POINT OF VIEW
The group decided to take the perspective of a consultant firm hired by the General Manager of Master Print Inc. (MPI).
PROBLEM STATEMENT
In October 1990, an upward minimum wage adjustment of P17 roused a nationwide strike that caused traffic queues all over Metro Manila. Some offices, including MPI, closed earlier than usual to keep employees from getting caught on the road. However, it was later reported how four MPI employees who went to the beer house after office hours got into a fight while arguing over the fairness of MPI’s compensation policies. Mr Villanueva, MPI’s general manager, has to re-evaluate MPI’s existing wage incentive system to address the tension arising amongst his employees allegedly due to inconsistencies in the implementation of MPI’s compensation policies.
AREAS OF CONSIDERATION
The consulting firm has specified several key factors for Mr. Villanueva to consider:
1. The national economy’s performance in the 1990’s. This is to recognize that his workers are also members of, and thus are affected by, an entity larger than the company; that is, the country.
2. The possible psychological impact of a wage increase on his workers. Reports by popular media on wage and salary compensations may have influenced the employees’ mind set.
3. The basis for MPI’s current compensation system and how its implementation affects interactions within the firm.
4. The staffing policies being followed by the firm in recruiting selecting, training and rewarding its employees.
5. The working relationships created by the company environment. (e.g. its culture and policies)
ASSUMPTIONS
The consulting firm made the following assumptions regarding the Master Print, Inc.’s case:
a The economy is not conducive for the wage increase given the fierce objection from the strikers. b Master Print, Inc. is capable of implementing necessary adjustments in the compensation system. c Master Print, Inc. does not have an