Intercorp Case Analysis

Master in Business Administration

Xavier University - Ateneo de Cagayan

Human Behaviour in Organization

A Case Analysis on Intercontinental Philippines Corporation

To:

Mr. Adrian Pabayo

August 13, 2011

From:

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