Republic of the Philippines

MINDANAO STATE UNIVERSITY

General Santos City

SCHOOL OF GRADUATE STUDIES

Master of Arts in Education
General Education

In Partial Fulfillment of the course

PA 203 Introduction to Organization and HRM

Written Analysis of the CASE

(Maggie Magasto)

Submitted by:

Dimple B. Mangalon, LPT

Submitted to:

Estela Marie O. Verana, DM

 “Why would I worry with all of my expenses? When I have my father to cover or shoulder

it for me?” Maggie, twenty-year-old, loves to spend her money on clothing. She lures herself to

beautiful dresses, shirts, and any other things without limitations. It has become her addiction to

spend her money without thinking thoroughly.

Maggie used to work on time every day. She concentrated on her duties and is always

courteous in her relatively few contacts. But because of her addiction with clothing, she has

opened several charge accounts with local merchants and allowed these accounts to be

overdue. She started writing checks against her account at the bank, when she knows she does

not have any money in the account to cover them. As these problems arise, Maggie become a

different person. She has begun to take her duties lightly and handles them indifferently. She

comes in late sometimes as much as 30 minutes, and takes unauthorized coffee breaks. She

also asks for days off rather too often.

Maggie come from a wealthy family that owns a local factory that employs 30 percent of

the City’s population. Maggie’s father is a prominent citizen of the community and a good

costumer of the bank. Mr. Magasto always maintains a substantial balance with the bank and he

always cover Maggie’s overdrafts. With this attitude of Mr. Magasto, she is not disciplining

Maggie but instead spoils her.

With this problem, it needs immediate solution but in due process. Applying the hot stove

rule, it should be immediate, forewarning, consistent, and interpersonal. With Maggie’s case, the

manager must first talk or discuss with Maggie with her attitudes toward work, her tardiness,

unauthorized coffee breaks and too often days off. After which, fair and just disciplinary actions

must be done as a result of her action.

As a manager, investigate first, before concluding something. You must not put into

action base only on the statements from someone. You must know what causes the problems to
address it properly and have the solution. As this problem has brought to you, you must act

accordingly and immediately to prevent this problem to escalates further.

Don’t act out of anger or any emotions. Investigate Maggie with her attitudes toward her

work in the company. Immediately, you understand the cause and effect of the offense. The

discipline was directed against the act not against anybody else.

Warn Maggie’s of her attitudes towards work remind her of the rules and regulations

previously issued to Maggie by the company prescribing the penalty for violation of any

particular rule so she cannot claim that she was not given a previous warning.

You must also be thinking of not only the now, but also the future effects of your actions.

You must put in mind the future of the company if this problem further escalates, how can this

problem will affect the company, how it will affect the employees, and even how it can affect the

entire organization. You must plan for the alternatives to be made, after which, in these

alternatives, list all the possible outcome if this alternative is to be taken, and from that choose

the best alternative to be taken.

You must also be consistent with the decisions that has been made. This is the problem

of Maggie’s immediate supervisor, he failed to do so. Because of the fear of Mr. Magasto,

Maggie’s father, he never addressed Maggie’s attitudes toward the company. Because of the

fear that Mr. Magasto that employs 30% of the City’s population will take his money to the

competitor. She let Maggie’s attitude pass because of that fears. Decisions must be based on

following the rules and regulations in the company, doing what is right and proper based on the

rules and laws under the company, not because of the fear of Mr. Magasto, Maggies father.

Consistency in the administration of disciplinary action is essential. Excessive leniency as well

as too much harshness creates not only dissatisfaction but also resentment. Implementation of

the penalty must be consistent and fair, not because Maggie’s father is a prominent citizen in
the city, she will have treated differently, because as long as she is employed in the bank, she is

just any other employee with the same prescribed rules and benefits. Because, other

employees will feel envy and jealous therefore reinforcing them to think that it is okay to deal the

work in the company lightly just like Maggie does.

Yes, given the fact that you have no right to question what she does after the office

hours but if it the company itself, her performance in the organization, then you should take

action to prevent further problems to arise.

The discipline is directed against the act, not against the person. After disciplinary action

has been applied, the supervisor should take the normal attitude toward the employee.

Interpersonal relationship must continue between the employee and the management. Give

advises to Maggie and let her realize the importance of thrifting, and let her understand the

difference between wants and needs.

The company should also provide trainings on financial literacy. According to Mason and

Wilson (2000), a financial literacy is a "meaning - making process" in which individuals use a

combination of skills, resources, and contextual knowledge to process information and make-

decisions with knowledge of the financials consequences of that decision.

By providing trainings on Financial literacy, it can help people with high levels of debt

correct course and better prepare themselves for retirement. Through this, employees can focus

on their work or to their roles in the organization as they will not think any other things to pay or

to cover their debt, thus increasing employee’s performance.

“Effective counseling often starts by helping employees to clean up their credit cards,

because that waterfall of debt is the absolute enemy of savings,” she noted. “Helping employees

to live within a budget and to make a financial plan can take away the stigma and stress”

associated with financial uncertainty.

 References:

https://files.eric.ed.gov/fulltext/EJ1083664.pdf

‘Wellness’ Programs Embrace Financial, Emotional Well-Being, SHRM Online Benefits,

April 2016