OBJECTIVES OF THE STUDY

 To identify the various problems/concerns in the organization under study

 To conduct survey among the employees to gather sufficient and relevant data to
validate the concerns identified
 To analyze and evaluate the possible causes and effects of these
concerns/problems to the organization
 To assess the effectiveness of management in the company
 To provide attainable solutions/recommendations to address the issues as an
application of the principles learned in the course

BRIEF COMPANY PROFILE

The firm commenced its commercial operations on 2007. The firm is formerly known as
Mateo Pulido Ramos and Co., CPAs. In mid – 2010, the firm’s name was changed to
Mateo Ramos Celestino Llona and Co., CPAs named after the founding partners. The
firm is located at Cityland 10 Tower II, 154 H. V. dela Costa Street corner Valero Street,
Salcedo Village, Makati City. Recently, the principal address of the firm is at Unit 201
Reliance St., cor. EDSA, Mandaluyong City. The firm offers a wide range of services to
individuals and business clients. It provides audit services (external and internal as well
as other relevant audits), accounting services such as Bookkeeping, Payroll services
and Financial Statements preparation and business and tax consulting services.
Recently, as part of its plan for expansion, the firm is hiring more employees to attend to
its increasing number of clients. A partnership profile is obtained. (See Appendix A)

COMPANY STRUCTURE

The company is composed of four (4) partners, one (1) senior associate, one (1) payroll
supervisor, one (1) semi-senior auditor, eleven (12) junior auditors, one (1) bookkeeper,
one (1) accounting assistant, one (1) payroll assistant and one (1) liaison officer. The
company is still small yet competitive and growing. Thus, employees particularly the
auditors perform multi-tasking activities. The admin department actually is composed of
the liaison officer and one junior auditor processing all the documents and transactions
of the firm with the guidance and supervision of the managing partner. Three (3) out of
the four partners are actively participating in the governance of the firm. (See Appendix
B)

On the other hand, the payroll department is generally tasked on the payroll processing
(i.e. computation of salaries, benefits, etc.). They are in-charge in the administration of
all payroll concerns. Conversely, the admin department performs all technical, financial,
recruitment and all of the firm’s transactions. Lastly, the audit department plays the role
in which the firm is established. It is the revenue-generating department of the firm. It
delivers the various services of the firm.

VISION/MISSION/CORPORATE VALUES (Proposed)

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The company is envisioned to be a globally recognized auditing firm. Its mission is to
deliver objective and quality results with character and competence.

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ANALYSIS OF THE PROBLEMS/CONCERNS/ISSUES
Ethical Behavior Issues towards Time
The company has a time schedule or working schedule of 8AM – 6PM from Monday to
Thursday and 8AM – 5PM during Fridays. Employees are allowed to take the overtime
with the approval of their superiors or their respective audit supervisor. Overtimes are
usually permitted during the audit season, that is, December to Mid-May of the year.

The company belongs to the Small and Medium-sized enterprises (SMEs). Thus, many
problems arise in terms of its internal control policy. Since the company only employs
the Biometrics log in and log out in the computer system, the tendency is that
employees can enter other employees ID number into the system even though the said
employee is late. Also, since the time of the Biometrics system is dependent to the time
of the computer, it is adjustable. There is weak control on this matter.

Another problem is that since the company is not that large/big, employees tend to
procrastinate by accessing the Internet, utilizing the company’s resources (i.e. time) into
their personal matters (i.e. downloading and uploading movies, etc., using yahoo
messenger/meebo to chat with their friends, not on business purpose and many others)
during business hours. The administrator already blocked the usage of facebook,
jobstreet and other sites except the yahoo.com website because it is used to
communicate with clients. The blocked sites are opened only during lunch breaks.

Another observation is that during fieldworks. Frequently, some employees tend to

perform their fieldworks (i.e. going to client’s office, do some audit procedures) late sans
company’s permission. Time conspiracy is rampant during fieldworks. Also, some
employees utilize half an hour on the work schedule during 8AM – 9AM to eat their
breakfast. Some also utilize the time to converse unnecessary issues during business
hours while the partners are out of the office (it’s just “When the cats are away, the mice
will play.”).

