I.

FACTS OF THE CASE

Toledo Manufacturing Company was a medium-sized manufacturer of

custom-made electrical motors and motor housings operating successfully for 35

years. In 1966, 400 new workers and managers were employed by the company. Ten

men were involved in procurement of materials of the TMC: one manager (Mr. Jose

Tan), one assistant manager (Mr. Rolly Velasco), three buyers (Al Porciuncula, Pete

Lazaro, and Che Bosco), and five clerks.

Of the ten of them in the procurement department, Pete Lazaro was the oldest.

He was one of the most trusted original employees of TMC since its founding on

1931. He was in service for 35 years and in no doubt knows the trade and the trends

of the business. His years in procurement were considered a valuable company asset.

But as time goes by, after the 24-year old manager, Mr. Jose Tan, had

familiarized himself with the operation of the department, his attention was caught by

some things that worries him so much. He pointed out some inappropriate practices of

the buyer of small hardware items, Mr. Pete Lazaro. Some of these are, not joining

the entire purchasing department personnel who all moved on the third floor of the

building three years ago, reporting to work on very odd hours, and purchasing some

hardware items on an overpriced amount. These practices don’t affect the other

buyers but these surely affect the company negatively especially in its time for

expanding its operations.

II. STATEMENT OF THE PROBLEM

 What steps should be taken by the top management to resolve the issue regarding

with Pete Lazaro’s unsatisfactory work performance?

 What causes Pete Lazaro to become unproductive or to underperform?

 What actions should be taken to reach the optimum utilization of the company’s

monetary and manpower resources?

III. POINT OF VIEW

Pete Lazaro was already in the service since the beginning of the company but

despite of his numerous years in the company he lately failed to perform his duties as

the standard requires. He became non-compliant with the workplace policies and

rules. With this current behavior of him, it seems that he has an issue with the level of

self-satisfaction and self-worth his job is giving him that caused him to underperform.

Considering the fact that way back then, during the early years of the company, he

had been designated as the assistant to the president but now, he is currently holding a

lower position despite the years of service he invested in the company.

IV. OBJECTIVES

 To find ways to keep the employees of the company motivated and have a sense

of satisfaction out of their job for them to do their duties responsibly for the best

interest of the company as a whole

 To determine what causes the disparity between Pete Lazaro’s present and past

work performances

V. AREAS OF CONSIDERATION

 Newly hired 24-year old manager, Mr. Jose Tan, in the procurement department

 Pete Lazaro being in service for 35 years and his experience being considered as

a company valuable asset

 Pete Lazaro’s current ineffective and inefficient performance

 Affected business operations because of the delay

 Number of years of service of employees and their experiences

 Conduciveness of the physical working environment for the management and

staffs

 Level of motivation and satisfaction employees have towards their work

 Reward and recognition system of the company

VI. ALTERNATIVE COURSES OF ACTION

Alternative 1: Keep employees motivated by giving them improved working

conditions which will help them have a sense of satisfaction with
their job.

Advantages: a. Encourages productivity in performance

b. Will help employees become more motivated in theirr work.

c. Provide job satisfaction to employees

d. Will give employees opportunity to grow.

Disadvantages: a. might be difficult to find ways to keep employees motivated

b. New policies may be implemented and employees might not be

ready for the changes.

Alternative 2: Put Mr. Pete Lazaro under close observation without changing
the working conditions and if proven to be unproductive and his
actions to be damaging to the company, the management should
terminate him to avoid causing further damage to the company.

Advantages: a. small scope of issue because the focus of attention and further
actions is on Mr. Lazaro only.

b. No changes or no new policies will be implemented

Disadvantages: a. close attention to Mr. Lazaro might lead the management to miss
out other more important concerns of the company.

b. Mr. Lazaro is in danger of being terminated

c. No opportunities of job satisfaction created