Case Study Analysis

Prepared by:

Francis John Ibañez BSAB 3B

December 27, 2022

Case 8. KNIGHTS OF COLUMBUS: Stranger on the Shore
Ernie is a very likeable person. When he passed the board examination for Mechanical engineers as a
topnotch, he applied for a teaching job in the state university where he obtained his bachelor’s degree. He
and some former classmates were hired by the university.
Ernie enjoyed teaching and was in the course of his employment when he finished his doctoral studies in
engineering. He was elected vice president of the national association of mechanical engineers. Within ten
years, he was appointed dean, and then vice president of the university. After twenty years of excellent
performance in his job, he was installed as president of his alma mater.
It was not very hard for him to perform the job of the president because of his long years of association with
the university, first as student and later as professor. Some of the professors occupying critical positions
are his friends. His subordinates think of him as one is fair and honest in his dealings with people. They
supported him in many activities and projects including the social affairs he sponsored. During his term, the
university enjoyed a period of academic excellence.
A few months after Ernie retired from the university, he was elected grand night of the council of the Knight
of Columbus. His position is equivalent of the CEO of a private firm. He was very enthusiastic in his first
month in office. Later, he found out that managing the council is not as easy as managing the state
university.
Of the 200 members of the council, not more than 30 are regularly attending the monthly meeting. Ernie
finds it hard to improve the number of active members, he could not even get the required number to attend
the neurological services for deceased members.
Ernie is now thinking hard to find a solution to his problems.
QUESTIONS:
1. What could be the reason why Ernie is not very successful in his current position?
Answers:
Ernie is not very successful in his current position because first of all he is not trying to approach his
concerns for every member. He has the power but he does not know how to deal with it. He’s been working
and managing the state university for so long that it became difficult for him to adjust in managing the
council. Ernie expected that he enjoys working on the council just like how he enjoyed managing in state
university, little did he know, his new job, requires different managing and leadership style. His condition is
not that grim, Ernie was just inexperienced because he grow up with different kind of environment and did
not have enough skills to deal with current staff. He started a smooth career, which is why he’s having a
hard time dealing with people who have a different attitude than the first people she’s been working with.
In this case, when Ernie is managing a state University, his subordinates are so supportive with all the
activities he wanted to implement and are always active in participating such activities. But in his present
job, we can really notice that members of the council are not that active, in a sense that they didn’t have
regular meetings. That is why Ernie had a difficult time dealing in his current position, he cannot directly
consult his members unto what he really wants for the company.
2. What must Ernie do?
Answer:
As problem already stated, he needs to change his leadership style since he is in a new environment.
He can’t solve such different problems using the same solutions. Being a leader is like captain in a boat. If
you fail to execute your job, the boat will sink. Same assign organization, if you fail to do the function of
being a leader, you will face a big chaos. Ernie is a CEO meaning he has the power and authority to control
and plan the organization as best as possible. And also, he can use that power to deal the new
subordinates.
He needs some sort of adjustments and must bear in his mind that managing the council is not the same in
managing the state university. Ernie must know how to approach every member of the council and try to
layout policies regarding regularly policies of the member, he must provide specific consequences to evade
habitual absences during meetings. By doing so, he will be able to track the success of the member to the
board we will be able to promote policies and services for the organization with the significant approval of
the member. If he manages to do it all with the power vested in him, he might be successful and happy in
his current position.
Case 5. PR MOTORCYCLES: Till We Meet Again
Miss Amelia Rivera was a very effective officer in one of the biggest appliance dealerships in the
Philippines. She was much satisfied with her job not only because of the pay she receives monthly, but also
because the top management recognizes her value to the organization. Every morning when she arrives to
report for work, everyone she meets greets her out of courtesy and in deference to her rank. One day,
while in a birthday party she was introduced by her father to a long-time friend, Mr. Pedro Reyes, who
happens to be the president of a large motorcycle dealership. The company operates branches in all the
provincial capitals throughout the Philippines. When Mr. Reyes heard about Amelia’s job, he offered her a
bigger job in his company. The job offer was as HR manager and it comes with twice the salary she was
receiving from her current employer. Amelia’s father advised her to accept the offer and after a week, she
began working for Mr. Reyes. With complementary staff of five subordinates, she proceeded to
perform her new job with enthusiasm. Through written memos and personal calls, she laid out the
HR policies to the twelve regional managers of the company. Eleven of the regional managers, religiously
observed and implemented the HR policies, except Mr. Sotero Mantic who was assigned in northern Luzon.
On one particular weekend, the president called all the regional managers and Amelia to a
meeting to discuss the company’s HR policies. Amelia was asked to make a report but before she could
finish, one aspect of her report was criticized by Mr. Reyes. Amelia took the matter lightly, but as if on Mr.
Reyes cue, Mr. Mantic began to show disrespectful behavior towards Amelia. This he did even in front of
other managers. One of the managers told Amelia that Mr. Mantic is a bright fellow but he is not a high
performer, and he thinks highly of himself, and he feels he is indispensable to the company. Mr. Reyes
considers the regional managers as the workhorses of his company and so he provides them with all
incentives, financial or otherwise that he can give them. Amelia believes that this is the main reason why
Mr. Mantic behaves as he does. During the past few months, Amelia tried hard to win the respect of Mr.
Mantic, but all her efforts failed. One of Amelia’s subordinates reported to her that Mr. Mantic told her that
HR work is a waste of company funds. After some weeks, Mr. Reyes related to Amelia that
henceforth all recommendations for promotion of any employee would emanate from HR department.
After a few months, however, Mr. Mantic recommended one of his subordinates for promotion
and it was approved by Mr. Reyes without the knowledge of Amelia. When Amelia was informed by
one of her staff members about the promotion, she filed her resignation the next day.
Questions:
1. What, if any, did the president failed to do?
Answers:
Amelia was not consulted by the president, this was indirect opposition to his policy, which stated that
all promotions should come from the HR department. Furthermore, Mr. Mantic and Amelia had a strange
relationship, and approving his proposal, which had by passed the HR demands, was move to a cement
the rifts between Amelia and Mr. Mantic. For a president who is supposed to be a symbol of unity, he felt
short on both counts.