Just recently, a logbook is maintained for daily time in and out as well as for subsequent
fieldwork to tighten security on the issue of time management and to ascertain the
validity of the fieldwork, immediate supervisors need to sign on that logbook.

Employee Compensation and Reward systems

The company just commenced its operations on 2007 as previously mentioned above.
Since the firm is still flourishing, reasonable compensation is given to the employees
below their expectations. There is seldom salary increase or adjustment yearly. Since
the firm is an auditing firm, expect that the compensation is not that very high especially
for novices but there is a vast opportunity to gain understanding of the business industry
and meaningful experiences. Due to the size also of the firm, the employees are only
given twelve (12) days each for sick and vacation leaves upon regularization. Vacation
leaves must be fully utilized during the months of May to November otherwise it is
forfeited. There is a very tight control over allowances especially for transportation and
meal. Such policies and procedures in this regard are vague. Promotions are rarely
made to employees although performance appraisals are applauded. Job satisfaction of
the employees, organizational commitment and job involvement are diminished.

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Issues such as frugality, curb of expenses are highly practiced. This can be seen on
property and equipment used. Employees are rarely sent for trainings and seminars.
Team building is not often conducted. Based from the observation and inquiry, team
building has not been yet a practice of the company although updates and new sets of
ideas (i.e. dealing with the current issues and trends in the dynamic business) on
business matters and other related topics are provided and taught to the employees.

Despite those circumstances, the firm is very generous in terms of celebrating birthdays,
Christmas, death of loved ones, weddings and other food trips and gatherings. The
partners/owners are considerate on other critical situations such as conflict of schedules
between personal and business schedules.

Employer – Employee Relationship

The employers are very jolly in the workplace. They inspire and somewhat motivate
employees sometimes. If we were to rate the relationship between employee and
employer, ten (10) as the highest, it would be seven (7).

But some circumstances/problems/conflicts arise. One issue that creates gaps

sometimes with the relationship between them would be
grievances/complaints/criticisms which are kept only inside them, employees. These,
sometimes, affect their performance in the workplace. Most of them at times tend to feel
indifferent in the way they attack situational problems concerning client’s problems. They
provoke some superfluous actions towards the job. Some results of this gap are
evidenced by procrastination, delays in meeting reports and tend to feel insecure and
the like.

Due to unclear company policies and procedures, employees’ works lead to poor
analysis of situations, weak decision making and there would be high probability of
errors and mistakes. Another causes of poor employee – employer relationship are due
to the, perhaps, low compensation and unattended justifiable concerns of the
employees. These causes, if not addressed forthwith by the firm, will gradually ruin
relationships with the employees as well as external parties in the years to come. These
would create a smear on the company’s reputation, market share, and have a great
impact on its financial performance and position.

Another predicament is that there is very poor recognition in terms of the achievements
(and achievement orientation) and vague group norms. Thus, sometimes they become
unmotivated to fulfill or accomplish their tasks resulting to reduced employee
performance.

Auditing firms provide career growth, development and advancement (wide variety of
experiences in various areas of business such as auditing, accounting, consultancy and
banking/finance). Another concern that affects relationship between employer and
employee is the job-ability fit. Some of the employees are given a job which is not suited
with their chosen field of expertise or career. For example, the usual objective why CPAs
enter auditing firms is to experience auditing not just merely providing accounting
services such as bookkeeping. Some of our employees are deployed into some of the
firm’s clients simply to perform or render bookkeeping services which is against the
objective of that employee in entering the firm (i.e. audit). Due to this fact, some of them

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resign and find another job sacrificing the career growth and development that should
be gained by them through the course of the work.

Employee – Employee Relationship

 Feeble camaraderie among employees
Relationships are very vital in the workplace. They sometimes obliterate
friendships, personal character with co-employees, customers, suppliers and
other stakeholders. In the company, especially on what we offer to the public, that
is, truthfulness, fair presentation of financial statements, relationships play a
significant role and it must be dealt well among us and towards other people. In
our company, some of the employees have personality problems such as
insecurity, biases, envy, shifting job loads to another, disrespectful sometimes,
pride and selfishness. They convey bad rumors about others. Hence, these
problems influence their comradeship with one another. Teamwork is seriously
affected.

