DR. YANGA’S COLLEGES, INC.

COLLEGE OF BUSINESS ADMINISTRATION

CASE STUDY: MASTER PRINT, INC.

In fulfilment of the subject requirements in

COMPENSATION ADMINISTRATION

2nd Semester- A.Y. 2020-2021

Submitted to
JOEL DOBLAR

Submitted by:
Aguilar, Janine Aira
Almonte, Princess
Mateo, Arrisk
Nantes, Matt
Pascual, Beloved Ann
Pujante, Gian

Bachelor of Science in Business Administration

Human Resource Management
May 2021

Page | 1
 I. SITUATION ANALYSIS
On October 24, 1990, the Kilusang Mayo Uno (KMU) called a nationwide strike to
protest the Regional Tripartite Wages and Productivity Board's agreed-upon
increase in the minimum wage of P17 (RTWPB). By noon on the same day, several
businesses, including Master Print, Inc., had permitted their workers to leave early
because the strike had crippled Metro Manila's transit system and unruly protestors
had burnt ten buses.
According to the security guard, Mr. Allan Villanueva, General Manager of Master
Print, Inc., got a phone call about a concern in the company. The security guard
confirmed that four workers, Alex, Ric, Jaime and Joseph, were engaged in a
physical fight. Since Alex, Ric and Joseph were after Jaime, he hurried to the
guardhouse and attempted to steal the security guard's pistol whilst he was eating.
Mr. Villanueva then requested Bong, a senior employee, to settle the boys down and
inform the remaining workers to go inside their quarters and lock the gates. The
violent fight between the four workers began with a disagreement about the fact that
not all employees receive equivalent sums of allowances. The corporation, on the
other hand, is privately handing out allowances without informing all members. As
per management, allowances are provided.
Accordingly, Mr. Villanueva ordered the management of the company's paying of
allowances for workers through his brother Henry, responsible for the Purchasing
and Personnel functions of the company to avoid future unwanted instances.

II. PROBLEM IDENTIFICATION

The major problem in this case is the unequal distribution of allowance between
the workers of Master Print, Inc.
Sub-problem:

1. There is no concrete policy on allowances, which raises concerns over unfair pay
practice, it also affect productivity and motivation of workers.
2. Giving allowance based on recommendation/relatives.
3. There are no standards on salary adjustments, which can lead to workforce
misinformation.
4. Lack of professionals/experts position who can do certain responsibilities.
5. Allowing minor employee.
6. Failure to protect and secure confidential information.

Page | 2
 2.1 INTERNAL ANALYSIS
The salary scales of workers of Master Print Inc. are not equal to all staff with the
same rank in Master Print preceding 1 November 1990. For instance, the daily rate
of Melanio D. is P144 as a stripper. In contrast to Victor P. P123 is received only as
a stripper as daily pay. Another example as can be seen in Jaime and Carlos's list of
workers and salary scales. Offset machine operator has the same job, but their
everyday pay is not the same.
The following are several workers who received daily wage and it shows a same job
but different wage rate prior to November 1, 1990:
Table 1.
STRIPPER
1.Melanio D. 144
2.Victor P. 123
3.Wally T. 110
4.Gerry S. 122
5.Brigida A. 89
6. Maria H. 89
7. Josefina 89
8. Grace R. 89
9. Erlinda N. 116

DRIVER
10.Felipe C. 114
11.Eli T. 89
12.Ramon R. 102
OFFSET MACHINE OPERATOR
13.Carlos A. 89

14.Jaime T. 112

15.Ric G. 89

16.Joey T. 104

17.Victor B. 126

Page | 3
 On the other hand, Master Print Inc. grants some of its workers additional
allowances without set laws and regulations as regards allowances. This benefits
are secretly provided. Extra allowances are not given to all workers. They grant
additional allowances for staff who have already assisted them on such matters.
The following are several people who received additional allowances:
Table 2.
Melanio D. P1000
Reno R P1000
Victor P. P700
Wally T. P400
Gerry S. P500
Manuel G. P600
Alex C. P150
Bong A. P200
Rica S. P200
Gary O. P150
Felipe C. P250
Demy H. P400

Master Print Inc. gives monthly allowances according to the workforce's personal
assistance in the past.

