Guess that Lyric!

Drop a heart, break a name

We’re always sleeping in,
Sugar We’re sleeping for the wrong team
We're going down, down in an
Going Down - earlier round
__________________________
Fall Out Boy ___________________________
___________________________
 Sugar,
Oh honey honey
Sugar, Sugar - You are my candy girl
And you've got me wanting you
Baby Bash honey, __________
____________________
 When life deals us cards
Make everything taste like it is salt
Then you come through like the
_________

Sweetener - Know how to bring the bitter taste to a

halt

Ariana Grande And then you

____x4
____x4
____x4
 You're like an Indian summer
Thinking Of You In the middle of winter
Like a ______
- Katy Perry With a _________________
 At hindi papayag ang pusong ito
Mawala ka sa 'king piling
Panalangin - Mahal ko iyong dinggin

APO Hiking Wala nang iba pang mas mahalaga

__________________________

Society __________________________
Kapag aking sasabihing minamahal kita
Azucarera de
San Luis
Case Background
 POV/Assumptions
● POV: Mr. Carlo Fortuno, President
● The board voted to implement the five-year modernization program and this
decision is final
● 450 contractual and non-contractual employees
● History of hiring employees from families (spanning over 3 generations)
● Employees were a tight-knit group and a family in themselves
● Scarce job opportunities in Bacolod
● Carlo Fortuno was tasked to lay off 230 employees in the next 5 years
 SWOT Analysis
STRENGTHS WEAKNESSES
● Competent supervision ● Carlo Fortuno cannot influence major decision
● Good standing and expertise in the industry of ● No prior experience of laying off employees.
sugar production ● Inefficient manufacturing facilities
● Highly profitable due to the high prices of sugar ● High percentage of human error and stoppage
● Loyalty of the company rate
● Financially well-supported employees ● Lack of automation in milling process and
transport infrastructure
OPPORTUNITIES THREATS
● Philippine sugar industry could be a major player ● Doubled out-quota tariff on imported sugar
in globalization ● Inability of the local industry to meet domestic
● Increasing domestic demand for sugar demands
● Involvement of a third party consultancy firm ● Rising and highly competitive market in the sugar
● Increased pressure for modernization cane industry
 Problem
What steps can Carlo Fortuno take to make the
employees understand the radical changes that will
happen in the next 5 years without sacrificing the
company’s tight-knit relationship with them?
The Change is Right
 How much is my
change if I buy 1 big
Vcut with 50 pesos?

EASY
 How much is my
change if I buy 1 sour
tape and 1 350mL
bottled water with 40
pesos?

MEDIUM
 How much is my
change if I have 10
pesos load in the COOP
and I buy 1 ice cream
sandwich and 1
Magnum with 100
pesos?

HARD
 Change
Management
 Change Management
● Systematic approach to dealing with the transition or transformation of an
organization’s goals, processes, or technologies
● Improving an organization by altering how work is done
● Purpose is to implement strategies for effecting change, controlling change, and
helping people adapt to change
○ Having a structured procedure for requesting a change
○ Mechanisms for responding to requests and following them up
 Effective Conduction
● Take into consideration how an adjustment or replacement will impact
processes, systems, and employees within the organization
● There must be a process for planning and testing change, communicating
change, documenting change, and evaluating change
 Effective Conduction
Ste ps!
1. Define the project vision and key outcomes
2. Use vision and goals to determine the messaging strategy
3. Create a communications plan
4. Identify and engage stakeholders
5. Identify and engage change champions
6. Create a thorough plan for testing
7. Use training for instruction - and for marketing the new system
 Importance
● Business Change is constant and inevitable
○ When poorly managed, has the potential to cause organizational stress as
well as unnecessary and costly re-work
 Effects
● Increases the success of critical projects and initiatives
● Improves a company’s ability to adapt quickly
● Assures that the people asset of the organization is not overlooked
○ Standardizing the consistency and efficiency of assigned work
○ Helps employees understand their new roles and build a more
process-driven culture
● Encourages future company growth
○ Allowing it to remain dynamic in the marketplace
 Types of Org Change
● Development Change: any organizational change that improves on previously
established processes and procedures
● Transitional Change: change that moves an organization away from its current
state in order to solve a problem, such as mergers and acquisitions and
automation
● Transformational Change: change that radically and fundamentally alters the
culture and operation of an organization
○ End result may not be known ex. A company may pursue entirely different
products or markets
 Types of Org Change
Azucarera de
● A mix of both transitional change and San Luis
transformational change
○ Proposal is aimed at solving issues on cost
and globalization
○ Proposal will alter the organization culture
because of the shift from human capital to
equipment
Models for Managing Change
ADKAR
● Jeff Hiatt (Prosci founder)
● Awareness of the need for change
● Desire to participate in and support
the change
● Knowledge about how to change
● Reinforcement to sustain the change
Models for Managing Change
Bridge’s Transition Model
● William Bridges
● Three Stages
○ Letting go
○ Uncertainty and confusion
○ Acceptance
● Comparable to five stages of grief
(denial, anger, bargaining,
depression, acceptance)
Models for Managing Change
Kotter’s Process for Leading Change
● John Kotter
● Increasing the urgency for change
● Creating a powerful coalition for change
● Creating a vision for change, communicating
the vision
● Removing obstacles
● Creating short-term wins
● Building on them
● Anchoring the change in corporate culture
Models for Managing Change
Lewin’s Change Management
● Psychologist Kurt Lewin
● Three-step framework
(Unfreeze-Change-Freeze) (Refreeze)
Analysis
ADKAR
 Lewin’s Change Management Model
UNFREEZE
● The company must remain
competitive in the market.
● The company’s
manufacturing facilities
were inefficient, which is
partly due to the
company’s abnormally
large number of
contractual and
non-contractual
employees.
● This created the need for a
modernization program to
take place.
● The modernization
program, which has
already been approved by
the board of Azucarera de
San Luis, includes
advances in technology
resulting in a total
manpower reduction of
230 people in the span of
five years.
CHANGE REFREEZE
The company is attempting to As new technology is introduced
address these areas of to the company, the employees
improvement by implementing must learn how to adapt to these
the five-year modernization changes.The company shall
program provide proper training for new
● Expansion of cane procedures in their daily
extraction by operations.
increasing boiler
capacity Given these new changes in their
● Complete shift to road workplace, the employees can
cane receival stay motivated through
● Increased automation recognition and positive
reinforcements from the
The employees must be management.
reminded that this program is
for their benefit in the long run.
Implementing the program will
help the company as a whole as
it will allow it to be more
efficient, and therefore, generate
more profit. If this change does
not push through, it may result
in a more negative impact to the
company and its employees.
Kotter’s 8-Step Process for Leading Change

