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Case 10. INDIANA SALES: Skyline Pigeon Five years ago, Mr.Narciso Cortes was hired as salesclerk by Indiana Sales, a firm engaged in retailing and financing motorcycle sales. He was the first employee recruited by the newly assigned manager of Santiago City branch. When Mr. Cortes was hired, the branch was only one week old. Within five years, the branch had a full complement of twenty persons including the branch manager, a cashier, a credit and collection supervisor, a sales supervisor, and a parts and service supervisor. Mr. Cortes record as salesclerk was commendable and the branch manager was considering him for promotion as sales supervisor. The salesclerk’s job consisted of entertaining inquiries from prospective customers. If a sale is made he prepares the various documents required including the deed of sale, invoice, and receipt. The sales supervisor, on the other hand, was responsible for overseeing the activities of the salesclerk, the utility boy, the driver, the records clerk, the documents clerk, and the stock clerk. Oftentimes, the sales supervisor had to leave office at 8:00 P.M. due to the requirements of the job. Mr. Cortes indicated to the branch manager that he was happy with his job as salesclerk and he did not aspire to have a bigger responsibility. The branch manager, however, was very insistent, and he informed Mr. Cortes that the following month, he would be replacing the current sales supervisor who was going to be promoted as branch manager and assigned to another area. Since the announcement of the impending promotion, Mr. Cortes’ behavior began to change. Although the reports he previously prepared had been error- free the ones he was currently accomplishing were filled with some mistakes in computation. His perfect attendance record was now marked with a few absences. He easily got irritated when customers asked a lot of questions. The branch manager is perplexed and is now pondering on the wisdom of pushing through with the promotion of Mr. Cortes.

Learning Assessment 1. Assess the situation and describe what factor/s of motivation is not innate with Mr. Cortes. 2. Which motivation theory do you think is appropriate for Mr. Cortes. 3. Devise a plan or strategy to motivate Mr. Cortes to accept additional responsibility and perform as expected.

Mr. Cortes began to change when he knew that he will promote to become a sales supervisor and maybe he is not interested to his promotion due to the structure of the work as supervisor. Becoming a sales supervisor takes lot of responsibility because it is responsible for overseeing the activities of the salesclerk, the utility boy, the driver, the records clerk, the documents clerk, and the stock clerk. Oftentimes, the sales supervisor had to leave office at 8:00 P.M. due to the requirements of the job.
The motivation theory that is appropriate for Mr Cortes is Motivation-Hygiene Theory Also known as the Two Factory theory; Frederick Herzberg developed this in 1959. It postulates that different factors in the work environment result in either satisfaction or dissatisfaction; Herzberg referred to these as "hygiene" factors. Factors that lead to satisfaction include achievement, recognition and advancement, while those causing dissatisfaction include work conditions, salary and peer relationships. In general, the theory puts forth that supervisors must be able to effectively manage factors leading to satisfaction and dissatisfaction to successfully motivate employees.
My plan to motivate Mr Cortes to accept additional responsibility and performed as expected is to explain to him “what a supervisor can do?” and “what are the benefits of being a supervisor? “. Most of people accepted such as responsibility of being supervisor because they expected the big benefits such as salary, health support and others that can secure them in living.

Case 11. KOOKABOORA CONTAINER CORPORATION: Maybe Tomorrow 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 zone’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. Engineer Nicolas Aisporna, a licensed mechanical engineer, heads the production department of KCC. He is a tickler for discipline. When even small mistakes happen in his department, he personally calls the offending employees and metes the appropriate penalty. As a result, his department is adjudged best in efficiency. The department records very minimal wastages in materials and time. Under the direct supervision of Engineer Aisporna are 10 supervisors who are graduates of engineering courses and with an average of 3 years 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 slack seasons, workers are engaged only from 50% to 75% of their normal working hours due to lack of sufficient job orders. The company lays off no worker and everyone receives full pay. This is so because of the strong recommendation made by Engineer Aisporna to the top management. Slack seasons 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 are 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 Engineer Aisporna calls the department’s entire workforce to a meeting. He explains the importance of accepting the additional orders and working on them on overtime. He says that he is expecting everybody to lend a hand in the additional effort. When he asks for comments, only one indicates his availability. Engineer Aipsorna cannot believe the cold response of his subordinates. As the hours pass by, the anger felt by Engineer Aisporna gets deeper and he thinks he can no longer contain it. H thinks aloud: “What kind of people are these? During the periods of less work, they are not laid off; and they don’t think of it as a favour! They could not reciprocate management kindness!”
Leaning assessment 1. Examine and discuss the leadership style by Engineer Aisporna. 2. Cite reasons for Engineer Aisporna’s ineffective leadership style. 3. Assess the power should Engineer Aisporna utilize to influence his people to follow accordingly. 4. Based on your evaluation, propose the more appropriate approach between behavioural and contingency. Explain your choice.

Case 12. THIRST FIRST BOTTLING COMPANY: S.O.S Competition in the soft drinks industry is very intense that every mean to improve a company’s sales position are explored. Advertising and promotional efforts are heavy relied upon at the Thirst First Bottling Company to drum up customer’s interest in the company’s products. The company is engaged in the production and marketing of soft drinks. It operates plants, warehouses, and sales offices throughout the Philippines. The company has been serving the Philippine market for more than 50 years. The manager in charge of advertising and promotion is Mr. Rolando Calanday, a graduate of a marketing course in the College of the Immaculate Conception in Cabanatuan City. The advertising and promotion unit coordinates with advertising firms in the design and production of advertising materials like billboards, posters, and streamers. The unit often produces t- shirts more than P20 million annually for the purpose. Periodically, advertising and promotion unit sends the advertising and promotional materials to managers of the various sales offices of the company. The managers, in turn, hand over the materials to their respective sales teams for proper disposal. The drivers of the delivery trucks, with the assistance of helpers are directed to install the billboards and streamers on appropriate places and paste the posters in conspicuous corners of retail establishments. At the beginning, the drivers appropriate for themselves a small portion of the advertising and promotion materials. Some of the billboards are used as partitions in the houses of the drivers. The posters are used to reinforce the walls. The t- shirts are not handed over to customers but to family members and friends. The materials are clearly not used as intended but nobody in the sales offices questions the practice or even cares to know. One day, the general manager of the company, Mr.Marcelino de Vega, receives a letter from a concerned employee reporting about the unethical practice. Immediately, the general manager called Mr.Calanday and inquired on how he was getting about his responsibility of promoting the company’s product. Mr.Calanday’s reply did not satisfy the general manager. On the same day, Mr.Calanday received an order from the general manager to clear up the problem regarding the unethical practice or he will be replaced as head of his unit.
Learning Assessment 1. Propose an applicable strategic control to combat the intense effect of the competition. 2. Lay down possible approach that can used to control the pressing problem.

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