 Organizational politics
Organizational politics are very prevalent inside the company. Sometimes, these
remain an issue every time there is something to be performed favorable to the
other or there is an on-going project to be accomplished. These concerns/issues
are silent yet it can be seen obviously on how employees deal towards their co-
employees. This sometimes leads to some employees to stereotype others.
Some employees also due to the desire or need for power tend to prove perilous
to the organizational goals and objectives. They influence others negatively.

 Lack of Individual Responsibility

Another issue that affects the employee – employee relationship is that there is a
lack of sense of individual responsibility. Some of them lack initiative to perform
the tasks assigned to them. They do not know how to prioritize or determine what
are urgent and important, important but not urgent, urgent but insignificant and
both not urgent and insignificant. I can say that some of these issues are brought
about by some of the abovementioned issues in the company.

Other internal concerns and issues

 Poor Communication
Communication becomes a problem when employees have attitude problems.
These attitude problems create a barrier in an effective communication. In the
company, some employees find it hard to communicate to other co-employees
due to these attitude problems such as pride and insecurity, thus affecting the
nature of the work to be acted upon especially if responses/reports are highly
required to be delivered. Communication is also affected by the body language
and gestures showed, unmanaged anger and anxiety towards each other such as
frowns which would signify disagreement or ambiguity. Poor communication
would result to hard negotiations and conflicts.

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  Division of Labor
The organization belongs to a small and medium-sized enterprise. There are a
handful of people performing more than one task. Presence of multi-tasking is
obviously seen in the office. The worst is that it is hard to complain to the
management. Some employees lack confidence to speak with the partners. Also
due to this, the delegation of responsibility is hazy. Some of the employees are
confused to whom they deliver their reports. This is caused most probably by the
size and design of the organization.

Because of unclear delegation of responsibilities, sometimes employees are

stacked up with so many pending (i.e. reports). Reports are delivered untimely or
delivered with so many corrections. Since the organization comprises multi-
tasking jobs, undefined authority is apparent. Thus, sometimes employees are
dependent on their supervisors.

 Organizational Culture
Organizational culture inside the company is somewhat undefined. Most of the
policies and procedures, rules and regulations are implied. There is no actual
formalization of rules and procedures, no handbook where anyone can read
company policies and procedures, sanctions. Most of them are verbal. People
and team orientation are rarely defined. There is an absence of proper dress
codes as long as employees wear professional attires during Monday to
Thursday (Friday is a free dress day). Tolerance of fun is least managed.

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RECOMMENDATIONS

Ethical Behavior Issues towards Time

One attainable solution that I may recommend is that the company should employ
tighter control on time by means of acquisition of affordable finger scan machine. The
firm should analyze the cost-benefit of this undertaking. This finger scan machine should
be directly connected to the payroll system to monitor the time attendance of the
employees. For employees who are immediately going to the clients or performing
fieldworks, they should inform the administrator one day before the official business. In
the firm, currently employees having fieldworks are just filling up the ‘No log in and out
form’ which is good but the problem is that they are not being monitored by the
administrator if they are really there during those hours. The form then just signed by
their corresponding supervisor. Those circumstances should be avoided if the firm would
provide the employees ‘an official business form’. This form should be signed by the
immediate supervisor before the start of the fieldwork and signed by the client’s duly
authorized signatories from time to time when that employee conducts his/her fieldwork.
This would facilitate proper control over time for the firm.

The firm should closely monitor procrastination among its employees. To control this, the
firm could install CCTV to watch those actions. It (firm) should strictly implement rules
and regulations on the utilization of web sites such as YouTube and other superfluous
sites for the business. These rules and regulations must be clearly defined in the
policies, systems and procedures of the firm. There should be constant practice of
information dissemination to keep employees well – informed so that employees have
no reason for excuses.

