The Manager’s Dilemma

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A Case Analysis
Presented to
Prof. Teofisto P. Arenas, MBA, CPA
Graduate Studies
Universidad de Manila
by
Ms. Maria Concepcion Macaspac
 The Manager’s Dilemma
 

We are in the beer business. When our chief chemist

died last year, we pirated the chief chemist of our
competitor who has an almost similar beer. When he
moved over to our company, he offered me the secret
beer formula of our competitor. I turned the offer down
as I felt it would be unethical to use it.
In the meantime, we have done extensive research
ourselves and have developed a new kind, a beer which is
of great potential in the market. Naturally, our chief
chemist knows its formula.
 Lately, our chief chemist has brought as a lot of
problems. He has become a source of discontent in our
laboratory. He has become an autocrat who loves to
humiliate his subordinate in public. As a result of his
nasty behaviour, four of our very competent chemists,
who have been with us for year, have resigned.
I tried correcting him thrice, but to no avail. His
character flaw is so ingrained that there is no possibility
to change it.
I thought of firing him, but I know if I do, he will go
to our competitor and sell them our valuable beer
formula.
Point of View:

Management
Time Context:

Present Time
Statement of the Problem:
A nasty behaviour of chief chemist that
brought out problems and discontent to
the laboratory in one of the beer business
Statement of the Objective:
To be able to solve the problems and
bring back the harmony of the worker in
the laboratory
 Areas
of
Consideration
Strengths
That the management is the overall in-
authority
That the management pirated the chief
chemist of their competitor
That the management turned down the
offered formula by the chief chemist as
they felt it is unethical
Strengths
That the management tried thrice in
correcting the nasty chief chemist
That the management has the capacity
of firing the nasty chief chemist
Weaknesses
That the management knows that if they
do firing the nasty chief chemist, the
chief chemist will sell their beer formula
to their competitor
Opportunity
That they are in beer business
That the management done an extensive
research
That the management developed a new
kind, a beer which is of great potential in
the market
Threats
That their original chief chemist died
last year
That the pirated chief chemist knows the
formula
That the pirated chief chemist brought a
lot of problem to the management
That the pirated chief chemist become a
source of discontent in the laboratory
Threats
That the pirated chief chemist become
an autocrat and loves to humiliate his
subordinate in public
That four of the management’s
competent chemist, who have been in the
company for a years, have resigned
Assumptions
A. That the management will solve the
problem of the company regarding the
behavior of their chief chemist

B. That the management may bring back

the harmonious relationship of workers
in laboratory
 Alternative
Course of Action
 Alternative Course of Action - I

Select, train and promote 1 of the other

chemist employee and demote the nasty
chief chemist
Advantages
So that others will be given a chance to
become chief chemist
So that other employees will be
motivated and boost their morale
So that employee will develop their trust
and loyalty to the company
Disadvantages
If some employees are not qualified for
promotion
If other employees are not motivated
If other employees doesn’t trust and not
loyal to their company
 Alternative Course of Action - II

Hire a new chemist that will be the new

chief chemist of the company
Advantages
So that there will be a new and trusted
chief chemist of the company
So that the company may introduce a job
opportunity to others
So that the company may hire a newly
and fresh graduate applicant
Disadvantages
It would be unfair to the old chemist
employees
If there is no applicant to that company
If qualifications of applicants doesn’t fit
to the position
 Final Decision
ACA - I
Select, train and promote 1 of the other
chemist employee and demote the nasty
chief chemist
 Plan
of
Activities
 Persons Time
Activities Objectives
Responsible Frame
Gather all 201 files and To be able to identify -Chief HRD 1 day
set candidates in potential chemist
selected chemist employee to be trained
employee

Screen and evaluate To be able to select -Chief HRD 1 day

selected candidates for potential chemist
trainings employee for training

Train and send the To be able to enhance -Chief HRD 1 week

particular chemist knowledge and learn -Chosen
employee, if possible to more from experts chemist
some seminars, employee
workshops, and
trainings
Assign the newly To be able to replace the -Chief HRD 1 Hour
trained chemist nasty chief chemist with -Newly trained
employee to the the newly trained one chemist
position of chief -Nasty Chief
chemist and demote Chemist
the nasty one to a
regular chemist
employee thru issuance
of memorandum
Thank you…