1. Engineer Oscar Pascua was promoted to head the Buenavista Electric Cooperative after a successful career at the National Electrification Administration. However, upon taking over in 1996 he found many problems plaguing the cooperative.
2. When he met with key officers, they informed him that electricity prices were high, system losses were at 25%, supplies faced long delays, and some employees did not regularly report to work.
3. Despite recommendations approved by the board that addressed these issues, including salary increases and hiring more staff, a follow-up evaluation found that prices still could not be reduced, losses increased, delays persisted, and uncollected accounts grew. Pascua realized the initiatives did not improve services
1. Engineer Oscar Pascua was promoted to head the Buenavista Electric Cooperative after a successful career at the National Electrification Administration. However, upon taking over in 1996 he found many problems plaguing the cooperative.
2. When he met with key officers, they informed him that electricity prices were high, system losses were at 25%, supplies faced long delays, and some employees did not regularly report to work.
3. Despite recommendations approved by the board that addressed these issues, including salary increases and hiring more staff, a follow-up evaluation found that prices still could not be reduced, losses increased, delays persisted, and uncollected accounts grew. Pascua realized the initiatives did not improve services
1. Engineer Oscar Pascua was promoted to head the Buenavista Electric Cooperative after a successful career at the National Electrification Administration. However, upon taking over in 1996 he found many problems plaguing the cooperative.
2. When he met with key officers, they informed him that electricity prices were high, system losses were at 25%, supplies faced long delays, and some employees did not regularly report to work.
3. Despite recommendations approved by the board that addressed these issues, including salary increases and hiring more staff, a follow-up evaluation found that prices still could not be reduced, losses increased, delays persisted, and uncollected accounts grew. Pascua realized the initiatives did not improve services
Case 8. BUENAVISTA ELECTRIC COOPERATIVE, INC.,: Mas- 1.
the dismissal from the service of employees not
querade regularly reporting for work; Right after Engineer Oscar Pascua finished his elec - 2.salary increases of up to 20 percent for every trical engineering course at FEAT! University in 1985, employee on the payroll; he was hired as an employee of the National Electrifica- tion Administration (NEA). He was assigned to handle 3. the hiring of eight additional employees; and jobs in the various units of NEA until his promotion to 4.the formation of a team to investigate and recommend Chief Planning Officer in 1994. His main function was measures to minimize "system loss". to supervise the planning activities of his unit. Three engineers and two other employees reported directly to All his recommendations were approved by the him. His performance was rated very satisfactory. board, after which Engineer Pascua signed all the neces- sary memoranda to implement his programs. He made Engineer Pascua attended training sessions of var - regular inspections of the activities of the various units ious kinds including those for management. He finished of the cooperative. his M.B.A. course in 1995. During the first week of March 1997, he convened When the position of general manager of the Bue - the key officers for an evaluation of the past year's act - navista Electric Cooperative, Inc. (BECI) became vacant ivities. The following points were made clear to him: in January 1996, he was nominated by NEA. He got the post in March 1996. Aware of the many problems beset- 1.No reduction in the price of electricity could be ting the cooperative, he immediately went to work. extended to BECI's customers because no reduction in the overall cost of doing business was achieved. When Engineer Pascua called the key officers of the cooperative to a meeting, he was appraised of the following: 2.Instead of reducing the 25 percent system loss, it even went up to 26 percent. 1.that the price of electricity charged to BECI's customers is the fifth highest in the country; 3.There was no improvement in the requisition of supplies and materials. Delays still reach three 2.that 25 percent of the electricity service provided by months. BECI is lost every month and cannot be accounted for; 4.There is a new set of employees who do not report regularly for work. 3.requisitions for supplies and materials are served after delays of as long as three months; 5.The amount of uncollected accounts increased from P3.8 million to P4.2 million. 4.some employees of the cooperative do not report regularly for work; Engineer Pascua concluded that in spite of the granting of salary increases requested by the rank and 5.the increasing amount of uncollected accounts. f i l e, no subsequent i m pr ovem ent i n ser vi ces was Three days after the meeting, he recommended to registered. He is now considering more drastic measures the board of directors the following: 176 174