Case Study: Why the Need to Change Artemio was appointed CEO of Rafol’s Enterprise upon the death of his father. The company went public under the leaders of Artemio and had to adapt to being open and transparent to outside investors. There were pressures from the shareholders to reduce cost and increase profits. In response, Artemio implemented cost cutting measures including downsizing by means of enforcing early retirement of employees who he felt could not cope in the move to digitize the operation of business. As expected, most of the employees were not happy and this affected the morale of their employees. Artemio sought the assistance of Ely Buenaobra, the VP of HR. Ely suggested a comprehensive program wherein it is not just the managers who would be evaluated based on achieving results but even the employees by means of demonstrating to their employees that their performance affects company results. This in turn will show to the shareholders that the company’s primary objective is to increase performance. 1. Do you agree with the proposal of Ely? Explain your answer. 2. If you were an employee of Rafol’s Enterprise, how would you react to the new evaluation system that will measure your performance vis à vis predetermined outcomes or objectives? 3. Who should be involved in developing employee outcome/objectives?

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter8: Strategy Formulation And Execution

Section: Chapter Questions

Problem 3CFCA

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Case Study: Why the Need to Change

Artemio was appointed CEO of Rafol’s Enterprise upon the death of his father.

The company went public under the leaders of Artemio and had to adapt to being open and

transparent to outside investors. There were pressures from the shareholders to reduce cost and increase

profits. In response, Artemio implemented cost cutting measures including downsizing by means of enforcing

early retirement of employees who he felt could not cope in the move to digitize the operation of business.

As expected, most of the employees were not happy and this affected the morale of their employees. Artemio sought the assistance of Ely Buenaobra, the VP of HR. Ely suggested a comprehensive program wherein it is not just the managers who would be evaluated based on achieving results but even the employees by means of demonstrating to their employees that their performance affects company results. This in turn will show to the shareholders that the company’s primary objective is to increase performance.

1. Do you agree with the proposal of Ely? Explain your answer.

2. If you were an employee of Rafol’s Enterprise, how would you react to the new evaluation system

that will measure your performance vis à vis predetermined outcomes or objectives?

3. Who should be involved in developing employee outcome/objectives?

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