Organizing the power company
I. CASE SUMMARY
“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 a successful and fast-rising company where I want all managers and labor to work as a team. Organization charts and descriptions make people believe they own position on a chart and want to keep it. We grew from a small company with P100,000 annual sales to a P5million enterprise because we pooled our resources, coming up with competitive products at low costs. We are not San Miguel Corporation with its complex 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 them hidden in my desk where Johnny Ramos never sees them!”
II. STATEMENT OF THE PROBLEM
The main problem of the company is that the president, Jonny Ramos and comptroller, Mr.Silang are not convinced with the essence of organizational chart in their company.
III. SET THE OBJECTIVE
To help Mr. Johnny Ramos and Mr. Silang understand the importance of the organizational charts.
To define the authority and establish responsibility that each employee have and make them understand how their roles in the company interrelate with one another.
To conduct an organizational chart in the company
IV. AREAS OF CONSIDERATION
Power Company SWOT (Strength, weakness, opportunity and threat) analysis
Workers are working as a team
The company uses resources efficiently and effectively
They have effective marketing strategies