One solution that I perceive would be the hiring of additional manpower in the Human
Resources Department. Currently, the firm has only one personnel dealing all the
matters in administration and human resources. Additions, amendments or removal of
certain policies, systems and procedures must be announced timely and orderly.
Comments, suggestions or concerns of the employees (in short, employee involvement)
should be valued and taken into consideration. Any considerable ideas should be
inculcated in the policies, systems and procedures for the amelioration of the company’s
operations, thus, increase employees’ performance, commitment (dedication) to the
achievement of the company’s objectives.

Employee compensation and reward systems

The firm right now is still expanding its business. To avoid high employee turnover, the
employees should be compensated and rewarded well according to their performance
by means of providing them additional benefits such as trainings, seminars to enhance
skills or give them updates on their field of expertise. The firm should develop more on
their activities on career growth and development. Those additional benefits may be in
the form of annual increase in their basic salary.

Transportation, meal and other allowances such as uniform should be increased but
within the boundaries or limitations of the company’s resources. Defined policies on this
regard should be made.

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The firm should also provide convenient yet affordable property and equipment (i.e.
laptops, office supplies, furniture and fixtures, etc.) to facilitate rapid and easy way of
performing their tasks assigned.

Employer – Employee Relationship

One concern raised anent to the employer – employee relationship is the unheard
grievances/complaints/criticisms. This concern can be resolved through proper
communication to the employers. The employers should listen carefully to these relevant
issues raised by the employees. And if such issues should be acted upon, then, they
should immediately resolve, make urgent, attainable and sound solutions to address
these issues.

One suggestion that may improve employee performance is to constantly motivate them
such as simple recognition for a job well done. The company should provide recognition
when deserved and this must be genuine and meaningful. This would boost their morale
to continuously perform better in all areas of endeavors. This kind of motivation would
diminish turnovers in the long run.

Another recommendation would be acceptance of individual’s differences in

personalities, abilities and learning styles. The company should match employees with
the job requirements in order to avoid tumult once the job assignment commences. The
firm should understand and value its employees’ abilities and learning styles and make
some necessary adjustments. It should focus on developing good attitudes or altering
bad attitudes into more desirable attitudes for the organization through team building
sessions, sending on seminars and trainings, providing pieces of advice for
improvement, and use of negative reinforcement. The employers should also uphold
positive attitudes in times of difficulty in order to be more successful in any undertakings
the firm opts to achieve. Likewise, the employees should act positively. They should
also consider the size of the organization and try to make essential adjustments to cope
with the nature of the business the firm has.

It is highly recommended that immediately after hiring an employee, company policies,

systems and procedures as well as job duties and responsibilities are already clear and
well-understood by him or her. All basic information that an employee should know
before entering the company should have been disseminated orderly and properly to
avoid confusion on the role and job to be accomplished. Hence, employees should be
well-taken cared of.

Employee – employee relationship

Conflict among employees is very common in all organizations. This is brought about by
internal and external factors such as stress on the job, work conditions and environment
and many others. To avoid conflicts, employees should also comprehend other’s
differences in personalities, abilities and learning styles. Thus, conflicts should be
resolve in a win-win situation. They should adjust, if possible. They should not belittle
each other’s weaknesses but rather help one another to realize the company’s goals
and objectives as well as their own objectives in life. Proper observance of professional
behavior among them should be imbued in their minds. They should be sensitive to
other’s feelings and behavior to shun misunderstandings and quarrel. Rumors should be

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avoided by the employees and disregard them if they are not really important or act on
them professionally. Learn to apologize sincerely when resolving conflicts.

Another recommendation is to strengthen camaraderie among employees through

meaningful team building workshops or activities. Attitude problems could be lessen or
eliminate totally if one knows how to express regrets, accept mistakes and learn from
them. On the other hand, organizational politics is also an issue. Possible
recommendation is to evade engaging in such activity. Self-discipline and control would
be recommended also. Positive mentality / perspective would be most probably an
acceptable recommendation.

The company should instill individual responsibility among its employees. There should
be clear delegation of responsibility to proper subordinates competently. Clear job
description and specification should be understandable inside the organization to
determine the extent of responsibilities and its nature as well as the requirements
needed.

