Chapter 4

Point of View

Time Frame

Objectives
1.To comment on the proposed new positions.

2.To review on the proposed organization chart.

3.To prevent the company from having too much

pressure in dealing with the customers.

4.To adapt the changing environment as the

company expands

Problem
The problem is that Engineer Lagayan (the
production manager) wants to give credible points
to raise on the proposed set-up in the executive
meeting given the available information on plant
expansion.
What is the most effective organizational
structure for the expansion of the
company?
What could be the best way to make the
companys sales force?
What could be the most appropriate
solution to easily distribute the labor in the
company as it expands?

Areas of Consideration

Alternative Courses of Action

To accept the proposed organization chart and

new positions as is.
Comment:
The proposal needs to be reviewed first by
the key company officers. The general
manager might have some mistakes.
 To propose an adhoc committee to contemplate
on the proposed set-up for a longer time (i.e. 1
month).
Comment:
It requires scheduling because the some of
the key officers are based at Makati Office
while some are at the Plant Site in Laguna.
To decrease number of machinists and helpers.
Comment:
Growing sales might mean better
maintenance of process equipment fabrication
of more equipment spare parts.
To hire a sales manager or officer for the
growing number of sales especially with the
addition of tissue holder to the product line.
Comment:
The general manager is already up to this
task.
To incorporate the product or market
organization structure into proposed set-up
(There will be two associate production
managers).
Comment:
 Since there are two production activities for
the plant (for stocks sold to the local market
and for those to the subcontractors), product or
market organization is recommended.
Particularly, this type is a market organization.
Decrease number of shifts per day from 3 to 2.
Comment:
Decreasing number of shifts per day from 3
to 2 might mean company savings but special
incentives are given to the production team
(i.e. 4 additional hours = 4 overtime hours).
To add subordinate officers to (1) the financial
manager and (2)quality control and research
and development manager.
Comment:
To be able to be called managers,
they must have subordinate officers to exercise
their authority.

Recommendation
Action Plan