Ethical Dilemma: Margins over EmployeesGroups: 3 and 4
HumaBeh
Learning Outcome # 2
I. Historical Background of Company
The company started in 1948 as an importer of construction
materials for post-war Manila. It was then known as MANILA TRADING
COMPANY. Eventually, the company ceased to import and instead began
to manufacture for the local market. In 1967.
In 1974, the company changed its name to POWER ENGINEERING
CORPORATION (POWERCOR), to reflect its more diverse manufacturing
capabilities. In 2004, the company acquired its ISO 9001 and ISO
12001 certifications.in 2010, the company upgraded its foundry
facility by acquiring modern melting furnace equipment from Mahima,
Australia. It also acquired four (4) new CNC turning machines.2.1
Product Lines:
Automotive Castings (Brake Components,
Transmission Components, Engine Parts)
Glass Mold Parts (Blow & Blank Molds, Bottom Plate &
Inserts, Baffle Plate & Inserts, Baffle Plate, Blow Head,
Funnel and Neck Ring Bars)
2.3Manpower
Regula:
455
Contractual/casual:134
Market:
80% Export / 20% Domestic
2.4Customers
Toyota Corporation: Thailand, Philippines, Indonesia.
III. Ethical Dilemmas that affects Organizational Behavior and
Business Performance
Due to strong competition in the automotive supply industry,
Powercor has t manage its cots and ensure the price competitiveness
of its products. The company invested in training and development
program for its employees. Similarly, Powercor invested in
technology for their operations. However, due to lack of social
programs for its employees, and focusing only in productivity
programs, the company treated its employees more as moving parts in
a machine than as human beings. The company even invested in a
software technology to tract movements and performance of
employees. CCTV system were also placed all around the company to
ensure that employees are performing their jobs satisfactorily The
company has conducted several studies to find the fastest way to
perform tasks in the warehouse. All employees are instructed to
follow the one best way of completing tasks for maximum efficiency.
The logic behind this strategy is to ensure that employees are
customercentric, creating a cult of the customer.
The workplace pressure at Powercor pushes up employee
productivity while keeping hourly wages at a barely livable rate.
The speed required to complete tasks causes many employees to
struggle to meet targets and less skilled employees often fail. If
an employee fails three times, Powercor uses a three-strike policy
and fires him or her.As a result, productive capabilities that will
increase Powercor profits were well funded to ensure that the
shareholders own prosperity will be protected.
Employees conducted a dialogue with Powercor management to
express their disagreement with the companys excessive use of power
and its leadership. They expressed that company earnings may still
be retained and reinvested them in increasing the employees
capabilities, but first and foremost, the company should take care
of its employees who helped make their firms more competitive and
prosperous. They should provided workers with higher incomes and
greater job security, thus contributing to equitable, stable
economic growthwhat can be called as sustainable prosperity.
