ORGANIZING THE POWER COMPANY

CASE STUDY

Submitted by:
Ubungen, Anthony Steven D.

Submitted to:
Prof. Eva Marie Sam
 Organizing the Power Company

Background of the Study

Johnny Ramos, president and founder of the Power Company, manufacturer of men’s
ready-to-wear (RTW) suits and jackets declared that he didn’t believe in organization
charts or position descriptions of any kind in his company. He believes that they are a
successful and fast-rising company because he wants all managers and labor to work
as a team. Organization charts and job descriptions make people believe they own a
position on a chart and want to keep it. He believes they grew from a small company
with P100, 000 annual sales to a P5 million enterprise because they pooled their
resources, coming up with competitive products at low costs. He does not want to
compare their company to San Miguel Corporation with its complex organization
charts.

Mr. Silang, the company controller, strongly defended the president, emphasizing that
teamwork, not organizational charts, is the key to success.

Linda Ignacio, head of manufacturing, believed otherwise and declared the president’s
view “absurd and unprogressive”. Ms. Ignacio said that she could not run her
department without organization charts and position descriptions. She added that as
a matter of fact, she had them hidden in her desk where their president, Johnny Ramos
never sees them.

1.0 Time Context

It is in the present time.

2.0 Viewpoint
It is Linda Ignacio’s viewpoint, the Head of Manufacturing.

3.0 Statement of the Problem

Undefined organizational charts

4.0 Statement of the Objectives

 To propose an implementation of the usage of organization charts
 To be able to define the authority and establish responsibility that each
employee has and make them understand how their roles in the
company interrelate with one another
 To be able to make them understand the usage of organizational charts
in the entire company
5.0 Areas of Consideration

5.1 Internal Environment

5.1.1 Strengths 5.1.2 Weaknesses

Competitive products Inadequate information how their
roles in the company interrelate
with one another
Stable profitability standing Absence organizational structure
Fast-rising status of the company The president is close-minded
Efficiency of the present working Unwillingness to adapt new
conditions structure
Presence of teamwork inside the Lack of awareness of
company organizational charts

5.2
5.2.1 Opportunities 5.2.2 Threats
Economic growth Unfavorable government policies
or changing regulatory
environment
High demand of RTW suits and Cultural issues
jacket
Technological advancement Structure requirements

6.0 Alternative Course of Action (ACA)

 Propose a conference with Mr. Johnny Ramos and department heads/

officers for the importance and presentation of the organizational charts
as her key to run her department.
 Propose a research about different companies which uses
organizational charts to present to Mr. Johnny Ramos the effectiveness
of an organizational chart.
 Consult the experts in Human Resource as it help make Mr. Johnny
Ramos and Mr. Silang realize the essential contribution of organization
and how it will benefit the company as a whole.
 7.0 Analysis of ACA

ADVANTAGES
ACA 1: Propose a conference It can formally introduce
with Mr. Johnny Ramos and the ideas about the
department heads/ officers for importance of using
the importance and presentation organizational chart.
of the organizational charts as
her key to run her department. It shows them how
organization charts had
helped her in running her
department.
DISADVANTAGE
It may seem offensive on their
part because they are top
executives of the company.
Presentation of organizational
chart as her key to run her
department might gave a
negative impression as it
implied that she was hiding it
without the top management
knowing.

ACA 2: Propose a research It shows the success of Results cannot be verified in a

about different companies which other big companies short period of time.
uses organizational charts to through their
present to Mr. Johnny Ramos implementation of It is time-consuming.
the effectiveness of an organizational charts.
organizational chart. It is expensive.
It gives a clearer view
about the The President had already
departmentalization and made his mind that their
elements of delegation of company is not a San Miguel
the company. with its complex organization.

Provide tested and

proven statistics and
data about equitable
distribution of works and
functions through
organizational chart.

ACA 3: Consult the experts in Since these are experts, Mr. Ramos may dismiss the
Human Resource as to help her their idea is very idea of the experts due to his
make Mr. Johnny Ramos and persuasive and valid. stubbornness.
Mr. Silang realize the essential
contribution of organization and They can present the
how it will benefit the company importance of
as a whole. organization charts more
than what Ms. Ignacio
can do.
8.0 Conclusion

8.1 Decision Matrix

3- Very Satisfactory 2- Satisfactory 1- Less Satisfactory

Objective 1: To propose an implementation of the usage of
organizational charts

CRITERIA ACA 1 ACA 2 ACA 3

Effectiveness 2 2 3
Sustainability 2 3 3
Practicality 2 2 3
Timeliness 3 3 3
TOTAL 9 10 12

3- Very Satisfactory 2- Satisfactory 1- Less Satisfactory

Objective 2: To define the authority and establish responsibility that each
employee has and make them understand how their roles in the
company interrelate with one another

CRITERIA ACA 1 ACA 2 ACA 3

Suitability 2 2 3
Convenience 2 2 2
Cost Efficient 3 2 2
Timeliness 3 3 3
TOTAL 10 9 10

3- Very Satisfactory 2- Satisfactory 1- Less Satisfactory

Objective 3: To be able to make them understand the usage of
organizational charts in the entire company

CRITERIA ACA 1 ACA 2 ACA 3

Advantageous 1 2 3
Usefulness 2 3 3
Viability 2 3 3
Timeliness 3 3 3
TOTAL 8 11 12

ANALYSIS
CRITERIA ACA 1 ACA 2 ACA 3
 Criteria 1 9 10 12
Criteria 2 10 9 10
Criteria 3 8 11 12
OVERALL TOTAL 27 30 34

8.2 ACA SELECTION

We, therefore select alternative course action (ACA) 3 to consult the experts in
Human Resource as to help her make Mr. Johnny Ramos and Mr. Silang realize
the essential contribution of organization and how it will benefit the company as
a whole. This is we think the most accurate to solve the problem of Power
company, a result of the undefined organizational structure. In addition, this is
we think the most effective ACA to attain the following objectives: to propose
an implementation of the usage of organization chart, to define the authority
and establish responsibility that each employee has and make them understand
how their roles in the company interrelate with one another and to be able to
make them understand the usage of organizational charts in the entire company.
The decision matrix shows the highest score for ACA 3 and because of the
following advantages: since these are experts, their idea is very persuasive and
valid; and they can present the importance of organization charts more than
what Ms. Ignacio can do.

9.0 Action Plan

Activities to be Person/s Time Frame Budget

Undertaken Responsibilities
Meet the Human Head of August 2019 Estimated cost is
Resource Manufacturing P250, 000.00
Consultant and
discuss about
the concerned
problem
Conduct a Human Resource September 2019
conference with Department
the president
and the
department
heads.

Submit the letter Human Resource September 2019

of proposal of Department
implementation
of organizational
chart for the final
approval.

Implementation President/ Top October 2019

of the usage of Management
organizational
chart in the
entire company

Monitor and Officer-in-Charge October –

Review December 2019