TOP STAR BAKERY On May 2, 1987, Manny Bautista was furious over the refusal of h

Question

TOP STAR BAKERY On May 2, 1987, Manny Bautista was furious over the refusal of his bakers to work overtime. Top Star recently accepted large order for 20,000 pieces of buns to bake and about 40% of the work force did not show up for no reason at all. The situation was aggravated further when the remaining workers refused to work overtime to complete the job. Manny felt furious and helpless at the same time. Company Background Top Star Bakery was established in October of 2005, as a Nacida-registered cottage industry engaged in the manufacture of bakery products. In 2016, Top Star entered into medium-term contract to bake "sesame seed buns for a local hamburger chain that had a total branch network of more than 8 outlets in Metro Mania. The sudden upsurge in demand prompted management of Top Star to consider an expansion program to triple its production output. Since then, Top Star had continued to grow with the hamburger chain, whose branch network reached 20 stores in 2017, almost triple its size in 2016. Top Star has at present, a total of 59 personnel composed of 26 production personnel, 8 delivery personnel, (including drivers and helpers). 20 packers and 5 office staff. Management-Labor Relations Since its inception, Top Star's management has been patemalistic. It allows workers to recruit their relatives and friends to join the company. Most of its employees are actually recommendees of the original few Labor turnover is low. Workers perceive management as sympathetic to them. Compared with other similarly situated bakeries, Top Star's pay rates are considered higher Moreover, its employees enjoy some benefits like free snacks for night shift-workers, provisions for emergency loan of up to one-month salary payable in six payday installments, free uniforms and medical checkup by the company physician. Overtime-Sharing Scheme When Manny Bautista assumed office as Production Manager, he was given a free hand to decide on operational policies concerning the production function. The owners seldom intervened in his decisions and presumed that the operational aspects were in good order for so long as the company maintained its profitability After the may 2 incident, many wanted to change a practice hich Angel Cruz started in 1982 regarding the manner of computing overtime pay of the bakers. In 1982, Angel devised a compensation scheme that avoided the payment of overtime pay. When a worker absented himself, his pay for that day was distributed equally among all those present. Management tolerated this practice on the assumption that the level of output would not change in spite of the absences. Before its implementation, angel observed that the bakers themselves could adjust their working time by either accelerating their movements or by deliberately slowing down their work. To illustrate, if 3 bakers were absent for that day, their total salaries amounting to P162 (minimum wage pay of P54/day x 3) would be distributed equally among the remaining bakers, say 20. The amount each person got would therefore be equivalent to P8.10 (P162/20) for that

Explanation / Answer

The background of the study is the growth of Top Star Bakery. The bakery started in 2005 and after partnership with a local hamburger chain, has grown three times in last one year. This sudden growth in the organization has caused certain instability in how the company grew. The change management process has not been exactly smooth. The workers at the factory are mostly personal references and relatives of one another. As a result, even though there may not be any official union at the bakery, the behavior of the workers tend to be of a union movement. The main problem of the study is implementation of change. Manny Bautista wants to implement a change in how the overtime is paid out to the workers. In addition, he wants to reduce the headcount of the workforce. However, he feels that such decisions may not be taken lightly the employees. Especially considering that most of them are tightly knit family members or friends. Hence, the main problem is – How will Manny Bautista go about making the changes.

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