MGT 11 – PRINCIPLES OF MANAGEMENT AND ORGANIZATION
Second Semester, AY 2013 – 2014

Name: Marly Sison Shiela Marjorie Soriano Jomar Ortiz Kasey Ong
Block No. 14
Group 4 – Case 9.4: Electroparts Manufacturing, Inc. (B)

Problem:

Given the substantial adjustment in wages that the company’s rank and file employees would be receiving as a result of the new law, Mr. Sanchez was wrestling with the problem of what adjustment in the compensation of his supervisory staff would be “fair” under the circumstances. In addition to this immediate issue, he also wondered whether other changes should be made in the company’s current salary structure and compensation policies.

Solution:

In general, Mr. Sanchez is a hardworking person. In that case, his company must come up with an estimate monthly manpower expenses resulting from new law. The impact of the new wage on the product cost and profit is important on their company’s product price. In that case their wages will increase from the minimum wages that will cost another expense in their company. They need an alternative solution. By hiring more qualified staff. Lessen overtime jobs and expenses caused by the overtime pay since there are more workers to finish the jobs. It will help EMI cope with the demands since they have more manpower. Increase of labor force means increase in the production, thus, increasing the profit to be earned. By giving them reward or incentives. Motivate the workers to improve production; thus, may induce the possibility of decreasing overtime works. Lessen overtime pay since they receive incentives. By training the staff. It helps to improve their performance. Increases the staff’s efficiency and effectiveness. In that case they will be able to keep up with their import and export demands and will be able to cope with the changing rate of