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Intercorp Case Analysis

In: Business and Management

Submitted By iayc28
Words 1695
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Master in Business Administration

Xavier University – Ateneo de Cagayan

Human Behaviour in Organization

A Case Analysis on Intercontinental Philippines Corporation


Mr. Adrian Pabayo

August 13, 2011


Group 2

Marieanne L. Oliveros

Danilo Flores, Jr.

Nova Fernandez

Ann Alvaran

Irra Angela Y. Chiong

I. Problem

The highly regarded and close-knit group of experienced, “old-timers” of the Sales Accounting section of Intercorp is much dependent on the foundation of their long-built section. Possible assigned additional workload and various personnel somehow disrupt the behaviour and communication of each member of the group eventually affecting their productivity and efficiency.

II. Objective

To establish a sensitive and casual approach on loosening out the dependency of the section on each other. Any abrupt changes within arises uncommunicative and too formal behaviour among the members of the Sales Accounting section. It is necessary to provide effective means of how to ease-out the tightness of the group so positive and needed changes may be simply introduced.

III. Areas of Consideration

1. Gabriel Herran , manager of the Sales Accounting section of Intercorp.

- One of the first trainees hired specifically for the company’s Management Trainee Program and finished it becoming the youngest manager of the company.

- Recommended by his undergrad dean as having the natural qualities of leadership.

2. The Management Training Program

- Received various objection from some of the chief clerks and was questioned why outsiders where recruited instead of the present staff who they believed also qualify for the program.

- Trainees were required to work with the chief clerks since they know the day-to-day functions of each worker in the section. However, the chief clerks seem to be difficult on sharing the knowledge and familiarity with section’s functions and oftentimes refuse to offer information.

3. Mr. Herran’s leadership and persistence for the productivity of the group, is comprehensively shown in various events: The following are some series of events depicting Herron’s determined attitude toward handling and gaining the trust of the group.

- He was advised by the Controller that his promotion and appointment to the section manager’s will be the first tangible indication of the success of the entire program. Sam and his group were a very tight and cohesive group that some found it difficult to come into their group.

- Mr. Herrean noticed that the staff headed by Sam was too formal and indirectly have indifferent approach towards him. He regular talks to Sam on helping him regarding some functions and how to ease out the staff and be communicative to him.

- He handed out overtime slips which the staff has never been able to do so since and has always defended them.

- He treats them to dinner and constantly praises them for positive and productive results on their work.

4. The Sales Accounting Section was a close-knit group and is highly praised for their efficiency and is envied of their teamwork.

- They created a club namely the Bim Bam Bum club. Every month, they have organized functions including their families.

- Any one of the staff who finished work early would unfailingly help anyone who is still behind.

- Sam Sampayan, their chief clerk was well respected by the staff. They look up to him as a father. Any changes within the group may disrupt the relationship because of the environment that they have used to.

- They have not filed for overtime until the supervision of Mr. Herran after the workload brought by the sales promotion.

- Not one member was a striker.

- Only Sales accounting is not involved in the company’s rotation policy.

5. Sales promotion resulted to additional workload of Mr. Herran’s section. Overtime slips were submitted three weeks straight.

- Joe Collins, the section’s previous manager reacted.

- The entire staff worked hard on a new system to speed up work which has been effective and they allowed them to finish early.

6. Direct Sales Orders responsibility transferred to Sales Accounting

- Additional workload caused volume of transactions within the section. The group left the office at nine o’clock in the evening.

- Mr. Herran did not gave out overtime slips and thought of giving them out if the workload keeps the staff after the usual office hours.

- Sam refused the transfer of Dualan and Rosales – the previous employees responsible for direct sales orders. Sam claimed they were strikers.

IV. Alternative Courses of Action

1. Simply talk with Sam regarding his uncommunicative behaviour, discern the reasons for such behaviour, and call in the rest of the staff for other concerns. Such behaviour is not new to Mr. Herran since he has experienced this when he first started as the section’s manager and talking it out with the staff has always been effective.

