School of Graduate Studies

Central Philippine University

Jaro, Iloilo City

FINAL EXAM: CASE ANALYSIS

Raquel L. Polec-eo, Ed.D., RGC

Director
Guidance Services Center
Central Philippine University

In partial fulfilment
Of the Course Requirements
In Production and Operations Management
MBA 601

Submitted by:
Joynen A. Baldevarona
October 20, 2017
 I. Point of View
James Reyes has a machine shop business which was product of his perseverance and hard-
work. From small-scaled business, it has grown into over 600 employees in the span of 8 years.
However, despite the growth of his business, it has come to the point where it is starting to
decline because it was overwhelmed by new competitors and challenges within his turf. There
is an absence of organizational structure, ineffective communication, lack of effective
leadership and stagnant workforce.

II. Statement of the Problem

The purpose of this paper is to identify factors needed to be improved in the
organization of James Reyes, so that there will be structure, development, improvement in
leadership and gain of market control.

III. Objectives
To redesign the organization by establishing structure
To have a clear, established and well-communicated objectives and job roles
To empower and manage employee performance
To regain market control

IV. Areas of Consideration

STRENGTHS
James is well-equipped with
knowledge of the industry his
business is in.
James is passionate about his
venture.
James is very hands-on on the
financial, marketing and designs
of the products.
Business grown into over 600
employees and lasted eight years.
WEAKNESSES OPPORTUNITIES THREATS
Poor management system and James can develop organizational
absence of organizational structure to exhibit authority and Competition
structure. deligation of responsibilities.
Hiring of employees who are expert or
Employees were paid more than
above-average in terms of skills and Employee turn-overs
they were worth.
intelligence.
Employee motivation and Formulation or reorganization of Losing new market and profit
enthusiasm were declining. mission, vision or objectives. opportunities.
Missed business opportunities. Skills training for employees.
There is no effective
communication channel.
Objectives of the company were
only known to James.

Decisions were made without

knowledge and input of the owner.

Lack of professionalism and Dishonesty and corruption.

Owner has loyal and trusted
respect to orders. Concentration to market.
employees.
Marketing strategies were not
effectively implemented. There is
innovation and updated strategies.

Poor in skills and knowledge of

employees.

There is no skills-training or
advancement for employees.
V. Alternative Courses of Action

ACA 1: James Reyes should improve his Management System by subdividing the task
into categories according to employees functions.

Advantages:
There will be detailed planning and James can manage the core competencies
needed to make the business good.
Employees will be more informed of their tasks including what needed to be
delivered and their boundaries.

Disadvantages:
Changing the management system can take time. If not properly and cohesively
transitioned to employees might cause them confusion and resistance in
performing their assigned tasks.

ACA 2: James Reyes needs to overhaul and redesign the companys organizational
structure.

Advantages:
Hierarchy and level of authority will be highlighted and insubordination will be
properly addressed.
James can hire new and competent employees who will occupy some of the key-
roles or lead each division to improve efficiency and productivity.
Company objectives and policies will be properly cascaded and implemented.
Strategic-planning will be more efficient and decision-making will not be solely
dependent to James Reyes.
A better and efficient compensation system will be in place. Compensation shall be
regulated according to worth, skills and performance.

Disadvantages:
Creating or redesigning organizational structure involves a lot of resources such as
money, time and effort.
Hiring new and competent employees for key-roles might cause resistance
especially from the tenured employees who are Jamess relative or friends.
Change of policies especially in the compensation system might bring protests
from those who were earning more than what they were worth.

ACA 3: James Reyes needs to increase standardization and formalization, and also
introduce rules and procedures for control.

Advantages:
Increasing the standardization and formalization will improve the efficiency and
effectiveness of the company.
 Introduction of rules and procedure for control will manage employees
performance and there will be less chances of orders to be not carried out.

Disadvantages:
Involves money and time.
Excessive formalization, may stifle employees creativity and innovation as well as
slowing the organization's responsiveness to critical issues and problems too.
Risk of resistance from employees.

VI. Recommendation

I recommend alternative two (2) which is to overhaul and redesign the

companys organizational structure.
The alternative may sound and appear ambitious but I believe this is what the
company of James Reyes needs. Intuition, enthusiasm and personal drive may be helpful
and advantageous to James when he was still starting but are no longer enough at this
point. His company has grown much and as described in the case employs over 600
employees and resembles a manufacturing company. He also needs to grow as an
entrepreneur especially on the aspect of management, marketing and operations.
Redesigning the organization may need funding, more time and effort but is a
necessary move and if not done will cost him his business. He is losing his market, his
people is losing their motivation and drive to the extent that his orders were not being
carried out.
By redesigning the organizational structure, hierarchy and level of authority will
be highlighted and insubordination will be properly addressed. Also, one of the
companys weaknesses despite having tenured employees is their average skills and
intelligence. Hiring competent people to lead each division will guide them into the right
direction and planning will be more effective and protective.
Finances will be properly handled, operation and production will be effectively
supervised and employees will be given due attention and managed well. The
management can develop initiatives to boost the motivation of employees and make
them productive again.
Having reliable and competent colleagues will help James into making strategic
plans to regain control of the market and decision-making will not just be solely
dependent to one person. James is still the head, the boss but as the idiom goes two
(more) heads are better than one.
 VII. Program of Implementation
TASK OBJECTIVE PERSONS/ RESOURCES INVOLVED

To have guided and cohesive planning.
Consult an expert regarding plans to
To identify factors that will have
reorganize the organization structure.
implications on the current operation.
James Reyes, current key employees and
colsultant.
Resource needed: fundingand time

To inform them of the reorganization and

explain why it is needed. Present the
current situation of the business and the James Reyes and employees.
Discussion with employees regarding the
challenges it is facing. Making them Resource needed: Time and venue for
plan.
understand the implications when the discussions
plan is actualized and if not
implemented.

To concretize plan, identify departments

needed and positions to fill. Identify
each position's roles and responsibilities.
Identify key employees that are James Reyes, current key employees and
Conceptualization of the plan, FTE needed
qualified to be promoted and assume colsultant.
and budget needed.
positions. If none, how many FTEs Resource needed: funding and time
needed and suggested salaries. Facilities
needed to provide such as office space,
tables, chairs, computer and other tools.

Building or creating office space,

procurement of facilities and tools,
assigning employees into what
department based on current tasks and James Reyes, current key employees and
skills. Letting go of employees that are colsultant.
1st phase of Implementation
proven to be no longer needed or Resource needed: funding, space and
considered as liabilities (employees that time
has offences such insubordination,
dishonesty and etc.). Hiring of needed
FTEs.

Orientation of new FTEs. Discussion with

2nd phase of Implementation
Final implementation
key employees regarding objectives and James Reyes, current key employees and
update it. Discussion of plans per colsultant.
department and their goals. Adjustments Resource needed: Time
needed.
To formalize the new system and
James Reyes, key employees and
implement identified changes and new
colsultant.
policies. Orient employees and conduct
Resource needed: funding and time
trainings

To monitor progress of the reorganiztion,

evaluate the positive and negative James Reyes, key employees and
Monitoring and Evaluation effects, get feedback from the employees, consultant(if still needed)
employees. Address concerns and plan Resource needed: funding and time
measures to improve lacking aspects.