Eduardo Cuano - Compensation Administration Movement

Case 2: EDUARDO CUANO

April 26 2016

MGT 133 GROUP 3

ALMARIO, Andrea

BRION, Chiara Nicole

CUENCO, Jocelle

FLAVIANO, Kevin

MARTINEZ, Rico

SUMADSAD, Beatrix Keith

1. Point of View

The group will take the point of view of Mr. Ventura the general manager for eight years in the company. With all his experiences of supervising his people, he is the appropriate person to address the issue facing by the organization.  As a general manager he must be able to come up with alternatives that would enhance the entire organizational performance among employees, as well as to the organizational productivity.

1. Synopsis of the Case

Mr. Ventura was the general manager of the Chembag Manufacturing Corp which produces medium size synthetic sacks and other products such as scale mats and plastic sheets for packaging purposes. During his supervision of almost eight years, a problem occurred with his foreman Candido Lukban who was admitted to a hospital because of an illness and was said to be absent for more than two (2) months. Because of this, Mr. Ventura has to do something within the duration that Candido Lukban will not be around. Mr. Ventura then promoted Eduardo Cuano, one of the top men on the production line and who was doing well in his job. However, after the promotion, production line decreases quality and performance, and later suffers their entire shipment. Mr. Ventura wondered what had happened to Eduardo, since he is known to have a good performance. While sitting on his office, Eduardo talked to Mr. Ventura to be put back on his old position or else he’ll quit his job.

1. Area of Consideration

1. Assumptions

• Mr. Ventura handpicked Eduardo Cuana to be the new foreman based only on his performance. Being a foreman one should have the technical background, know how to solve problems, have the ability to lead and empower people, have a work ethic and also one should have a good communication skill.Sure, Cuano covers the technical background part of being a good foreman and have work ethics but the other characteristics are not specified.
• Eduardo Cuana is more comfortable doing physical jobs than supervising and directing other workers what to do.
• Mr. Ventura did not consider that there are employees that do not want to step up from the corporate ladder.

1. Important Case Facts

• Mr. Ventura was the general manager for eight years of the Chembag Manufacturing Corporation.
• The production foreman Candido Lukban was taken to the hospital with an emergency illness and was asked not to be reporting for more than two (2) months. With this, Mr. Ventura promoted Eduardo Cuano as an acting production foreman until Candido recovered.
• Eduardo Cuano was one of the top men in the production line. He is very willing to help and others as well as will stay after hours to ensure that the line would run smoothly in the next morning.
• During Eduardo Cuano, an unexpected downfall in the production line occurred. Mr. Ventura was not sure about what just happened since he believes that Eduardo is doing well since he was considered as one of top men in the line.
• Eduardo seemed to be dissatisfied with his take home pay.
• While sitting on his office, Eduardo walked in and talked about putting his back to his previous position, if not, will quit his job.

1. Problem Identification

1. Problem Flow Diagram[pic 1]

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Explanation

There seems to be two problems showing in this situation. First, the overall production rate is 12% lower as compared to where it was before three months ago, in addition to the fact that the quality of goods is getting low. This is because Eduardo’s performance as a production foreman is poor. Second, Eduardo threatens to quit his job if he is not transferred back to his old position. The two problems can be seen as implications of Eduardo not being satisfied with his take home pay. He is not satisfied because his overtime work was not compensated in his new job as a foreman. Hence, the problem in this case focuses on the proper compensation for Eduardo’s efforts.