As per Master Print Inc.'s Organization Chart, the overall organization is

overseen and managed by Mr. Allan Villanueva, the General Manager. Therefore
the Payroll/Secretarial, the Messengerial and Accounting departments are
supervised by Henry Villanueva, a brother of Allan Villanueva. All other roles like the
operational role do not have a single person who oversees the day-to-day running of
the company.

Table 3.
III. ALTERNATIVE COURSES OF ACTION

Page | 4
 Table 4.

ALTERNATI
VE COURSE ADVANTAGES DISADVANTAGES
OF ACTION
1 Through a developed Human Resource The development of
Department, the company may be able to fix its Human Resource
existing worker concerns. Functional areas of Department will take
the HR Department would enable the company time to recruit the
to strengthen its relationship with its workers. skilled individual
The company would also be able to put down who is to manage the
the rules and regulations on employee department and to
compensation policies, and other worker implement policies
Establish a concerns. Transparent communication between for the enterprise.
Comprehensive the company and its workers may be allowed, Since it may take
/Concrete resulting in a much happier interaction between longer to set up the
Human people within the company. department, it may
Resource also lead to a slower
Department Compliance with labour legislation and other approach to the
employee-related matters should be ensured. existing employee-
Worker's development and welfare would be related issues and
prioritized, leading in a much stronger sense of concerns. Extra costs
efficiency and work output. In the objective of may arise as the
strengthening HR Department, rules and policy organization recruits
must be established in order to explicitly define more.
the conditions for work advancement, appraisal,
and other tasks, as well as to avoid favoritism
and non-job-related disorganization.

2 The reorganization of the system would affect Productivity growth

work disbursement inspection. Public is highly probable
presentation evaluating employee and with workers now
adjustment of the allocation for the performance encouraged and strive
implications. This will be a new beginning for a to acquire successful
company like MPI that has no specific company public performance
Reorganize the policies before that other than that implemented impacts. The
Allowance by the company owners. Therefore, the old disadvantage to this
System feeling of favoritism which influenced the option, though, is that
business environment replaces a sense of resistance by workers
professionalism. whose allowances are
deleted can be faced.
The internal conflict
may be followed. In
addition, it can be

Page | 5
 difficult for
employees to
accommodate this
shift.

3 This sought to identify advice by external A consultant wherein

consulting. This would be very positive for the the company cannot
organization as this will become an incentive finance much
Have for them to uplift their expectations of doing expenses may be
Consultant their business. Consulting professionals on how required to pay a
Services to to do it, in particular with regard to their large fee. The
Support Mr. questions about workers, is a reasonable choice. company may depend
Villanueva on advisory services.
with Employee Experts who are
Concerns willing to encourage
profitable businesses
are demanding
relatively high prices.

IV. DECISION

Establish a Comprehensive/Concrete Human Resource Department

MPI did not consider the Human Resource (HR) department as the most
important department in a business. It is such a shame because HR is critical to the
success of every organization. Without an effective and efficient HR team, there will
be no talents in the business, and without talented people who are dedicated to the
organization, there will be no business.

The scope of the HR department is more than just processing payroll and setting
employees concern. HR plays an essential role in developing a company’s strategy
by enhancing employees’ perception throughout the workforce, and providing a well-
rounded experience for employees.

