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Ethical Dilemma:

Margins over Employees

Groups: 3 and 4
Learning Outcome # 2
I. Historical Background of Company
The company started in 1948 as an importer of construction materials for post-war
Manila. It was then known as MANILA TRADING COMPANY. Eventually, the
company ceased to import and instead began to manufacture for the local market. In
In 1974, the company changed its name to POWER ENGINEERING CORPORATION
(POWERCOR), to reflect its more diverse manufacturing capabilities.
In 2004, the company acquired its ISO 9001 and ISO 12001 certifications.
in 2010, the company upgraded its foundry facility by acquiring modern melting furnace
equipment from Mahima, Australia. It also acquired four (4) new CNC turning machines.
2.1 Product Lines:

2.3 Manpower

2.4 Customers

Automotive Castings (Brake Components,

Transmission Components, Engine Parts)
Glass Mold Parts (Blow & Blank Molds, Bottom Plate &
Inserts, Baffle Plate & Inserts, Baffle Plate, Blow Head,
Funnel and Neck Ring Bars)
Regula :
Contractual/casual: 134
80% Export / 20% Domestic
Toyota Corporation: Thailand, Philippines, Indonesia.

III. Ethical Dilemmas that affects Organizational Behavior and Business Performance
Due to strong competition in the automotive supply industry, Powercor has t manage its cots and
ensure the price competitiveness of its products. The company invested in training and
development program for its employees. Similarly, Powercor invested in technology for their
operations. However, due to lack of social programs for its employees, and focusing only in
productivity programs, the company treated its employees more as moving parts in a machine
than as human beings. The company even invested in a software technology to tract movements
and performance of employees. CCTV system were also placed all around the company to

ensure that employees are performing their jobs satisfactorily The company has conducted
several studies to find the fastest way to perform tasks in the warehouse. All employees are
instructed to follow the one best way of completing tasks for maximum efficiency. The logic
behind this strategy is to ensure that employees are customercentric, creating a cult of the
The workplace pressure at Powercor pushes up employee productivity while keeping hourly
wages at a barely livable rate. The speed required to complete tasks causes many employees to
struggle to meet targets and less skilled employees often fail. If an employee fails three times,
Powercor uses a three-strike policy and fires him or her.
As a result, productive capabilities that will increase Powercor profits were well funded to ensure
that the shareholders own prosperity will be protected.
Employees conducted a dialogue with Powercor management to express their disagreement with
the companys excessive use of power and its leadership. They expressed that company earnings
may still be retained and reinvested them in increasing the employees capabilities, but first and
foremost, the company should take care of its employees who helped make their firms more
competitive and prosperous. They should provided workers with higher incomes and greater job
security, thus contributing to equitable, stable economic growthwhat can be called as
sustainable prosperity.