1. Create a Sense of Urgency: Release an open letter and hold a

General Assembly
2. Build Guiding Coalition: Retain one member from each family
(minimum), gradual layoffs, a bridging program for employees
to find new jobs, and severance packages, encourage
employees to be excited about future innovations.
3. Form Change Vision: Emphasize idea of a world-class sugar
manufacturer anchored on efficiency and innovation
4. Vision Buy-in: Hinge all changes on the goal of becoming a
world-class sugar manufacturer, so that the vision is present
throughout each step in the change process.
Kotter’s 8-Step Process for Leading Change
1.
2.
3.
4.
5. Empower Broad Action: Restructure the organization to make
room for increased automation, and establish connections
within the smaller workforce
6. Generate Short-term Wins: Establish key goals and incentives
for their success. Implement performance appraisals per
division, and create key employee recognition programs
7. Sustain Momentum: Maintain discipline with regard to pushing
through the five-year plan. Monitor progress closely. Be
dynamic in instituting new changes.
8. Anchor the Change in Corporate Culture: Articulate the
connection between the financial success of the organization
and the new behaviors and goals the company outlined
 Alternatives
ACTION PROS CONS
- Employee resistance (strikes

A
and unions)
Immediate layoff of - Instantly reduces the cost of
- Low employee morale and
employees labor
demotivation
- Abrupt change
- Reap the benefits of the

B
- Dissatisfied employees,
Gradual layoff of employees higher ROI segments sooner
especially from those in the
(according to decreasing ROI)- Implements some form of
transport division
priority
- Slower actualization of
- Retention of most

C
Gradual layoff of employees benefits because of
productive and loyal workers
(according to performance staggered and uneven
- Clear standards to aid in
evaluation and loyalty) reduction of workers among
decision making
the divisions
Recommendations
 Alternative C
Gradual layoff of employees according to
performance evaluation and loyalty
● Known for their tight-knit company culture
● Prioritizes the needs of its people and as well as their degree of
contribution to the company
● Mr. Fortuno should offer its 230 laid off employees support
 A. General Assembly
● Purpose: To explain what will transpire in the next five years
● Explain the current inefficiencies in each division
○ Employees would see the need for automation in order to reduce costs and
remain competitive
● Also explain the guidelines for the performance evaluation and layoff scheme in
writing through an official memorandum.
 B. Implement performance
appraisals per division
● For the first year of the five-year plan
● Promotes efficiency and increases morale in the workplace
● Will encourage optimal performance of employees who will be under observation
● Necessary for objectivity
B. Implement performance
appraisals per division
Benefits:
- Improved performance and profitability
- The opportunity to open two-way communication
- Increased job satisfaction and motivation
- Better morale and teamwork
- Improved planning for employee development
Rating
1. Unacceptable
2. Meets Expectations
3. Exceeds Expectations
Job Criteria
- Abilities, Knowledge, and Skills
- Quality of Work
- Quantity of Work
- Attitude
- Communication Skills
Behavioral Characteristics
- Cooperation
- Reliability
- Initiative
- Attendance and Punctuality
- Judgment and Analysis
- Adaptability
Objective Completion
- Objectives for Review Period (Satisfactory or Unsatisfactory)
- Objectives for Next Review Period

Sample Performance Appraisal Form

 C. Gradual layoff of employees
based on performance and loyalty
● After a whole year of performance appraisals
● Retain only the most productive and loyal workers, based on a clearly defined set of
standards
● Promote transparency throughout the layoff process
● Most people-centric approach the company can utilize
○ Can retain one family member per family
D. Provide outplacement services
and severance packages
● Based on the financial capabilities of the company
● Typical severance: one-half to one month’s salary per year the employee has spent
with the company
● Assisting employees in future job prospects by providing outplacement services
from a consultancy firm
● Consider developing its own program to help employees learn new skills, pursue
personal goals, or start their own small-scale businesses.
D. Provide outplacement services
and severance packages
Should this be too costly
- Offer resume advice, connect employees to members of their network, and pay
for short online courses.
● Demonstrates to their previous employees that their contributions are valued and
appreciated
● Ensures the loyalty of the remaining employees– many of whom are friends and
family of those laid off
Kahoot!