The company should have defined policies, systems and procedures. Employers should
constantly update the company to cope up and meet the needs of their employees as
the work environment changes. It should foster family-friendly workplace for the firm to
remain competitive in the future. This would make it easier to retain employees and
workers.

The company should spend time also assessing its organizational structure such as
addressing issues concerning dress code, décor of the offices, language of the job,
tolerance of fun, discipline and ethical standards. Careful evaluation should be
undertaken. Standards should be in place and strict compliance to these standards
should be highly observed.

Other recommendations
The company may also employ other programs to address the abovementioned
issues/concerns such as the following:

 Quality Circles
Employees should form a team to tackle some adversity in the job, discuss and
resolve conflicts and render additional inputs necessary to the job. This is also a
way to toughen camaraderie, build rapport among employees and help co-
employees understand some difficult situations that are being encountered during
the examinations of various companies’ financial statements, operations and
other business related matters.

 Variable Pay Programs

This program would entail giving rewards to better performance. This links the
salary and wages with the results achieved. This program would give additional
incentives such as commission to top performing employees. This will somehow
motivate employees to strive more or increase productivity.

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  Employee involvement
Employers should encourage full participation in the decision-making process to
cull the best ideas and to gain support from them. Opinions and notions of the
employees should be highly respected / appreciated.

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ASSESSMENT OF MANAGEMENT EFFECTIVENESS

INTRODUCTION

 Setting Goals and Standards

Normally, the company sets short-term goals/plans during the start of the audit
season (i.e. November or December). All accounts that we handled the previous
audit are reviewed by the partners and all of the auditors in one session. This
review focuses on the assessment on the performance of every auditor
responsible to each account. It also entails the preparation of audit plan and
objectives on how to efficiently and effectively perform the audit. Usually, the
managing partner sets the general goals and objectives for the company for the
next year of operations. All activities should be aligned to goals set. The goals
and objectives are revised if deemed necessary by the partners themselves as
the work progresses.

Basically, most of the standards in the company are implicit. Since the company
are an auditing firm, standards whether in the preparation of reports or exercise
of profession are the one stated in the Code of Ethics for Professional
Accountants in the Philippines approved by the Board of Directors of the duly
accredited professional organization, the Philippine Institute of Certified Public
Accountants (PICPA) recommended for adoption by the Board of Accountancy
(BOA) and approval of the Professional Regulation Commission (PRC) as part of
the rules and regulations of the BOA for the practice of the accountancy
profession. Other standards are implicit.

 Training, Coaching and Delegating

The company provides training to its employees. Selected employees are sent to
trainings and seminars outside the company. These employees will, in turn,
provide the other employees in the company insights and ideas. Internal trainings
are rarely provided but guidance on the performance of the audit as well as
constant supervision and monitoring of the activities is frequently given. The
partners and supervisors provide the auditors the general framework in which to
guide them and the auditors themselves design their own approach on how to
complete things efficiently. The management respects employees’ own
perspectives, ideas, opinions and suggestions as well as recommendations if
deemed significant to the success of the firm. Problems arise only on the
implementation of these recommendations. Some expectations of the employees
are not being met properly or on time due to whatever reasons. Delegation of
authority is sometimes ineffectively practiced.

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SURVEY RESULTS

The following results were obtained from the survey conducted among the twenty-two
(22) persons (i.e. 3 partners, 3 middle management & the rest are rank & file) working in
the company. Since the firm is small, all (100% examination) are asked. The survey is
conducted to assess management effectiveness in setting goals and standards as well
as in training, coaching and delegating to employees. Management is evaluated with the
following ratings:

Legend:
Fully Unsatisfied 1
Slightly Unsatisfied 2
Satisfied 3
Highly Satisfied 4
Fully Satisfied 5

Hereunder are the analyses and interpretations of the data gathered:

