Case Study 2: The Outsider

Peter Movers Corporation was expanding its operation in its construction business and trading
activities. Most of the employees come from technically trained manpower due to the nature of
work. The management feel that they need to hire new and fresh executive to bief up the
growing work force.

A nontechnical executive in the person of Roger Santiago was added to the working teams of
managers. He was assigned as assistant to the president and chief-executive officer. The work
of Mr. Santiago covers analysis of manpower programs and cost related activities and to give
advice to the president of some management aspects that are not generally handled by line
managers.

The appointment of Mr. Santiago was not received well by older managers. They felt that
insider should have been placed instead as assistant to the president. Mr. Santiago had
difficulty getting some important information from line managers, without the expressed orders
from the president. Nevertheless, Mr. Santiago continued to prove his worth by instituting new
work programs and managerial activities, that brought substantial improvement in the
company operation and profitability. He worked for management compensation systems that
gave more benefits and produced more dedicated manpower. He made a lot of improvements
in system designed and work improvement programs.

Five years later, Mr. Santiago was promoted to the position of vice president. During the period
of proving his managerial competence, managerial employees slowly began to like him as a
person worthy to the position. His promotion to the position was well received by all.
Case Study 3: Seniority in the Organization

Permaja Resources Corporaton has the policy of promoting employess within the organization
on a company wide basis. Seniority is based on the length of service and the performance
ratings.

Rod Santos was hired as a mechanical engineer trainee on March 20, 2002 and got a
performance rating of very satisfactory. He was a trainee for 6 months before his promotion to
Engineer at Section A of the machine shop section.

Roger Santiago was hired in January 2003 as engineer trainee in Section B of the machine shop
and had performance rating of very satisfactory for the last two years. Both Santos and
Santiago are mechanical engineering graduates of a prestigious school.

The position of supervising engineer in Section B left vacant with the promotion of Art Real to
Plant Superintendent of both section A and B. due to the seniority rule, Rod Santos was
promoted to the post. While Art would like to recommend Roger Santiago to the post, the HR
department policy on seniority rule had to be applied, hence the intention watered down when
he talked to the HR manager, Art talked to Rod Santos about this case and Rod Santos
understood that Roger Santiago was also interested in the position.

One month later, a major machine broke down and Roger Santiago single-handedly worked
diligently on the machine and completed it in due time to meet the customers demand. During
a break time after the successful repair of the machine, Rod Santos in the presence of the other
workers, complemented the efforts and expertise of Roger Santiago. “Roger, thanks for the
excellent work you have done. You are the best engineer around here and I would like you to
know that I appreciate very much your effort. You have the knowledge, skills ad experience
around here and you are the number one engineer along this line”

With the compliment, Roger Santiago retorted a little sarcastically “I know how all these things
run here as I am one of those who installed that machine. I know more about this whole thing
than you do. If only the HR department knew how to recognize people with potential, you
would not be here n the first place”
Case Study 4: The Case of Mr. Pedro Dela Cruz

Mr. Pedro Dela Cruz was strongly recommended by Mayor Punongbayan to work at the ABC
Company located in the municipality. Mr. Dela Cruz was a new graduate of management of the
local municipal university where the mayor himself as the President. His transcripts of records
reveal that he is an average student and had no extracurricular activity in school. His father
happens to be the supporter of the mayor in his political career. Mr. Dela Cruz took the
examination given by the company and he failed to make it due to his poor communication
skills.

To give in to the mayor’s request, the human resource manager gave him a position in the
production department as machine operator and not a clerical position that the mayor would
like him to have. But Mr. Dela Cruz did not want to accept the position and insisted that he
should get the job because of the mayor’s recommendation.
Case Study 5: The ABC Training Program

The ABC Corporation has been engaged in the manufacture of electronic components for
automobiles for the last 5 years. The company employs 350 employees and about 30
supervisors and managers. The increase in technology requires that employees be sent to
training to cope with the increasing demand for updated new products consistent with the
demand of local and foreign customers.

The HR Manager suggested that here of the managers and eight supervisors be sent to the
mother company in Japan for updates in technology on car electronics. The vice president for
finance and the operation manager opposed the recommendation on the basis of cost-cutting
and lack of personnel to handle the operations while they were away for two months. They
suggested that technicians from the mother company be invited instead to handle the training
in the Philippines. The cost of training by the mother company would double the cost of
training as they are paid higher allowances and salaries that will be changed to the local
company.
Case Study 6: Job Evaluation for Managerial Positions

The chairman of the board of directors of Jonadel Corporation has proposed that all managerial
positions be included in the corporate job evaluation program. The idea came from several
friends in other companies of the Chamber of Commerce and Industries where he is a member
of the board of directors. The inclusion of the managerial positions in other company's job
evaluation program has been found successful and helpful. There are differences in the pay
systems based on the job evaluation in these companies and the chairman is convinced that
these will work also with the company where the chairman is and has the greatest shares of
stocks.

In one of the special meetings of the Board of Directors, he proposed the idea to the chief
operating officer. The chief operating officer said that the programs be held in abeyance until
he had consulted his line and operating managers who will be affected by the changes due to
the job evaluation system that will be implemented.

In the meeting called by the chief operating officer, most of the managers opposed the idea.
They argued that their positions cannot be with other positions due to the complexity of their
responsibilities. They pointed out further to the CEO that no job evaluators can possibly know
the extent of their jobs and compare the same with subordinate positions. The objections of
the managers were that the qualities for such positions were varied and salaries were
differently structured based on experience and length of service in the company.

The CEO while being neutral, feared that if the job evaluation would include the positions of his
line and operating managers, he would be losing his best people in the organization. He also
thought that developing new manager takes time and those operations might suffer due to
changes in the organizational system.

The Human Resource Manager in his talk with the chairman of the board was in favor of the
idea. He discussed the same with his staff and also supported the ides of including the
managerial positions.

The CEO called the president to prepare a memorandum for the Human Resource Department
to study the program and implement the Job Evaluation. Program for managerial positions. The
Program should give details of the advantages of the program and the process of what is to be
done and how it should be done.