Professional Documents
Culture Documents
Pretend you are Victor Gomez. How would you address the problem of KMC? Determine
the business strategy you will take to turn around KMC. Then develop the organization structure
to match the business strategy you will have for KMC. Always provide an explanation of your
output for each step. After going through the steps of creating the structure and creating the org
chart, do not forget to describe the structure in terms of the six elements. At some point, you may
need to make an assumption or premise – you need to specify that you have a premise and that
you justify this premise. You are allowed to have as many assumptions / premises as would help
you make choices on models, configurations, and design. If you wish to combine organization
designs/structures, you may do so. Ensure you explain why there is a need to have a combined
design.
Premise:
● The company has been operating for more than 50 years and is already an established
● Due to new leaders and leadership style in the past 5 years, the company has lacked
● The cause of the company losing 10 million in its operations is because the previous
general manager was corrupt wherein he buys cheaper materials for production and keeps
what’s left of the budget for himself. The previous general manager is also a relative of
does not provide masks, buys cheaper safety gears, etc.) and a hot environment
● Effects of high absenteeism include poor morale among employees who have to fill in or
do extra work to cover absent coworkers, safety issues, reduced productivity, etc.
Mechanistic Model
I. Strategy: Cost-minimization
The company has had a deteriorating reputation with their performance and history of
losing copious amounts of money. In the last five years, they almost lost P10M in their
operations. In terms of their workers, it has been observed that they are usually engaging in
conversations while working, each doing their task either too carefully or too slowly, and having
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
high absenteeism because of illness. In hopes of restoring what was lost, the general managers
hired Victor Gomez. Renowned for being able to “turn around dying companies”.
In order to achieve the most cost-effective way of delivering goods and services to the
required level of quality, the company must firmly control and minimize their costs and refrain
from incurring unnecessary expenses. The company must maximize the productivity and
efficiency of its resources and employees. Their production must be kept consistent, simplifying
processes, procedures and avoiding duplication. Their employee’s set of skills and materials
must contribute to the overall productivity and success of the company. Keeping their prices low
may help them attract more clients leading to increases in their profits.
KMC is a wood cabinet case manufacturing firm. Affiliated with a group of companies, it
was originally set up to support its group of companies’ main line of business. The company, as
with the other companies of the group, has a tie up with universities, colleges, and trade (also
known as vocational) schools for the students to do internship work with the company.
The company currently has a small organization size. Having 60 rank-and-file workers,
mostly carpenters. Around 10 were helpers. 20% went to carpentry apprenticeship school. The
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
rest learned the craft in the company. Mostly were town mates of the former general manager –
around 85%. With their age brackets being; 18 – 30 years old: 20 people; 31 – 40 years old: 15
people; 41 – 55 years old: 25 people. They must change their organization size into a large
With the objective of achieving the most cost-effective way of delivering goods and
services to the required level of quality, the company requires a large organization. With a large
organization, there are more people to divide tasks among, resulting in a higher degree of work
specialization. Large organizations have taller structures, having a longer, more structured chain
of command that results in highly structured jobs that are governed by many rules and
regulations.
KMC needs to have a lot of manpower in order to produce better results. Being more
formalized will aid them to produce more, work faster and better. Formal guidelines provide
directions for the workers, helping the workers focus more on their task at hand.
III. Technology
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
Given that KMC, as also implied by their company name, is a business that is engaged
with the manufacturing of goods, specifically wood case cabinets. There are a number of
equipment that are being used to produce the said goods. As mentioned in the case, the
employees make use of wood sawing machines which looked as if they were producing
rust. Sanding machines or “Sanders” are also being used by the workers to smoothen the
wood to be used in producing the wood case cabinets. The process involves a number of
different machineries. With that being said, their activities can be considered as a routine.
