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    Case Study

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    Shane Kim
    The document contains 4 case studies about different management functions: 1) Controlling - The president of Charmie Consolidated Industries wants to tightly control budgets instead of letting department heads develop their own budgets, fearing they would overspend. 2) Directing - The founder of a large electronics company tried various communication methods but still faced problems of lack of communication and losing a "small company" feeling as it grew. 3) Staffing - A department manager's meeting discussed poor supervisor selection, noting choices were often based on technical skills, seniority, or popularity rather than management ability. 4) Organizing - The president of a clothing company believed organization charts and job descriptions hindered

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    Case Study

    Uploaded by

    Shane Kim
    39 views3 pages
    The document contains 4 case studies about different management functions: 1) Controlling - The president of Charmie Consolidated Industries wants to tightly control budgets instead of letting department heads develop their own budgets, fearing they would overspend. 2) Directing - The founder of a large electronics company tried various communication methods but still faced problems of lack of communication and losing a "small company" feeling as it grew. 3) Staffing - A department manager's meeting discussed poor supervisor selection, noting choices were often based on technical skills, seniority, or popularity rather than management ability. 4) Organizing - The president of a clothing company believed organization charts and job descriptions hindered

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    CASE-STUDY

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    The document contains 4 case studies about different management functions: 1) Controlling - The president of Charmie Consolidated Industries wants to tightly control budgets instead of letting department heads develop their own budgets, fearing they would overspend. 2) Directing - The founder of a large electronics company tried various communication methods but still faced problems of lack of communication and losing a "small company" feeling as it grew. 3) Staffing - A department manager's meeting discussed poor supervisor selection, noting choices were often based on technical skills, seniority, or popularity rather than management ability. 4) Organizing - The president of a clothing company believed organization charts and job descriptions hindered

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    39 views3 pages

    Case Study

    Uploaded by

    Shane Kim
    The document contains 4 case studies about different management functions: 1) Controlling - The president of Charmie Consolidated Industries wants to tightly control budgets instead of letting department heads develop their own budgets, fearing they would overspend. 2) Directing - The founder of a large electronics company tried various communication methods but still faced problems of lack of communication and losing a "small company" feeling as it grew. 3) Staffing - A department manager's meeting discussed poor supervisor selection, noting choices were often based on technical skills, seniority, or popularity rather than management ability. 4) Organizing - The president of a clothing company believed organization charts and job descriptions hindered

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    © All Rights Reserved
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    of 3

    CASE STUDY

    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
    company’s 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 budgets seems sound. But I can’t
    afford it in this company. If I did, these people would sepnd 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 checks and I will make sure the company comptroller gives the profit I expct. 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 target every month, quarter, or year?

    DIRECTING

    Bong Tadiwan founded a small radio manufacturing plant in EDSA in 1991. This business grew to
    become one of the nation’s largest radio, TV and appliance production companies. By 1999, it sals
    approached P300 million annually with 15,000 employees and ten manufacturing plants. Throughout
    the company’s growth, the founder was its active, imaginative an driving force. In earlier days, he knew
    every manager, and worker and called them by their first names. When the company grew fairly larager,
    people still felt they knew the founder and president, and this strong personal loyalty helped make for
    the absence of company union.
    However, as the company prospered, Bong Tadiwan, worried hat it was 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 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, together, they utilized every communication device other companies use: bulleting boards in all the
    company’s offices and plants; a revitalized house newsletter carrying news item from all company
    plants; a company manual for every employee giving significant information about the firm; profit-
    sharing scheme, company-sponsored course on communication; monthly meetings at the main office for
    the top executives; annual three-day meeting at 1,200 level-managers and special committee to discuss
    company matters.
    After much time, effort and expenses, Mr. Tadiwan was disappointed to find that his problems
    of lack of communication and the loss of ‘small company” feeling still exists. In short his measures failed
    significantly

    STAFFING
    The department manager holds a regular staff meeting with her four section heds confining
    each meeting to one chief problems. On this day, the subject wa 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, but there are too many who are not. What do you people consider
    when you recommend candidates to me?”
    “Maybe that is just the trouble,” said the department manager “People like them may never lear
    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 to be along
    this line,”
    “Do you thinks ,“ said the manager, that age is the only, or most importanta criterion for
    supervision?” Such practice conveniently ignores everything learned about managing, or it assume tht
    the candidates has the capacity 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 capacity 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 40% failure rate in selecting supervisors.”

    PLANNING
    Delia de los Reyes was the founder and president of a publishing company specializing in
    collegian textbooks. Because of her personal ability expertise, and efficient marketing, promotion, the
    company grew rapidly, and its sales of P10,000 in the first year reach P10 million five years later. The
    publication, production and sales force also increased.
    However, the company was faced with 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.

    ORGANIZING
    “ 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 men’s ready to
    wear (RTW) suits and jackets. “We are successful and fast-rising company where I want all mangers and
    labor to work as a team. Organization charts and job description make people believe they own a
    position with a P 50 million annual sales to a P 500 million enterprise because we pooled our resources,
    coming up with competitive products at low costs. We are not San Miguel Corporation with complete
    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 president’s 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 tem hidden in my desk where Johnny Ramos
    never sees them.
    l

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