1.

Planning: National Book Company Delia de los Reyes was the founder and president of a publishing company specializing in collegiate textbooks. Because of her personal ability, expertise, and effective marketing promotion, the company grew rapidly and its sales of 10,000 in the first year reached P10 million five years later. The publication, production, and sales force also increased. However, the company was faced with a serious problem. New and old employees were making conflicting decision. One of the De Los Reyes partners suggested that the company needed planning and clear-cut policies and programs to guide decision making, but the president was not impressed. She maintains that if she concentrates in formulating plans and policies today, she might not have a company tomorrow. She believes it is best to solve problems as they happen.

2.

Organizing the Power Company I do not believe in organization charts or position descriptions of any kind in this company, declared Johnny Ramos, president and founder of the Power Company, manufacturer of mens ready-to-wear (RTW) suits and jackets. We are a successful and fast-rising company where I want all managers and labor to work as a team. Organization charts and job descriptions make people believe they own a position on a chart and want to keep it. We grew from a small company with P100,000 annual sales to a P5 million enterprise because we pooled our resources, coming up with competitive products at low costs. We are not San Miguel Corporation with its complex organization charts. Mr. Silang, the company comptroller, strongly defended the president, emphasizing that teamwork, not organization charts, is the key to success. Linda Ignacio, head of manufacturing, believed otherwise and declared the presidents view absurd and unprogressive. Ms. Ignacio said, I could not run my department without organization charts and position descriptions. As a matter of fact, I have them hidden in my desk where Johnny Ramos never sees them!

3.

Staffing: Christian Corporation

The department manager holds a regular staff meeting with her four section heads confining each meeting to one chief problem. On this day, the subject was the poor quality of the twenty supervisors reporting to the section heads. We have a rather poor record in selecting good supervisors, she began. We may have five or six who are outstanding, but there are too many who are not. What do you people consider when you recommend candidates to me? I think my best technical people make the best supervisors, said one section head. They have the respect of their associates and subordinates, who rate their technical competence highly. They can train new staff members very effectively, and in pitch in to do the most demanding job themselves. Maybe that is just the trouble, said the department manager. People like them may never learn to manage because they spend their time on technical work. Another section head said, I made my recommendation on the basis of seniority. It has popular appeal because everyone expects along this line. Do you think, said the manager, that age is the only, or most important criterion for supervision? Such a practice conveniently ignores everything learned about managing, or it assumes that the candidate has the capability to become proficient in management after getting the job. Is this realistic? In the course of the meeting, other factors such as getting along with people, making good impression, having the capability for further promotion, and being able to exact responsibility were also considered. The department manager was clearly frustrated and, as she ended the meeting, she remarked, No wonder we have a 40% failure rate in selecting supervisors.

4.

Directing: EDSA Radio and TV Company Bong Tadiwan founded a small radio manufacturing plant in EDSA in 1991. This business grew to become one of the nations largest radio, TV, and appliance production companies. By 1999, its sales approached P300 million annually with 15,000 employees and ten manufacturing plants. Throughout the companys growth, the founder was its active, imaginative and driving force. In earlier days, he knew every manager and worker and called them by their first names. When the company

grew fairly larger, people still felt that they knew the founder and president, and this strong feeling of personal loyalty helped make the absence of company union. However, as the company prospered, Bong Tadiwan worried that losing its small-company spirit. He also worried that his philosophies and objectives were not understood by the employees and that duplications take place because of poor communication of company policies among workers, thus affecting the development and marketing of new products. To solve the communication problem, he hired a director of communication who reported to him, and together, they utilized every communication device other companies use: bulletin boards in all the companys offices and plants; a company manual for every employee giving significant information about the firm; profitsharing scheme; company-sponsored courses on communication; monthly meeting at the main office for the top executives; annual three-day meeting of 1,200 levelmanagers and special committees to discuss company matters. After much time, effort and experience, Mr. Tadiwan was disappointed to find that his problems of lack of communication and the loss of small-company feeling still exist. In short, his measures failed significantly.

5.

Controlling: Charmie Consolidated Industries, Inc. I heard it in a management conference I attended, remarked Marie Ayala, president of Charmie Consolidated Industries, Inc., a small company whose new pleasure-boat products contributed to the companys growth of P5 million in annual sales since its founding five years ago. This idea of running a company by allowing department and section heads develop their own budget seems sound. But I cant afford it in this company. If I did, these people would spend so much money that we will soon be bankrupt. As long as I am President, I will tell my people how much they should spend. There will be no blank check and I will make sure the company comptroller gives the profit I expect. I have heard of too many fast-growing companies going red. This idea of variable budgets is even worse. What would happen if I let everyone vary his budget every month, quarter or year?