We believe that what they can do is further enhance their approach on routineness. Since
the majority of their workers under the production department are approaching
retirement, and that the strategy that we have in mind is cost minimization, we shall adapt
replacing the employees that would retire with machines that will make the woodworking
process more standardized and autonomous. The employees that will remain may focus
IV. Environment
a. Abundant
facilitate it’s growth. There are many opportunities in which the company may take
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
work.
b. Dynamic
Since the main source of raw materials that the company needs are trees, their
environment can be considered as dynamic. The wood that they use are sourced from the
Philippines which is a tropical country located near the pacific ocean. The country is
often hit with floods which shall affect the supply of wood that the company may avail
of. There may also be concerns towards the Excessive cutting of trees due to climate
change which may bring about further regulation from the Government. Due to this, there
is a demand for flexibility and urgency in terms of decision making to keep up with the
c. Simple
The company’s operations shall be mostly routine as changes with regards to the
operations are looking to be implemented, making it automated and standardized. There are also
no rapid changes occurring within the existing elements of KMC’s environment. With that being
said, we believe that KMC’s environment is simple considering also its predictability.
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
Mintzberg’s model
Mintzberg’s model suggests breaking down management roles and responsibilities and
organizing the workplace to simplify complex factors. With all the roles and work being
simplified, it would lessen the plates off the workers’ shoulders which gives them the
opportunity to be more focused on their work. This model helps to organize KMC into a more
efficient culture, as it allows each member to develop their own skills. When it comes to
managerial roles, managers are engaged in interpersonal, informational, and decisional roles.
Interpersonal roles involve being a source of inspiration for the whole team, acting as their
leader, and engaging in liaison activities between the group and other groups.
There are 5 key parts of an organization namely; strategic apex, technostructure, middle
line, support staff and operation core. In KMC, Victor Gomez is one of the strategic apex that
ensures that the organization follows its mission and manages its relationship with its
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
environment. The technostructure are the managers such as technicians, engineers, etc that would
be hired in the organization to help manage the working process. One part of the organization is
the middle line manager, KMC production manager is Roger he is with the company since its
inception he is also the one who assigns designated work for each employees in the production
line, the next key part of the organization is the operating core this employees specifically
assigned to do the products they are the carpenters they are one of the most important members
of the group since they are the group who do basic work necessary for the production operations,
support staff are the one who manage in each department that is related to the steps in the
production line.
which shows that organizations can be bureaucratic without being centralized. This model
perfectly fits the needs of KMC because the goal of this model is to innovate and provide high-
quality services which can help improve the company. This emphasizes the power of expertise,
so with Victor Gomez being the general manager, the workers would have to obey and follow
the rules of Mr. Gomez since he’s got the upper hand based on his experiences and knowledge.
As mentioned also in the case, the workers tend to spend as much time talking to each other as
they did sanding the cabinets. With this model, it would prevent them from doing so and will be
well, common and both old and new employees are knowledgeable of this design. The
Bureaucracy design is best fitted for KM because with new equipment and employees, it is best
to have a narrow span of control for it provides better supervision between managers and their
employees.. Most specially the fact that KM will continue to grow due to its connections with
other companies, schools and colleges. With this bureaucratic and hierarchical design, it’s easier
to manage and supervise even those in training considering these students or new employees will
have to reach the company standard. Manufacturing companies are more routine based, for each
step of creating their products should be exactly the same, this goes the same as each department
rules and regulations to promote safety and efficiency in the manufacturing process. These
protocols allow employees to know their job, the importance of their job and the standards of
their job.
Board of
Directors
CEO
General
Manager
Plant
Operations
I. Work Specialization
a division of labor where the work process is separated into a number of tasks that
are located in each section of the two-story building. The company intended to
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
fall on one person at the end of the work process. Although it is an efficient way
more specific, since Victor observed that workers spend an equal amount of time
chatting among themselves as they sanded the cabinets that were ready for
varnishing. It was found that there is low productivity in the assembly line
consequently slowing down the process. Aside from this, there is a high rate of
specialization the employees return to the same environment whenever they come
back to work. There is no rotation of jobs that would help prevent workers from
II. Departmentalization
without these functions the company would fail to operate properly. Each
department is responsible for their line of work; however, they are also
accuracy since employees would not be bombarded with numerous tasks. They
only need to focus on the tasks they specialize in. In the event of overlapping
tasks have gone through the proper processes throughout the different concerned
departments.
