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Best Engineering Consultancy Inc.
Transcript of Best Engineering Consultancy Inc.
III. Causes of the Problem
IV. Alternative Courses of Action
As mentioned before, the number of engineers directly employed with Best diminished from 30 to 5, almost a 90% decrease. It is because some of them are being terminated due to customers’ complains that has created another company problem which is the low quality of work but with a high value and not on time. And that is also the reason why the chief engineer got disappointed that he resigned.
Engineering work of low quality but with a high value- there is a possibility that the problem is pertaining to the employees’ performance and timeliness which does not surpass the customers’ satisfaction.
Miscomputations and misappropriation of costs occur because of improper charging of costs to project’s budgets. Miscomputation pertains to incorrect performance of computations. While misappropriation of costs is the intentional, illegal use of the property or funds of another person for one’s own use or other unauthorized purpose, either by public official, a trustee of a trust, or by any person with a responsibility to care for and protect the company assets. In short, it is defined as fraudulent use of funds/money by a person/s, entities other than their legal or rightful owner.
Lastly, Best is facing a need for another strategy after the partnership because their partnership with the outsourcing firm will be ending on the next year. But if we will pre terminate the contract; it will cost them a penalty of Php 100, 000.00.
Case No. 3
Thursday, March 20, 2014
I. Executive Summary
V. Recommended Solution/ Implementation/ Justification
As for the recommended solution, the company will implement the Strategic Choice Perspective. This theorizes that an organization not only adapts to a changing environment but also tries to reshape its environment. The company may develop ways on how to face environmental pressures- head on.
And for the contingency plan, there will be a corporate strategy. The essence of corporate strategy is to be able to improve both operational and competitive strategies. There should be a synergy between the operating units and thus, competitive strategies should support overall corporate strategies. These strategies actually solidify all the other strategies that will result to over all organizational performance. Since it is a long term strategy, this will be our contingency plan.
Best Engineering Consultancy Inc.
Best Engineering Consultancy, Inc., is an engineering firm who made a partnership with a consulting firm through an outsourcing arrangement to outsource some of its engineering functions. Suddenly, the company’s employees have been diminished from 30 to 5. Also, for the customers, the engineering work was of low quality but with a high value and beyond schedule. So the chief engineer got disappointed that he resigned. Because of resignations and terminations only five remained at Best, whereas originally the both firm had 30 personnel at the time of partnership. And it has been reflected in Best’s billing the consultant’s overhead costs and profits. The consultant charged the owner overhead costs to accommodate the employees that were moved to the new partnership office. Apparently, the budget should be determined and should stay within the boundaries allowed for the particular project. But the fixed costs of the project are not properly charged to the project’s budgets. As a result, miscomputations and misappropriations of costs occur.
Because of the situation, the CEO of Best got so bothered and worried. The contract between the two companies will end this subsequent year and if Best will pre terminate the contract, there will be a Php100, 000.00 penalty. So the company needs to think for another strategy to resolve the problem.
1. The number of engineers directly employed with Best diminished from 30 to 5.
2. Customers felt that engineering work was of low quality at a high value and beyond schedule.
3. The chief engineer has resigned.
4. Miscomputations and misappropriations of costs occur.
5. There is a need for another strategy of Best Company upon finishing their contract of partnership to the outsourcing firm.
1. There will be a corporate board meeting to discuss about what’s happening in the company and for them to develop possible solutions and quick response.
2. Work Redesign and People Management- because of outsourcing it is the job of employees in HR department in the company to hire personnel who have the expertise needed by Best, for them to evaluate, recruit and train that will enable the employees to be productive and improve the work performances.
3. Pay Structure and Benefits- employees in the company will be properly compensated and will have employee benefits to develop motivations in doing their jobs.
4. The company must improve the learning and growth system of the employees to enhance their work.
5. Customer Perspective- Best should focus on customers’ needs and wants to have the customer loyalty and satisfaction.
6. Financial Perspective- includes financial measures. It measures the flow of funds in a timely and consistent manner, where managers analyze the cost and how funds can realize customer satisfaction. Best must have this financial perspective also for avoiding miscomputations and misappropriation of costs in the company.
7. The company will have an increase for employees remained in the company and for them to be motivated, there will be promotions and recognitions.
Bagon, Angelica P.
Buquis, Irene D.
David, Alyssa Ohrellie D.
Lacerna, Ailene M.
Villanueva, Nica May M.