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    Case Study 8

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    Janice C. Puspos
    Engineer Oscar Pascua became the general manager of Buenavista Electric Cooperative (BECI) in 1996. He learned that BECI had high electricity prices, 25% system losses, delays in supplies, irregular employee attendance, and increasing unpaid accounts. He recommended salary increases, dismissing irregular employees, hiring more staff, and investigating losses. However, a year later, prices remained high, losses increased, delays and irregular attendance persisted, and unpaid accounts grew. Pascua is now considering drastic measures but is unsure how to address unimproved services while retaining dedicated employees.

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    Case Study 8

    Uploaded by

    Janice C. Puspos
    33 views1 page
    Engineer Oscar Pascua became the general manager of Buenavista Electric Cooperative (BECI) in 1996. He learned that BECI had high electricity prices, 25% system losses, delays in supplies, irregular employee attendance, and increasing unpaid accounts. He recommended salary increases, dismissing irregular employees, hiring more staff, and investigating losses. However, a year later, prices remained high, losses increased, delays and irregular attendance persisted, and unpaid accounts grew. Pascua is now considering drastic measures but is unsure how to address unimproved services while retaining dedicated employees.

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    Case Study 8

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    Engineer Oscar Pascua became the general manager of Buenavista Electric Cooperative (BECI) in 1996. He learned that BECI had high electricity prices, 25% system losses, delays in supplies, irregular employee attendance, and increasing unpaid accounts. He recommended salary increases, dismissing irregular employees, hiring more staff, and investigating losses. However, a year later, prices remained high, losses increased, delays and irregular attendance persisted, and unpaid accounts grew. Pascua is now considering drastic measures but is unsure how to address unimproved services while retaining dedicated employees.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    33 views1 page

    Case Study 8

    Uploaded by

    Janice C. Puspos
    Engineer Oscar Pascua became the general manager of Buenavista Electric Cooperative (BECI) in 1996. He learned that BECI had high electricity prices, 25% system losses, delays in supplies, irregular employee attendance, and increasing unpaid accounts. He recommended salary increases, dismissing irregular employees, hiring more staff, and investigating losses. However, a year later, prices remained high, losses increased, delays and irregular attendance persisted, and unpaid accounts grew. Pascua is now considering drastic measures but is unsure how to address unimproved services while retaining dedicated employees.

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    Case Study 8: BUENAVISTA ELECTRIC COOPERATAIVE, INC.

    ,: Masquerade

                    Right after Engineer Oscar Pascua finished his electrical engineering course
    at FEATI University in 1985, he was hired as an employee of the National Electrification
    Administration (NEA). He was assigned to handle jobs in the various units of NEA until
    his promotion to Chief Planning Officer in 1994. His main function was to supervise the
    planning activities of his unit. Three engineers and two other employees reported
    directly to him. His performance was rated very satisfactory.
                    Engineer Pascua attended training sessions of various kinds including those
    for management. He finished his M.B.A. course in 1995.
                    When the position of general manager of the Buenavista Electric Cooperative,
    Inc. (BECI) became vacant in January 1996, he was nominated by NEA. He got the
    post in March 1996. Aware of the many problems besetting the cooperative, he
    immediately went to work.
                    When Engineer Pascua called the key officers of the cooperative to a
    meeting, he was appraised of the following:
    1.       That the price of electricity charged to BECI’s customers is the fifth highest in the
    country;
    2.       That 25 percent of the electricity service provided by BECI is lost every month and
    cannot be accounted for;
    3.       Requisitions for supplies and materials are served after delays of as long as three
    months;
    4.       Some employees of the cooperative do not report regularly for work;
    5.       The increasing amount of uncollected accounts.
    Three days after the meeting, he recommended to the board of directors the following
    1.       The dismissal from the service of employees not regularly reporting for work:
    2.       Salary increases of up to 20 percent for every employee on the payroll;
    3.       the hiring of eight additional employees, and
    4.       the formation of a team to investigate and recommend measures to minimize
    “system loss”.
    All of his recommendations were approved by the board, after which Engineer
    Pascua signed all the necessary memoranda to implement his programs. He made
    regular inspections of the activities of the various units of the cooperative.
    During the first week of March 1997, he convened the key officers for an
    evaluation of the past year’s activities. The following points were made clear to him:
    1.       no reduction in the price of electricity could be extended to BECI’s customers
    because no reduction in the overall cost of doing business was achieved.
    2.       Instead of reducing the 25 percent system loss, it even went up to 26 percent.
    3.       There was no improvement in the requisition of supplies and materials. Delays still
    reach three months.
    4.       There is a new set of employees who do not report regularly for work.
    5.       The amount of uncollected accounts increased from P 3.8 million to P 4.2 million.
    Engineer Pascua concluded that in spite of the granting of salary increases
    requested the rank and file, no subsequent improvement in services was registered. He
    is now considering more drastic measures but he is not sure if it is the right thing to do.
    In addition, he is also aware that there are some employees who are qualified and
    dedicated to their jobs.

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