A. Advantages - This would be an informal, personal conversation with Sam. Real reason behind his sudden behaviour would be recognized and proper remedies would be provided. - Mr. Herran possibly could praise them for their efforts and explain the occurrence of necessary and inevitable changes during the course of time in their work and careers. - An interactive dialogue would allow any held-back feelings to arise. Any resentment would be voiced out and identified. Mr. Herran can explain to the best of his ability, and feedbacks may be obtained from Sam and the rest of the staff. - Such feedback would entail suggestions from the staff regarding their personal issues and the new workload assigned. This would allow Mr. Herran on how to handle his staff for the current situation and for future events.

B. Disadvantages - Sam may not be totally open during the conversation. Any behaviour he presents would be eventually followed by the staff since they look up to him. Thus, no interaction will occur. - No proper positive result may come up. This would worsen the current behaviour and the rest of the situation. - Inevitable disagreements would take place and may create conflict and tension within the group. - 2. Include Sales Accounting to the rotation policy so they can adjust easily and they can be versatile in the future.

A. Advantages

- Rotation, as what the company intends, would promote versatility among the employees and eliminate undesirable dependence of a particular section on an individual or group. - IT would allow them to have knowledge and application on other tasks. B. Disadvantages –

- This would entail difficult and unwanted adjustments from the group, disrupting work attitude and current operations including costs to the company for possible errors caused by various responsible persons assigned for such particular function. - The cohesiveness of the group which allows them to be efficient would be compromised which could lead to unproductivity.

3. Engage in a personal talk with Sam regarding his sudden behaviour and encourage staff to host or join functions or activities with other sections.

A. Advantages

- As mentioned previously, a conversation with Sam would create a less formal way of concerns and issues raised. Any held-back feelings by Sam would be acquired and Mr. Herran as their manager could identify the reasons and provide remedies that would be beneficial to the company and to the group. - The talk would to an invitation or encouragement for the staff to be involved and open to other groups without breaking their cohesiveness. - Interactions and communication not just with other sections but with other employees as well. This would allow them to merge with other employees and understand other personalities which they could acquire beneficial insights from. - New personnel would not be difficult to assign. Added workforce, more ideas, fast turnover of transactions, less overtime, positive productivity. - Future changes would not be taxing to introduce and applied since the staff is keen on adapted changes. B. Disadvantages

- Proper explanation and encouragement to Sam and the staff for their willingness to participate. - Various personalities may clash. - Sooner or later there is a possibility for the group to join with other groups thus breaking the highly regarded efficient section. - This approach may take some time since it would take for individuals to adjust with other involvements and creating relationships with other people. - Costs and time may not be feasible.

V. Conclusion

When a team is at its momentum, it is hard to disrupt since the bond and cohesiveness brings out the best in the group. Positive results ensue. However, there are some instances when a closed box would need to be opened for changes to fill in. Dependency on what has been used to – system, people, environment- limits versatility, knowledge, interaction with diverse people, and inevitable changes. Some instances, attitude is affected especially because of sudden additions within the current environment. Adjustments acquire a big amount of time during the process. The Sales Accoutning section is undoubtedly efficient and teamwork driven. They have been praised and even envied for their tightness. But, any abrupt changes especially with regards to personnel additions and workloads, they seem to reluctantly welcome such changes. They become formal and stiff with their manager. It is necessary for them to be able to expose themselves to other situations, people, ideas, systems. As a simple talk would be necessary since this approach has been effective with Mr. Herran with regard to Sam and the staff, it is essential to gradually involve the staff to other activities that would entail their interaction with other areas especially with people. To not also break their close-knit group such activities may include team-driven friendly competitions – not only as the Sales accounting sections but merged with other staff of the divisions. New ideas would be acquired, new relationships with co-employees, and in a bigger picture the company would have a synergized group of workforce. It would entail a big amount of time to realize results from the sales accounting section but gradual application is good. No positive result is immediate. Such acticities should be interactive so the staff would be able to communicate freely, address some issues, and unlimited suggestions would be raised and considered. This could be done in a scheduled basis as deemed necessary, costs and time entailed should also be considered that it is for the necessary areas only. Encouragement and teamwork within the division would be critically important and not just for each sections for goals to be achived.…...

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