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University of Science and Technology of Southern Philippines

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Layla Miya

Engineer Oscar Pascua was hired as the new general manager of Buenavista Electric Cooperative, Inc. (BECI) in 1996. He discovered many problems including high electricity prices, 25% system losses, delays in supplies, irregular employee attendance, and increasing unpaid accounts. He recommended dismissing irregular employees, 20% salary increases, hiring more employees, and investigating system losses. However, the losses increased further. He should now fire irregular employees, limit salary increases, and continue disconnection notices for unpaid accounts while finding a new supplier and employees. Managing the cooperative successfully requires strong leadership and hiring qualified people.

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University of Science and Technology of Southern Philippines

Uploaded by

Layla Miya
318 views3 pages
Engineer Oscar Pascua was hired as the new general manager of Buenavista Electric Cooperative, Inc. (BECI) in 1996. He discovered many problems including high electricity prices, 25% system losses, delays in supplies, irregular employee attendance, and increasing unpaid accounts. He recommended dismissing irregular employees, 20% salary increases, hiring more employees, and investigating system losses. However, the losses increased further. He should now fire irregular employees, limit salary increases, and continue disconnection notices for unpaid accounts while finding a new supplier and employees. Managing the cooperative successfully requires strong leadership and hiring qualified people.

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Engineer Oscar Pascua was hired as the new general manager of Buenavista Electric Cooperative, Inc. (BECI) in 1996. He discovered many problems including high electricity prices, 25% system losses, delays in supplies, irregular employee attendance, and increasing unpaid accounts. He recommended dismissing irregular employees, 20% salary increases, hiring more employees, and investigating system losses. However, the losses increased further. He should now fire irregular employees, limit salary increases, and continue disconnection notices for unpaid accounts while finding a new supplier and employees. Managing the cooperative successfully requires strong leadership and hiring qualified people.

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© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
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318 views3 pages

University of Science and Technology of Southern Philippines

Uploaded by

Layla Miya
Engineer Oscar Pascua was hired as the new general manager of Buenavista Electric Cooperative, Inc. (BECI) in 1996. He discovered many problems including high electricity prices, 25% system losses, delays in supplies, irregular employee attendance, and increasing unpaid accounts. He recommended dismissing irregular employees, 20% salary increases, hiring more employees, and investigating system losses. However, the losses increased further. He should now fire irregular employees, limit salary increases, and continue disconnection notices for unpaid accounts while finding a new supplier and employees. Managing the cooperative successfully requires strong leadership and hiring qualified people.

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University of Science and Technology of Southern Philippines

CASE 8 - BUENAVISTA ELECTRONIC COOPERATIVE INC:


Masquerade

Introduction

Right after Engineer Oscar Pascua finished his electrical engineering course at FEATI

University in 1985, he was hired as an employee of the National Electrification

Administration (NEA). He was assigned to handle jobs in the various units of NEA until his

promotion to Chief Planning Officer in 1994. His main function was to supervise the

planning activities of his unit. Three engineers and two other employees reported directly to

him. His performance was rated very satisfactory.

                Engineer Pascua attended training sessions of various kinds including those for

management. He finished his M.B.A. course in 1995.

                When the position of general manager of the Buenavista Electric Cooperative, Inc.

(BECI) became vacant in January 1996, he was nominated by NEA. He got the post in March

1996. Aware of the many problems besetting the cooperative, he immediately went to work.

Background

When Engineer Pascua called the key officers of the cooperative to a meeting, he was

appraised of the following: that the price of electricity charged to BECI’s customers is the

fifth highest in the country; that 25 percent of the electricity service provided by BECI is lost

every month and cannot be accounted for;  requisitions for supplies and materials are served

after delays of as long as three months; some employees of the cooperative do not report

regularly for work; the increasing amount of uncollected accounts.


University of Science and Technology of Southern Philippines

Three days after the meeting, he recommended to the board of directors the following  The

dismissal from the service of employees not regularly reporting for work: salary increases of

up to 20 percent for every employee on the payroll;  the hiring of eight additional employees,

and the formation of a team to investigate and recommend measures to minimize “system

loss”.

Alternatives

Considering that Engr. Pascua is in a tight situation given that most of the employees

in the said corporation does not report regularly at work, he should give the threshold

responsibility of employee assessment to the Human Resources Department in trying to find

where and what could be the reason.

Moreover, having salary increases in a direct approach doesn’t improve employee

productivity at all. He has to add up at least a quarter of that percent per payday.

Proposed Solution

Engineer Pascua should get used to price of electricity charged to BECI’s customers

and its system loss, because instead of reducing the 25 percent system loss, it even went up to

26 percent. 

He should disband the team who investigates and recommends measures to minimize

system loss, because they just tell the customer that they will give a reward to those who

could report people using illegal jumpers and let their identity will remain classified.

Since there was no improvement in the requisition of supplies and materials. Delays

still reach three months, they should now try a new supplier for their supplies and materials.
University of Science and Technology of Southern Philippines

A new set of employees now do not report regularly for work. He should now fire the

set of employees now do not report regularly for work, then hire new ones. Continue salary

increases of up to 10 percent only and apply insurance accounts for every employee who’s on

the payroll. The amount of uncollected accounts increases and this cannot be undone and is

inevitable so it is advised to just continue sending disconnection notices at disconnect it when

deadline reaches.

Recommendations

Managing an organization is a very hard task, let alone a whole corporation

department especially this case Engr Pascua. Having great leadership skills is all part of the

process if he wants productivity be observed. It is valued that he must hire people in the

utmost of scrutinization and criticism to see of they are really fit for their job descriptions.

Soft skills are also needed to achieve this feat.

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