Redulla, Alan Roy J.

BES-EM - Engineering Management

BSME 3-A March 15, 2020

CASE STUDY 2
R.E. CONSTRUCTION: It’s Now or Never

Introduction

Engr. Romeo Estabillo established a continuously growing construction firm. Because of this, he
believed he must now secure an additional employment of four civil engineers on a full-time basis.
However, he is worried that this plan of his may affect his performance to function effectively and
efficiently in leading his business. Moreover, additional employees could also mean additional payroll.

Recommendation

Since Engr. Estabillo do all the supervisions of operations of his own firm, the addition of civil
engineers could give additional more work for him. However, it could also potentially help in his growing
business. In order for Engr. Estabillo to have better assessment of his situation, he must look up in
different areas of consideration. One is the demand, both external and internal. External demands involve
the number of clients who avail the services offered by his firm while internal demands involve the
manpower needed to perform the operations to serve the clients. To continuously meet the demands of
his firm, it is advisable that he also hire someone who is capable of handling his job in supervising the firm.
in this way, it could lessen his burdens and give him more opportunities to focus on other areas in growing
his firm. The next thing to consider is the current financial status of his firm. Hiring additional civil
engineers could affect the external and internal financial aspect of the firm. The firm could accommodate
more clients increasing the profit and reducing the workload of the current number of employees.
However, it would cause additional cost for the new employees’ salary and increase the scope of Engr.
Estabillo supervision. Though there are few disadvantages but taking risk could be essential in a growing
business. If he really wants to expand his business, he should take risk in hiring additional four civil
engineers. And as to the difficulty in supervision, hiring of a supervisor and improvement of organizational
works would be efficient.

Rationale

This case analysis would help Engr. Estabillo have a better assessment of his situation and
judgement in the process of decision-making. Given that this analysis provides the different areas of
consideration, Engr. Estabillo could evaluate decisions that would definitely influence the status of his
firm. Furthermore, taking risk could be an essential part in growing as it is connected to opportunities and
innovation.