is in charge of whom and who has the authority to make decisions. It is a line of
authority that extends from the top to the lowest ranks of the organization. Each
authority that enables them to supervise the work of the employees and keep them
in line. They make sure that employees are not wasting company resources and
especially when the new design includes different departments that the company
didn’t have before like the Sales and Marketing department for example. The span
of control of KMC is vertical since there are other levels of middle management
between the board of directors, CEO, and of course the staff like the carpenters. In
manager ,who in turn reports to the CEO of the company, wherein they have to
seen in the organizational chart. This allows KMC to focus and gives managers
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
better control especially when the company is originally set up to support its
group of companies’ main lines of business. Lastly, in the context of height, the
company has a tall structure as there are many levels in an organization. There is
monitor and address why employees are getting sick and so that what happened
it may not necessarily be reflected on the organizational chart. The flow or the
the top management. From the organizational chart of KMC, it could be seen that
the staff reports to the HR analyst then he/she reports to the HR manager and the
final report would move up the ladder until it reaches top management. Since the
company was built in the mid- 1970s and is still currently operating until today, it
is assumed that the company has grown over the years and is already in later
VI. Formalization
company has high formalization wherein the degree of jobs within the
manufacturing firm, carpenters get to cut wood, put it together, sand it in order to
smoothen the surfaces, and finish it with varnish. They get to do this every time
for production, especially since the company has been operating since the mid-
1970s even though there are some machineries involved to make the job somehow
easier and more efficient. It was also in Victor Gomez’s notes that the former
for a furniture set especially since the company had a skilled carpenter in
customized undertaking since the company does not usually take special orders
and only standardized ones. High formalization also reduces ambiguity and
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
Plan how you will design the work of your operating core to enable it to be a productive
Organizational
The organizational factors will be able to address needed adjustments that will allow
KMC to function more effectively. This involves organizing and combining several tasks into a
single job or a series of jobs, as well as dividing the tasks between two or more working teams
that can collaborate closely. It also aims to improve employees' health by allowing them more
control on the job and thereby reducing the work-related stress which may result in serious
health problems and illnesses. This results in a more engaged, healthy and productive employees,
The various factors under organisational factors include work nature, workflow,
a. Work Nature
● Planning- This requires deciding the course of action in which timing and resources are
required. The general managers may set and delegate a deadline for each task and worker
● Executing- With KMC having different job areas, the general managers may design a
suitable workplace for the workers in order to carry out a smoother and safer execution of
work.
the production staff at KMC. This requires managing and monitoring production
processes and staff and ensuring that the process is as efficient as possible without
● Controlling- In KMC, monitoring and controlling production or operation may aid the
company in meeting their goals. This requires taking corrective action when required in
order to ensure quality, efficiency and productivity. This later improves customer
satisfaction and the potential for the business to retain and have repeat customers over
long periods.
A completely integrated job will include all these elements for each of the tasks involved.
The workers (or group of workers) must be given goals and objectives in terms of output,
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
quality, and cost targets, decide on how the work is to be done, assemble the resources, perform
the work, and monitor output, quality, and cost standards. Some functions or tasks can be split
between a team working closely together. If the jobs are more complex, individuals may carry
out one main task, each with a number of functions or these tasks may be allocated to a group of
b. Workflow
As KMC is a wood cabinet case manufacturing firm, their wood cabinet production
influences the sequence of jobs in the company. Their production process can be costly, time-
workers, and minimize errors, the tasks involved in a job needs to be sequenced and balanced
amongst workers. Their work and work area must be arranged strategically. In KMC, the
sequences of tasks must be determined, and then the balance between tasks is established.
c. Ergonomics
The use of the concept of ergonomics helps in designing a job by providing clues as to
how social, technical, and individual characteristics can be matched. It deals with the alteration
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
of the location of tools, switches, and other facilities, keeping in view that the handling of the job
In designing and shaping a job, the job requirements must match with the worker's
physical abilities to perform their job effectively. According to Victor Gomez’s notes,
● They have highly skilled craftsmen among the senior staff (40’s) leaving him to question
other skilled carvers and how many others of the carpenters have this skill.
