master
Print employees were intended to be a form of salary increase for the employee concerned.

II. Time Context

Shortly after dinner of October 24, 1990, Mr. Alan Villanueva received a telephone call
from the security guard of the company about their employees fighting in front of their plant site.
The following day, Mr. Villanueva went to work early to find out the whole story about the
incident. He found out that the main reason the fight is the unfair distribution of allowances
among the employees.
Over lunch that day, Villanueva discussed the case with his brother, Henry, who handled
the Purchasing and Personnel functions in the plant. Allan asked his brother to give serious
thought to the problem concerning the company practice of paying allowances to employees.

III. Viewpoint

In Alan Villanueva’s point of view, it is an asset for them to know their employees in a
personal manner; but this should not be a reason for them to emphasize this in the allocation of
their allowances. The company must have a proper allocation of allowances based on different
performance factors and not just based on personal judgment.

IV. Statement of the Problem

The main problem of the case is the unfair allocation of allowances of the Master Print,
Inc. among its employees. This problem results to loss of trust and loyalty of their employees to
them. They feel that no matter how they good they do in their work performance they still can’t
have the allowance that is just to them because the allowances were based on the personal
judgment of the manager.

V. Objectives

Short Range
1. To have a new, fair and more effective allocation plan
2. To avoid the loss of trust of the employees t the management.
3. To have a better distribution of allowances among employees.
Long Range
1. To build a better relationship and communication among employees.
2. To improve the performance of the employees.
3. To recover the trust of the employees to the management regarding fair allowance
allocation.

VI. Areas of Consideration / Analysis

Strengths:
1. The company has the ability to give allowances without disrupting normal operations.
2. The company management knows each employee in an almost personal basis.
3. The management knows about the problem immediately and acts on it as soon as they can.

Weaknesses:
1. One of their main weaknesses is that the allocation of allowances was based on personal
reasons
2. The company’s allowance system was not fair to all their employees because it was not the
same and some receive nothing at all.
3. Poor company policy regarding wage determination.

Opportunities:
1. The management still had a chance to avoid or prevent violent situations by acting on it
immediately.
2. The management can still boost their employees’ morale by trying to have a fair system of
allowance allocation.
3. The management can create a better policy regarding their w3age determination to avoid
future incidents.

Threats:
1. The employees had a tendency to create violent incident on the company premises due to the
wage problem.
2. The company operations may be put under disruptions due to the low morale of their
employees towards work.
3. The issue about unfair allowance allocation may cause a violation of the company policy and
ethics and may result in the shutting down of the company.

VII. Alternative Courses of Action

1. Make a new, fair and more effective allocation plan.

Advantage:
The company will have a more effective, efficient and reliable way of allocating
allowances among their employees.

Disadvantage:
It is time consuming for the company and needs additional budget for planning.
2. Fulfill the basic needs and expectations of employees.

Advantage:
The company will not be encountering any more complaints from their employees.

Disadvantage:
The company must provide more money to fulfill their needs.

3. Consult a lawyer expert on labor-related cases or an analysis and ask about the legal,
conventional and judicial conditions regarding their situation

Advantage:
The company will know the legal actions that they may possibly do regarding their
situation.

Disadvantage:
It would require additional expense to the company in paying the legal fees.

4. Formulate an action plan based on your researches about the companies with similar
situations.

Advantage:
The company will know the realistic actions that they may do regarding their situation
based on the actions made by the companies with similar situations.

Disadvantage:
The actions that are effective to other companies with similar situations may not be
effective to the company.

5. Talk with the labor union of the employees and make a collective bargaining agreement.

Advantage:
The company will have the approval of the labor union and they may have a mutual
understanding regarding the situation.

Disadvantage:
It would require more time for the company to solve the problem and there is a possibility
that the company and labor union will not agree on the same manner.

VIII. Recommendation

Our group recommendation is make a new, fair and more effective allocation plan. In this
way, the company will have a more effective, efficient and reliable way of allocating
allowances among their employees and they will not be encountering any more complaints from
their employees; because this new allocation plan will cover the balance of requirements by the
employees and the management.

IX. Conclusion / Detailed Action Plan

We therefore conclude that by making a new, fair and more effective allocation plan, the
employees of the company will not have any complaints regarding the allocation of allowances.
The employees may also be more active in knowing this action because they will know that there
allowances are given based on different factors and not from personal point of view.

In relation to this conclusion, the following is our group recommended detailed action
plan:

1. First, the manager must confront the complainants and find out the root of all the problems.
2. Second, the manager must give an apology to his employees for the improper allocation of
their allowances.
3. Then, the company must start working on a new, fair and more effective allocation plan.
4. Lastly, after having the new allocation plan, they must conduct a general meeting to inform
their employees regarding this matter.