SETTING GOALS AND STANDARDS

1. Sets major personal goals once a year.

Survey revealed that 90.9 % of the employees are satisfied with management in
setting major goals annually. 9.1% of which said that they are unsatisfied.
Actually, the company sets achievable goals before the current year ends.
Normally, the goals are aimed for partners’ wealth maximization, the business
strategies and plans for the coming year which are intended for the success of
the company. The only concern I believe when it comes to setting goals is that
the goals and plans for the employees are not openly discussed during the
session. That is why there is dissatisfaction among employees. Such plans are
not conveyed explicitly but somehow the plans and goals are set with the
intention of giving rewards to the employees. Somehow the unsatisfied
employees have misconception on the criterion. Since the company is still

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 flourishing, it cannot provide yet as of now the expectations of the employees but
it gradually fulfills them.

2. Demonstrates that dreams can become reality only if there is a clear path to
achieve them.

Survey disclosed that 86.4% of the employees are satisfied with management’s
demonstration of a clear path in the realization of dreams. 13.6% of them told
that they are unsatisfied. Normally, accountants enter an auditing firm to gain
experience or broaden knowledge and perspective in the various business
industries. Honestly, auditing firms serve as training grounds for those CPAs.
The concern is ‘survival of the fittest’. Sometimes, auditors are guided only from
the start with the general framework of the process. Rarely, they are
continuously monitor and supervise the works of the auditors and tell them the
flaws they committed during the process. There is a clear path towards the
realization of the company’s goals but vague path on the employees’ rewards
and benefits. But I do believe that eventually dreams will be gradually achieved
since I see developments and changes in the company’s structure and
management is becoming more aware of the employees’ concerns in the growth
of the firm.

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 3. Converts loose intentions to hard and tangible goals.

Actually, the firm provides its employees with tangible rewards sometimes.
These rewards come during Christmas, special gatherings, etc. Rewards such
as increase in compensation are rarely provided. Increase in compensation
undergoes a rigorous process during the performance appraisal period.

4. Looks for innovative ways to generate people's enthusiasm about targets

and goals.

Results of the survey said that 95.5% are satisfied with management’s
perspective/actions in seeking innovative ways to create enthusiasm among
employees about targets and goals while 4.5% are unsatisfied. Actually, the firm
is always looking for innovative ways to enhance and generate enthusiasm
among employees in every action it undertakes. It frequently affirms any
innovative ways and new developments for the growth and success of the firm.
Sometimes, some employees probably expect more, that is why they are not
satisfied with the actions of the management. It somehow relates to some of the
attitude problems of the employees.

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 5. Sets standards and targets that are specific, action-oriented and realistic.

The graph showed a 95.5% satisfaction of employees towards management’s

setting of specific, action-oriented and realistic standards and targets while 4.5%
are not satisfied. As mentioned in the introduction of the assessment of
management effectiveness as well as in the first criterion, the firm actually lay
down specific, action-oriented and realistic standards and targets and everybody
should strictly abide on these things. It provides always timetable to guide the
efficient utilization of time as well as to assess the effective utilization of
manpower. These standards and targets serve as measure of the employees’
performance to deliver quality results. Somehow along the way, these standards
and targets are updated to conform to the demands of the clients and to meet the
expected results from the firm.

6. Does not allow vague and aimless aspirations to prevail.

The study showed that on the basis of such criterion, employees are 95.5%
satisfied while 4.5% are not. Normally, the partners themselves decide their

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 desired results because in the first place, they own the firm. So whatever the
unanimous decision they have, that is to be followed by all. Vague and aimless
aspirations are strictly not entertained in the firm. All aspirations should have
bases (i.e. laws, rules and regulations and/or industry practices).

7. Sets a closer and easier target if the team seems to be drifting.

The above graph depicted a 95.5% satisfaction and 4.5% dissatisfaction of

employees. During the courses of action or engagement, employees always
consult with their supervisors and with the partners as well as with co-auditors.
When the auditor-in-charge seems to be in the wrong track, the respective
supervisor, thus, advises the auditor to perform the engagement in such a
manner that is easily understood. If the problem is not solved within the middle
management that is the time the partner(s) intervene and make some comments
and suggestions or recommend some alternative solutions to solve it.