The worker’s strengths must be maximized, making sure the assigned task is suitable for
their expertise, abilities and skills. Optimizing the abilities and skills of the workers may reduce
absenteeism and illnesses of the workers, contributing to KMC’s efficiency, productivity and
d. Culture
While designing jobs, culture must be taken into consideration. Organizational culture
determines the way tasks are carried out at the workplaces. Practices are methods or standards
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
laid out for carrying out a certain task. These practices often affect the job design especially
when the practices are not aligned to the interests of the unions. Culture aids in shaping the
organizational structure.
KMC acquires an organizational culture where the company values are not very strong
and not accepted by all workers. This resulted in their instability, lack of innovation, motivation,
low customer focus and high attrition. According to Victor Gomez’s notes, the workers have a
poor working environment in which the workers would spend as much time talking to each other
as they did working, various groups of men, each doing his task either too carefully or too
slowly, and high absenteeism because of illness. This resulted in an inefficient, and unimproved
organization.
KMC must promote a strong culture that provides clear expectations for employees about
their jobs and behavior. With a strong culture, the workers and management understand what is
required of them and they will try to act in accordance with the company core values, goals and
objectives. With a chain of command, it aids in fostering a sense of well-being in employees and
helps them to work towards the greater good of the company. Being built on a clearly defined set
of core values, policies being consistently applied, the workers may use their strong culture as a
creativity, collaboration, and innovation that leads to the strength and success of the company.
II. The theory (Herzberg’s, Taylor’s, or Hackman and Oldham’s) that you would use
Since there is set to be an emphasis on standardization of the organization’s operations, the focus
will be on the processes itself. Thus, we shall address the aforementioned factors through the
implementation of the said theory will be the most beneficial as it is also aligned with the
company’s strategy of cost minimization. By giving the staff specific instructions on how they
can and should perform their given tasks in accordance with the principle “science not rule of
thumb”, the company can cut costs and time as well as avoiding unnecessary expense of
resources. Since it was mentioned that Roger, the production manager, allocates the jobs, he can
be trained to further enhance his skills in allocating the said jobs by making them more skill
specific and specialized. Workers shall be put into the jobs that fit their skills the most. With
regards to the principle of “harmony not discord”, there shall also exist respect and a friendly
AGBAYANI, Alyssa Mae
ALAR, Jed Emmanuel Gabriel
CARLOS, Ray Rogil Benedict
CHUA, Jed Lester
GARCIA, Charles Ian
QUINTO,Irika Angela
REMORCA, Francis Martin
SAN JUAN, Franchesca Lee
relationship between the labourers and the managerial staff. Based on Victor Gomez’s
experience, it is something that may have been absent in the organization as the workers paid
him no attention despite being the General Manager. Unhealthy conflict within an organization
may further disrupt its operations which may result in further losses considering that KMC is a
manufacturing company. Since KMC is a large company, it is also important that its employees
help each other perform their best in order to achieve the company’s goals in accordance with the
principle of “cooperation not individualism”. The employees must see the importance of
cooperation towards achieving the same goals. The employees may be considered as the cogs of
the clockwork that is the organization. All of its cogs shall play a part within the company’s
operations. If one fails, the others follow and thus will cause greater problems for the company.
Lastly, considering the principle of “development of every person to his or her greatest efficiency
and prosperity”, there shall be training implemented as well as jobs designed to enhance the
workers’ skills and overall productivity. As employees are the heart of any organization, any
improvement from them shall contribute to the overall growth of the company which shall then