KOOKABOORA CONTAINER CORPORATION (From Business Organization and Management – Dr. Roberto Medina) When the Clark Special Economic Zone in Pampanga opened its gates for investors in light and medium industries, the Kookaboora Container Corporation (KCC) was among the first ten companies to locate in the zones’s premises. KCC manufactures containers of various shapes and sizes which are used by manufacturers of industrial chemicals, food products, cooking oil, motor oil and others. The production department of KCC is headed by Engr. Nicolas, a licensed mechanical engineer. He is a tickler for discipline. When even small mistakes happen in his department, he personally calls the offending employee and metes appropriate penalty. As a result, his department was judged best in efficiency. Very minimal wastage in materials and time were recorded by the department. Under the direct supervision of Engr. Nicolas are 10 supervisors who are graduates of engineering courses and with an average three years of work experience. Ten workers report to a supervisor. All of the workers are high school graduates. All employees including the supervisors and the workers are paid on a monthly basis. The workers, however, are required to produce a minimum number of units per day. During the slack seasons, workers are engaged only 50% to 75% of their normal working hours due to lack of sufficient job orders. No worker is laid off by the company and everyone receives full pay. This is so because of the strong recommendation made by Engr. Nicolas to top management. Slack season last up to three months. At the fourth month, job orders begin to pour in and everybody starts to cover 100% of their working time. On the seventh month of the current year, orders were received at more than the normal capacity of the company. For the first time since the company began operating, the department will be required to work overtime. No additional compensation will be given except for free meals in the evening. When Engr. Nicolas called the department’s entire workforce to a meeting, he explained the importance of accepting the additional orders and working on them on overtime. He said he is expecting everybody to lend a hand in the additional effort. When he asked for comments, only one indicated his availability. Engr. Nicolas could not believe the cold response of his subordinates. As hours pass by, the anger felt by Engr. Nicolas gets deeper and deeper and he thinks he can no longer contain it. He was thinking aloud” “What kind of people are these? During periods of less work, they are not laid off, and they don’t think of it as a favor! They could not reciprocate management kindness.” What are alternatives to address the problem? What are the pros and cons of each alternative?
KOOKABOORA CONTAINER CORPORATION (From Business Organization and Management – Dr. Roberto Medina)
When the Clark Special Economic Zone in Pampanga opened its gates for investors in light and medium industries, the Kookaboora Container Corporation (KCC) was among the first ten companies to locate in the zones’s premises. KCC manufactures containers of various shapes and sizes which are used by manufacturers of industrial chemicals, food products, cooking oil, motor oil and others.
The production department of KCC is headed by Engr. Nicolas, a licensed mechanical engineer. He is a tickler for discipline. When even small mistakes happen in his department, he personally calls the offending employee and metes appropriate penalty. As a result, his department was judged best in efficiency. Very minimal wastage in materials and time were recorded by the department.
Under the direct supervision of Engr. Nicolas are 10 supervisors who are graduates of engineering courses and with an average three years of work experience. Ten workers report to a supervisor. All of the workers are high school graduates. All employees including the supervisors and the workers are paid on a monthly basis. The workers, however, are required to produce a minimum number of units per day.
During the slack seasons, workers are engaged only 50% to 75% of their normal working hours due to lack of sufficient job orders. No worker is laid off by the company and everyone receives full pay. This is so because of the strong recommendation made by Engr. Nicolas to top management. Slack season last up to three months. At the fourth month, job orders begin to pour in and everybody starts to cover 100% of their working time.
On the seventh month of the current year, orders were received at more than the normal capacity of the company. For the first time since the company began operating, the department will be required to work overtime. No additional compensation will be given except for free meals in the evening.
When Engr. Nicolas called the department’s entire workforce to a meeting, he explained the importance of accepting the additional orders and working on them on overtime. He said he is expecting everybody to lend a hand in the additional effort. When he asked for comments, only one indicated his availability. Engr. Nicolas could not believe the cold response of his subordinates.
As hours pass by, the anger felt by Engr. Nicolas gets deeper and deeper and he thinks he can no longer contain it. He was thinking aloud”
“What kind of people are these? During periods of less work, they are not laid off, and they don’t think of it as a favor! They could not reciprocate management kindness.”
- What are alternatives to address the problem? What are the pros and cons of each alternative?
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