8. Clearly defines how to get from A to B.

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 The graph represented 86.4% satisfaction and 13.6% dissatisfaction on the
management effectiveness on clearly defining how to get from A to B. Honestly,
instructions and procedures are defined at the beginning of the process but these
are not clearly stated. Everybody is provided with generic orders. This,
sometimes, causes confusion along the way resulting to poorly done results
thereby affecting the performance (i.e. effectiveness & efficiency) as well as
morale of the employees.

9. Keeps checking to make sure that everyone is on the right track.

The graph clearly illustrated that employees are 81.8% satisfied and 18.2%
unsatisfied. This condition obviously is the second to the lowest categories on the
management effectiveness on the setting of goals and standards. Indeed, this is
true because as mentioned in the prior conditions, from the commencement of
any engagement the partners together with the supervisors merely provide the
general framework. Afterwards, it is up to the auditor himself to use his/her own
approaches on how to solve the case and be able to deliver quality results. The
only concern that I see is that no constant and close supervision and monitoring
by the partners and supervisors. It is true that they trust their employees but the
tendency is that some employees abuse this attitude of the partners that they
themselves cannot deliver anymore the desired quality results on time, thus,
causing delay, not meeting the client’s demand, increasing costs which may
eventually losing clients as well as diminishing the firm’s value.

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 10. Matches broad directional goals with steps that can be taken immediately.

The employees expressed 100% satisfaction on this condition. The firm is

administered actively by the partners so goals are regularly checked to assess
the direction of the firm, its status in the current industry, its position in the
market as compared with other auditing firms.

11. Stays focused and does not let people get side-tracked or thrown.

Based on the survey, 95.5% of the employees are contented while 4.5% of them
are unhappy on management effectiveness on being focused never let its people
get side-tracked or thrown. Truly, the management is focused in the
administration of its people. Occasionally, management checks the status of the
work of that employee and sometimes even his/her personal well being.

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 12. Can quickly get people to decide on one direction when there are
competing alternatives.

Based on the review conducted, apparently this has the lowest rating of
satisfaction among other conditions. The graph presented 22.7% dissatisfaction
which is the highest among the conditions. While the management trust
employees on other areas, but when it comes to decision-making employees’
suggestions and recommendations are rarely heard in the group. At the end of
the day, management’s decision still prevails. So sometimes employees merely
obey the decision and seldom object sacrificing better ideas that may help in the
development and growth of the business. Better and appropriate results are set
aside being unheard. There is very low confidence in contesting the ideas of
management.

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TRAINING, COACHING AND DELEGATING

1. Encourages people to look for new learning opportunities.

Employees expressed 86.4% contentment on this condition. Frequently, partners

embolden employees to excel or even exceed their performance and try to look
opportunities for every difficulty. The sole concern that I observe is the trainings
provided internally and trainings outside the firm. Probably, the reason why there
are trainings is that employees are very busy accomplishing their own tasks.
Learning opportunities are obviously seen on every engagement because each
has different approach as compared from the other. Absorption of those
opportunities depends on the employee’s attitude.

2. Avoids specifying exactly how something should be tackled or done.

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 Management received 90.9% positive comments for this criterion. Generally, as
previously mentioned in setting goals and standards, partners as well as
supervisors just discuss the general principles and procedures necessary
throughout the engagement. It is up to the team member on how to effectively
and efficiently complete it as long as he/she meets the desired results and it
should be in accordance with established standards and as stipulated in the
contract/engagement. In cases of problems along the way, the auditor-in-charge
should seek first consultation from the supervisor-in-charge especially for large
accounts.

3. Gently guides people without imposing his or her own views.

Under this condition, employees gave a 90.9% fulfillment. Employees are usually
guided especially for critical accounts and those accounts that necessitate
constant review and monitoring of updates and status. Cautious analysis and
guidance are always rendered to the employees. But sometimes management’s
views are imposed because of its immediate importance.

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 4. Looks for specific projects that can provide new challenges for people.

The graph depicted 90.9% happiness of employees towards this condition.