2. Do you agree with Amelia’s action?

Answers:
Yes, because for me with that kind of work of environment, it would be too toxic. Mutual respect to each
other’s work and capabilities should be practiced, because why would you hire her in the first place if you’ll
go and make a decision in her place? Moreover, Amelia did what she could to make amends to Mr. Mantic
even though she did him no wrong but make the company’s HR department better. Lastly, I just hope that
Amelia resigned more professionally.

Case 4. PONCIANO RETAILING COMPANY: Yesterday

Mr. Ponciano Samonte was 25 years old when he organized his business firm, Ponciano Retailing
Company. He asked Danny, the younger brother of his high school classmate, to join him in his newly
formed business.
As the years passed, the firm made good in the grocery retail business. Together, Ponciano and Danny
established one branch after another. Within a span of 20 years, 19 branches were established throughout
Central Luzon and Cagayan Valley.
The total number of employees reached 405 and everyone showed much respect to the leadership abilities
of the two pioneers. Ponciano and Danny worked in a mutual trust with each other. Ponciano always
consulted Danny on several important aspects of running the business. Danny was always busy training
personnel on several aspects of managing a branch so there has never been a shortage of managers.
Because of his loyalty and ability, Danny was well taken care of by Ponciano. He receives an executive
salary that was above industry standard, plus allowances and medical benefits. He is provided with an
executive car. He is authorized to make decisions on operational matters. To assist him in his task, Danny
trained two junior executives.
All went well until Ponciano died and full ownership and control passed to Ponciano's oldest son, Patrick.
What Patrick did was to slowly introduce measures to centralize decision-making. Previously. the store
managers had the authority to determine the types of merchandise to carry, the quantity, and the timing of
purchase. The recruitment and training of store personnel were functions exercised by the store managers.
The above functions, as well as some other tasks, are now performed by top management through a staff
in the central office. The changes introduced effectively reduced the authority and influence of the store
managers. Danny's authority was also greatly reduced.
Just a month after the decentralization order was implemented, Danny felt the demoralizing effect on the
managers and employees assigned to the branches. Sales dropped by two percent and a number of key
employees started to make moves to look for suitable jobs elsewhere. The rate of absences and tardiness
also began to go up.
Questions:
1. What do you think of the reaction of the employees regarding the decentralization policy of Patrick?
Answer:
The reaction of the employees to the decentralization policy implemented by Patrick seems to be
negative. According to the case study, the changes led to a drop in sales, an increase in employee turnover
and absenteeism, and a general sense of demoralization among the managers and employees. This
suggests that the employees were not supportive of the changes and likely felt that their roles and
responsibilities were reduced or diminished as a result of the policy.
The employees likely viewed the decentralization of decision-making as a reduction in their autonomy and
authority and felt demotivated by the new structure. Furthermore, the managers were previously able to
make decisions on various operational aspects, such as the types of merchandise to carry and the
recruitment and training of store personnel, which also contributed to their sense of responsibility and
ownership of the business.
These changes likely came as a surprise, which can increase the negative reaction, as the employees
haven't prepared for it and didn't have the chance to adjust to it, also the suddenness of it, might have
added to the negative reaction.

2. Do you consider the decentralization policy as a big mistake? Why or why not?
Answer:
Whether the decentralization policy implemented by Patrick is a mistake depends on the goals and
objectives of the company and the specific circumstances surrounding its implementation.
On one hand, centralizing decision-making can help to streamline operations and increase efficiency, which
could be beneficial for the company in the long run. However, in this case, it seems that the policy was
implemented without properly assessing its impact on the employees and the company culture, which led to
a negative reaction from the employees and a drop in sales.
Additionally, the previous decentralized structure seemed to be working well, with the company growing to
19 branches and having a respected leadership style among the managers and employees. By drastically
changing the structure, it could create uncertainty, mistrust, and demotivation among the employees, which
could have a negative impact on the performance of the company.
Furthermore, the previous decentralized structure likely allowed the managers and employees to feel a
sense of ownership and responsibility in the business, which may have contributed to the company's
success. By removing that sense of ownership, it could also lead to a decrease in employee engagement,
motivation, and ultimately productivity.
In conclusion, the decentralization policy may not necessarily be a big mistake, but it should have been
approached differently and with more consideration for the potential impact it could have on the employees
and the company culture, as well as an assessment of the previous structure's effectiveness.