Case 6: Leadership

BUENAVISTA ELECTRICCOOPERATIVE, INC.: Masquerade

Right after Engineer Oscar Pascua finished his electrical engineering course at FEATI University in
1985, he was hired as an employee of the National Electrification Administration (NEA). He was assigned
to handle jobs in various units of NEA until his promotion to Chief Planning Officer in 1994. His main
function was to supervise the planning activities of his unit. Three engineers and two other employees
reported directly to him. His performance was rated very satisfactory.
Engineer Pascua attended training sessions of various kinds including those for management. He
finished is MBA course in 1995.
When the position of general manger of the Buenavista Electric Cooperative, Inc. (BECI) became
vacant in January 1996, he was nominated by NEA. He got the post in March 1996. Aware of the many
problems besetting the cooperative, he immediately went to work.
When Engineer Pascua called the key officers of the cooperative to a meeting, he was appraised
of the following:
1. that the price of electricity charged to BECT’s customers is the fifth highest in the country;
2. that 25 percent of the electricity service provided by BECI is lost every month and cannot be
accounted for;
3. requisitions for supplies and materials are served after delays of as long as three months;
4. some employees of the cooperative do not report regularly for work;
5. the increasing amount of uncollected.

Three days after the meeting, he recommended to the board of directors the following:
1. the dismissal from the service of employees not regularly reporting for work;
2. salary increases of up to 20 percent for every employee on the payroll:
3. the hiring of eight additional employees; and
4. the formation of a team to investigate and recommend measures to minimize “system loss”.

All his recommendations were approved by the board, after which Engineer Pascua signed all
the necessary memoranda to implement his programs. He made regularly inspections of the activities of
the various units of the cooperative.

During the first week of March 1997, he convened the key officers for an evaluation of the past
year’s activities. The following points were made clear to him:
1. No reduction in the price of electricity could be extended to BECI’s customers because no
reduction in the overall cost of doing business was achieved.
2. Instead of reducing the 25 percent system loss, it even went up to 26 percent.
3. There was no improvement in the requisition of supplies and materials. Delays still reach
Three months.
4. There is a new set of employees who do not reported regularly for work.
5. The amount of uncollected account increased from P3.8 million to P4.2 million.

Engineer Pascua concluded that in spite of the granting of salary increases requested by the rank
and file, no subsequent improvement in services was registered. He is now considering more drastic
measures but he is not sure if it is the right thing to do. In addition, he is also aware that there are some
employees who are qualified and dedicated to their jobs.

REACTION: