Name: Hazen Yu

Section:

I. Title of the Case: St. Francis College of Commerce (3) ORGANIZING

II. Summary of the Case ( 3 pages)

St. Francis University is regarded as one of the best private universities in Visayas, and it is well
known for its degree programs in engineering and science. The University was a medium-sized
private university located in a major port in Visayas City, with a total enrollment of approximately
26,000 students, both graduate and undergraduate.

The University's main unit was the College of Commerce, which was divided into four major
fields: banking and finance, accounting, marketing, and business management. However,
following the new academic year's enrollment, the College of Commerce received only 3000
students, placing it far behind the College of Engineering, which accounted for more than a third
of the University's current enrollees.

The College already had 55 full-time faculty members teaching up to 5 courses per semester
and over 100 lecturers teaching one to three courses. Many of these lecturers were also
employed and worked elsewhere in town, and they usually taught offered courses in their spare
time. Mr. Santos, who had previously served as Vice Dean for Administration, was appointed
Dean of the College of Commerce following the retirement of the previous Dean in June 1988.
For the past ten years, the College of Commerce has experienced one of the most rapid
growths in enrollment in the University, resulting in more enrollees than other Colleges in the
University, despite the fact that the school's admissions standards were significantly higher than
those of neighboring colleges offering the same commerce degrees.

Mr. Santos is eager to improve the college's enrollment system. He believed that such
enrollment growth could be fostered by a collaborative effort of curricular improvements and
administrative changes that would improve the College's efficiency and effectiveness.

The College of Commerce was led by a dean and a vice dean who were responsible for the
college within the University and among a wide range of external constituencies, while other
officials were in charge of student records and services, accounting, supplies, maintenance,
class scheduling, and so on, which were considered administrative aspects of the college's
operations. Six academic department heads report directly to the College Dean. These
academic department heads directly supervised or managed full-time faculty members and
lecturers teaching courses within the department's subject matter area.

One of the changes Dean Santos proposed to the Rector of St. Francis University was centered
on these six academic department heads. He stated in his proposal that six departments are
more than what is required, citing the college's ongoing operating costs and the difficulty in
raising tuition fees. That is why he believes the College should reorganize by reducing the
current number of departments from six to three. He estimated that the College would save up
to 65000 pesos per year as a result of this reorganization because, in addition to their regular
salaries, department heads also receive a so-called "special allowance" ranging from 800 to
1200 pesos per month, depending on their position or ranking.

Dean Santos' proposal has received numerous criticisms and disagreements from various
department heads and regular faculty members. The department heads' main contention and
stance was that the current academic departments would result in a loss of academic identity in
the departments, which was supported by regular faculty members. They also claimed that
merging the departments would increase the size of each department and make interactions
between faculty and administrative heads more impersonal. Dean Santos responded to these
arguments by stating that the department heads are mainly opposed to this proposal because
they want to protect their current position and the benefits that come with it. He also stated that
one advantage of the proposal is that people can cross fertilize each other that’s homogenous
department is not necessarily needed.

II. Problems Encountered:

1) What is the advantage of reorganizing the College of Commerce from six to three
departments?

2) What is the disadvantage of reorganizing the College of Commerce from six to three
departments?
3) Do you recommend the reorganization of departments? Why or why not?

IV. Solution(s) for every problem.

1. Reorganizing the College could save up to 65000 pesos per year, which they could use
to improve their facilities or faculties, purchase some teaching equipment, and so on. In
addition, people can cross-pollinate where they can learn from other professors and help
them gain more knowledge.
2. The proposed reorganization could result in the loss of academic identity in various
departments. Furthermore, it is likely to increase the size of each department, making
interactions between faculty members and administrative heads more impersonal.
3. The Reorganization Proposal is very beneficial to the College in my opinion, and I would
recommend it. It is an efficient way to use and save university’s Funding. It could save
funds for the College which could be used to improve the facilities, to make the university
more sustainable, as well as improve the skills and abilities of the faculty members in
their respective departments by investing in them. The faculty are the backbone of the
university, and higher pay could result in a more productive workforce and more learning
for students.