CASE ANALYSIS

AERO ENGINE COMPANY

THE LAST STRAW FOR AERO ENGINE

Submitted by:
Marlon C. Manalo
Serene Villaluna
Shane Mariel C. Joaquin
Nelvin A. Bonagua

08 February 2020
 CASE TITLE: The Last Straw for Aero Engines
TIME FRAME: Present
POINT OF VIEW:
STATEMENT OF THE PROBLEM: Tom Kinder’s discharge from his work due to poor work
performance, excessive absenteeism, and loafing
OBJECTIVES:

 To re-assess Mr. Tom Kinder’s sudden termination from his employment;

 To re-engineer management’s decision-making body by creating peace and grievance machinery to
handle cases as stated thereof.
AREAS OF CONSIDERATION

IE EE Strength Weakness Opportunity Threat

1. Company-sponsored training classes and
courses at local trade school
2. Specialty engines used in arctic oil
exploration
3. Production and maintenance of specialty
engines used in drilling, heavy
manufacturing, and diesel transportation
4. Rapid growth in sales volume, number of
products produced, and size of
workforce
5. 1, 700 employees
6. Laying off and avoidance of hiring new
personnel
7. Hiring temporary employees through
local temporary help services
8. Comprehensive Employee Assistance
Program
9. Problematic work performance of Tom
Kinder
10. New engine being built to a newly
constructed plant building
Legend:
*IE-Internal Environment *EE-External Environment
ALTERNATIVE COURSE OF ACTION
ACA I: THE MANAGEMENT OF AERO ENGINE CAN, IN GOOD FAITH, IMPOSE
PREVENTIVE SUSPENSION TO MR. TOM KINDER FOR 30 DAYS OR EQUIVALENT
TO ONE MONTH
As defined in the Labor Code, preventive suspension is justified where the employee’s
continued employment poses a serious and imminent threat to the life or property of the employer
or of his co-workers. Without this kind of threat, preventive suspension is not proper. The
Maximum period of suspension is 30 days. Beyond that the employee becomes entitled to his pay
and benefits and the employer may be required to pay indemnity.
Preventive suspension is incident to investigation. It is not itself the penalty for the offense,
although it may be considered as such after the offense is proven and the appropriate penalty
determined.
ADVANTAGES:
A. It can help Mr. Kinder to reflect on the repercussions of his actions.
B. This can help the management of aero engines to prevent possible threats in
daily operations of their company
C. It can open an opportunity for Mr. Kinder to re-collect himself if his action is
proven as an offense and will be granted with preventive suspension.
DISADVANTAGES:
A. There will be no assurance that this will help Mr. Kinder to improve himself.
B. It will be hard for the management to look for a skilled and well-experienced
employee who will serve as a reliever for the temporarily vacated post.

