The Globe Construction Company
THE GLOBE CONSTRUCTION COMPANY The Globe Construction Company top management held a management workshop one weekend in April of 1989 for the purpose of discussing present policies and procedures with the ultimate objective of formalizing these in a new company operations manual. The company was established in the mid-50s by Mr. Eduardo Concepcion. The company grew at a very fast rate due to the construction boom in the government sector during the administration of ex-President Ferdinand E. Marcos, During the seventies and early eighties, the company constructed large projects for both the government and private sectors. However, most of its projects were for the government. Globe enjoyed high margins from its government projects during this period. Competition was not a problem.
When Mrs. Aquino became President, private sector construction projects in the country outnumbered government projects. Competition became more stiff forcing Globe to reduce its margins when bidding for both sectors. This change in the environment led management to call the management workshop to discuss ways of improving organizational efficiency and effectiveness. The workshop was attended by the president, the vice-president for administration, the vice-president for operations, the purchasing manager and all the project managers ( See exhibit A for Organizational Chart)
Project managers are the engineers in-charge of construction projects. The company employs twenty project managers. At present, there are about eighteen on-going projects at an estimated Bid price of at least P100 million each ranging from office condominiums, shopping centres and government buildings. The purchasing unit is headed by a purchasing manager to whom buyers report. Each buyer is completely in-charge of purchasing materials required by one or more construction projects. The VP for operations is over-all in-charge of on-going projects.
During the workshop, one of the project managers,
When Mrs. Aquino became President, private sector construction projects in the country outnumbered government projects. Competition became more stiff forcing Globe to reduce its margins when bidding for both sectors. This change in the environment led management to call the management workshop to discuss ways of improving organizational efficiency and effectiveness. The workshop was attended by the president, the vice-president for administration, the vice-president for operations, the purchasing manager and all the project managers ( See exhibit A for Organizational Chart)
Project managers are the engineers in-charge of construction projects. The company employs twenty project managers. At present, there are about eighteen on-going projects at an estimated Bid price of at least P100 million each ranging from office condominiums, shopping centres and government buildings. The purchasing unit is headed by a purchasing manager to whom buyers report. Each buyer is completely in-charge of purchasing materials required by one or more construction projects. The VP for operations is over-all in-charge of on-going projects.
During the workshop, one of the project managers,