The decision we made is to "Establish a Comprehensive/Concrete Human

Resource Department" because a concrete HR Department can organize the whole
organization correctly in a way where allowances are distributed equally to
employees, and thus the allowance policy is clearly defined. Salary adjustments
would be having standards to avoid misinformation causing conflict among
employees, for example, by providing additional wages only because of any past
relationships or assistance in the past. Also, the productivity of employees at work

Page | 6
 will not affected because the HR department will ensure that anything that concerns
employees is well. The HR Department will now have the ability to test applicants
when it comes to interviewing people, retracting qualified candidates and taking up
top talent slots as quickly as possible, such as the under-age employee in MPI,
which create problems within the organization.

This action seeks to respond to all of the company's current issues, including its
potential employee concerns. Master Print Inc. would benefit a deep commitment to
Human Resources Department when it prioritizes Master Print Inc.'s most valued
assets—the company's people. This choice allows Mr. Villanueva to understand that
all that has occurred in the company is a lack of a professional who facilitates
communication with the employee. If Mr. Villanueva establishes a full-service HR
department, he doesn't actually have to employ employees to do the task, he has his
workers officer.

The downside of establishing department for human resources is that it requires

to give up control over MPI works. They may run the risk of not adapting completely
to the complexities of MPI organization and taking actions that are not in the best
interests of the company. It also takes time to successfully implement a human
resources department. Depending on how large an HR department MPI add, it could
represent a significant cost to their business.

V. EXECUTION

We make two (2) parts for implementation to execute our decision. Table 5. is
the step in Establishing a Comprehensive/ Concrete HR department for the MPI
printing plant or for Allan Villanueva.
Table 5.

HOW TO ESTABLISH A DESCRIPTION

SUCCESSFUL HR
DEPARTMENT
1. SIMPLIFY Keep the HR department simple but concrete so it can
keep up and match the maturity of the organization.
There’s no need to complicate things.
2. MATCH EXPERTISE WITH Hire an experienced HR professional who reflects on their
CULTURE company culture.

Page | 7
 3. COST OPTIMIZATION MPI would certainly cost them this, since they will find a
professional, Villanueva brothers need to be cautious
about the expenses, because after all it would benefit
their company.

4. STAY CONSISTENT When HR is hired, MPI need to cooperate with HR teams

so that their company values, mission, and vision in all of
its job descriptions, benefits, and policies are align.
5. STAY INVOLVED Villanueva brothers need to make sure that they are
involved in the HR department processes. While they
shouldn’t micromanage HR, they should be aware of HR
operations.

After establishing a successful HR team, here are the HR team's responsibilities

or priorities in relation to the challenges or problems that MPI is facing.
Table 6.
ACTIVITIES OBJECTIVES TIMEFRAME BUDGET TEAM
RESPONSIBLE
Clarify HR To help MPI 1-2 months N/A Human
Policy manage Resource
employees more Department
effectively as it
defines what is
acceptable and
unacceptable in
the workplace.

Establish a To motivate 1 month N/A Human

Concrete workers for higher Resource
Compensatio productivity. Department and
n and Benefits Financial
Department
Enhance To strengthen 2 months 5,000 Human
Training those skills that Resource
Programs each employee Department
needs to improve.

Strengthen To ensure that the 1 month 5,000 Human

Recruitment candidate is hired Resource
Process only after meeting Department &
Mr. Allan

Page | 8
 all the legal Villanueva
obligations that
the company
possesses.

Appoint To ensure 3 months 3,000 Human

Leaders in employees are Resource
Certain Job fulfilling their Department &
roles Mr. Allan
Villanueva
Create To be more 1-2 months 6,000 Human
programs to efficient, create Resource
Maintain less conflict, and Department
Employee be productive on
Relationships the long run.

Use a Human To track employee 2-3 years 12,000 Human

Resource time, recruit new Resource
Information employees, Department &
System manage IT Department
paychecks and
benefits,
automate
administrative
tasks, track
compliance, and
keep records.

Construct an To ensure 2-3months 3,000 Human

Action Plan employees are on Resource
the same page Department &
and aren’t Villanueva
confused about Brothers
new policies and
procedure.

Page | 9