ACA II: ESTABLISHMENT OF A PEACE AND GRIEVANCE MACHINERY WHO

WILL HANDLE AND CONDUCT FURTHER INVESTIGATION WITH CASES SUCH
AS STATED THEREOF
The management of Aero Engine Company should create and establish an internal peace
and grievance machinery who will handle cases that cannot be resolved between the
supervisor/manager and employee. They will also be the one who will conduct investigation and
procedures to avoid further damage, which by in any case, would elevate to arbitration. The peace
and grievance machinery should be composed of the following: a.) Director for Human Resource
Development; b.) Line Managers/Supervisor; c.) qualified board member or officer of the
organization; d.) company lawyer (if there’s any).
ADVANTAGES:
A. Will be of great help to the management to handle cases and impose necessary
actions for the offense committed by any member of the organization.
B. Will give enough confidence to the management to present themselves, if in any
case, the offender will elevate the case for arbitration.
DISADVANTAGES:
A. If non-existence of the said organizational body, the management will revise their
Employee Handbook to propose and establish peace and grievance machinery.
ACA III: THE MANAGEMENT CAN AT LEAST REQUIRE HIM TO USE THE
COMPREHENSIVE EMPLOYEE ASSISTANCE PROGRAM OR IF NOT, HE CAN BE
CONFERRED ABOUT “FORCE RESIGNATION”
Since Aero Engine had a comprehensive employee assistance support, regardless of its
terms and conditions, they should have conferred with Mr. Kinder to make use of its advantage for
himself and for the organization where he belongs. If in any case, Mr. Kinder will not improve his
performance despite of the intervention and there’s a resistance to change in his actions, the
management can offer him to resign from his job so as not to affect his image as an employee
whenever he wishes to be employed again to another company.
ADVANTAGES:
A. If Mr. Kinder, choose to be freed from his employment, the management will be
relieved from any legal actions or damages.
B. It is a win-win situation for both parties: Mr. Kinder can still secure a proper job
whenever he wishes to be employed again; and the management can save their time
and effort in conducting legal proceedings.
DISADVANTAGES:
A. Uncertainties to the response and acceptance of Mr. Tom Kinder.
ACA IV: MANAGEMENT OF AERO ENGINE COMPANY MUST OBSERVE AND
FOLLOW DUE PROCESS
Even if the management of Aero Engine Company is very commendable by their proactive
and humanitarian approach to Mr. Kinder towards his actions for 5 years, this will be used against
them as they did not impose disciplinary actions to correct the depressed attitude of Mr. Kinder to
his work. In good faith, they gave Mr. Kinder lots of chances to correct his actions. Until such time
that they can no longer stand to his wok attitude which resulted to sudden termination of his
employment. The management should:
a. Let Mr. Kinder and Mr. Thompson conferred to each other pertaining to the incident
happened on June 07, 2008;
b. If the conference didn’t meet any satisfaction, Mr. Thompson can file an Incident
Report;
c. Factual proceedings which includes fact finding and hearing to be conducted by the
internal peace and grievance machinery;
d. A written notice should have been given to Mr. Kinder giving him the chance to be
heard and the “benefit of the doubt”;
e. Decision of the company whether to dismissed or not. The employer is required to give
the employee a written notice before terminating his employment: a.) a notice which
apprises the employee of the particular acts or omissions for which his dismissal is
sought; and b.) the subsequent notice which informs the employee of the employer’s
decision to dismiss him.
 ADVANTAGES:
A. Legal implications can be prevented if Mr. Kinder decided to exercise his
right to seek for help and submit himself for arbitration.
B. Further damage can be prevented in the daily operations of the company
DISADVANTAGES:
A. Emotional and psychological exhaustion

DECISION MATRIX

CRITERIA ACA I ACA II ACA III ACA IV

1. Control Good Best Good Best
2. Risk Good Best Good Best
3. Facilitation Good Best Good Best

RECOMMENDATION

Our group therefore suggests that, the management of Aero Engine should establish an internal
peace and grievance machinery to facilitate delicate cases such as the stated above. This peace and
grievance machinery will help the company to intervene in resolving the case (if it cannot be resolved
between the line managers/supervisors and employees) to avoid any legal implications in the future. It is
also recommended that the management should impose an immediate disciplinary action if the offense
resulted to such even if it is their prerogative to impose or not imposed any disciplinary actions. The
management should be mindful of what is written in their employee handbook/ administrative manual to
resolve cases in an effective manner particularly when it comes to welfare and conditions of employment
and so as not to forget that every individual has the right to due process.
 ACTION PLAN

Activities Person Time Budget SWOT Analysis

Assigned
Strength Weakness Opportuniti Threat
es

1. Establishing a a.) Director for 1 month Not Will serve as - Will know Inaccurate
peace and Human Applicable the internal how to keep findings and
grievance Resource arbitrator to up in the assumptions
machinery Development; resolve the competition
case with
b.) Line factual
Managers/Sup proceedings,
ervisor; fact
findings/inve
c.) qualified stigation
board member
or officer of
the
organization;

d.) company
lawyer (if
there’s any)

2. Observing due a.) Members 1 month Not Will prevent Emotional Improvemen Incompeten
process for of the Applicable legal and t of ce
termination of peace and implications Psychologic management
employment grievance in the future al system
machinery Exhaustion