GROUP 5

Diwata Gold Company

I. POV:​ Mr. Roque

II. Problem:
What type of control should be implemented in order to meet the necessary number of
personnels without compromising the efficiency of the work of each department and without
incurring additional cost to the company?

III. Assumptions:
1. ​Mr. Roque is an expert and his opinions and recommendations has basis and can be

trusted
2. ​The company is a large scale mining industry and has no plans of shutting down anytime

soon.
3. The company is having a problem in terms of cost cutting.
4. There is shirking among the employees.
5. There are contract/temporary employees.
6. It is believed that the companies has more employees than they currently need.
7. They are practicing operational control in the company.

IV. Areas to Consider:

1.​ ​The state of the Philippine economy during 1980s.
2.​ ​The laws and restrictions related to mining activities.
3.​ ​Mining industry -​The 1980s were difficult for mining in the Philippines.
4.​ ​The natural resources during that time (mineral reserves).
5.​ ​Calamities (e.g. Typhoons, Power shortages, etc.) that can be related to Mining activities.
6. Competitors (e.g. Nonoc Mining and Industrial Corporation, Philex Mining, etc.)
7. Central Office overhead and department costs
8. The inflation rate, interest rates, and mandated wage rates imposed by the government.
9. The size of each department and the job descriptions of the employees in the each
department.

V. Alternative Courses of Action:

1. Layoff some of the employees per department.

2. Monitor and conduct an assessment or evaluation to measure employees’ performance and
then take corrective actions.
3. Institute a hiring freeze.
4. Do not renew contracts of temporary workers.
6. Freeze salary and benefit increases.
7. Take advantage of normal employee attrition.
8. Schedule unpaid employee furlough.
9. Conduct a type of assessment of each permanent job per department. There should be
individual detailed job description. From this, we can determine the number of people needed
per job as well as per department. And then decide later on if there’s a need to lay off some
employees.

VI. Recommendation

The group recommends alternative courses of action numbers 2 and 9.

Monitoring and measuring employees performance as well as taking corrective action

afterwards is a basic in the controlling process of the organization.When you monitor and
measure the performance of the employees, they will feel the need to work hard because they
know that someone’s keeping an eye on them. This could also be a way to know if what you are
spending on hiring your employees is really worth it. If there are some employees who are
lacking, then, this is where the corrective action should play.

As for the assessment of the job descriptions per jobs in each department, this is also a control
method because we can determine if the number of people per job is sufficient, lacking or
excess. Since they have been a problem with the excess in the number of employees, this will
help them find out which department or which specific job they have employees in excess.
Using ACA #2, we can determine the employees that need to be retained to their position and
those that can be given a warning or can later on be laid off depending on the findings and
decision of the management.

Even though there’s been an issue of disagreement by the department heads with laying off
some employees, we believe that given the actions stated above, there won’t be a problem with
explaining to them the need to lay off those employees and how fair the process is going to be.