Almost all gave management a high satisfaction rating. Indeed, the partners are
always looking for specific projects that are suitable to the individual employee.
They assign the employee with the highest perceived potential in the area. They
cheer that employee to unleash its hidden skills and capabilities. Management
provides new challenges for its people to develop their competencies.

5. Does not feel threatened when they give their delegated authority to
others.

Typically, management delegates their authorities to the different supervisors for

the various areas. Delegation of authority is highly visible in the firm. The
partners solely rely on the expertise of the supervisors when it comes to
administration of the area assigned to them. What management do is that they

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 just supervise the assigned officer-in-charge rarely because management
believe that they can manage better in that particular area. The management just
asks some updates or feedbacks from them.

6. Supports people who make minor mistakes in trying something different.

Employees usually receive support from management in trying something

different. Management encourages everyone to be brave-hearted when it comes
to discovering new field of expertise as long as it favors all. The management
does not allow any undertakings if it seems detrimental to the firm. Possible
alternatives are discussed in this regard.

7. Avoids any kind of criticism or punishment when people try their best.

Normally, management applauses employees in trying their best when they fall
short the first time. Some employees do not learn from their mistakes, thus,
repeat the same again. Eventually, meetings after meetings happened among

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 the partners to solve the issue. They sometimes transfer the employee to
another account or handle still the account but with strict monitoring. This
circumstance puts a great negative impact on the individual’s performance
during the decision of management to increase additional basic salary and
benefits. As observed, management is very patient for those, let’s just say, slow
learners.

8. Invites people to take as much responsibility as they think they can handle.

This condition always happens in the firm. Management puts too many
responsibilities to those they perceived he/she can handle such. Since the firm
has increasing number of clients, so what partners do is that they dump such
accounts to one individual and it is up to him/her on how to approach such
situation. That depends already on the strategy on that employee on how to
lessen his/her burden. The only concern I think here is that management
sometimes does not listen to the voice of its employees. Sometimes some of the
employees only murmur and cannot do anything but to accept the accounts.

9. Avoids "jumping in" too quickly even when people make mistakes.

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 This condition reflected one of the lowest ratings of management effectiveness in
terms of the training, coaching and delegating category. Employees are only
86.4% satisfied with the way management handles such scenario. Sometimes
this happens due to repeated mistakes committed by a member in a team to
his/her supervisor. Sometimes, some employees are stubborn; they are not
observing strictly the standards thereby resulting to some unprofessional act
causing conflicts among the team.

10. Offers broad direction on a task and lets people design their own
approach.

Honestly, management offers broad direction on a task and lets people design
their own approach but on selected areas only. Management at times does not
let people design their own approaches due to the issues mentioned on the
previous paragraphs such as attitude problems and time management. Partners
impose firmly their own approaches to have uniformity in presentation. I do
believe that there is no question when management offers its broad direction on
a task. They execute this action frequently.

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 11. Asks people to make suggestions to generate ideas of their own.

In fact, management asks only its supervisors to make suggestions to generate

ideas of their own at the beginning of the engagement for those crucial and large
accounts. For those small and regular accounts as well as those directly
reported to the partners, the management solicits suggestions from its team
leader as well as from each team members. It is understandable that
management seeks only pieces of advice from the managerial level because
they have more experience than those below the line.

12. Rewards individuals when they push or stretch their own personal
boundaries or limitations.

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 This condition I believe is the weakest link of the firm. Management does rarely
provide its employees rewards for pushing or stretching their own personal
boundaries or limitations. There are rewards in terms of performance appraisal,
sweet appreciation from them but monetary rewards such increase in salaries,
benefits and allowances are seldom provided.

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RECOMMENDATIONS

The recommendations are provided on each area with the three conditions receiving
lowest ratings. Recommendations are intended to improve the area, to effectively
administer the firm and to assist the firm and employees themselves to achieve
objectives and goals established.

SETTING GOALS AND STANDARDS

1. Clearly defines how to get from A to B.

Management should provide defined and specific tasks to effectively perform the
engagement. Employees should also update their immediate supervisors from
time to time to monitor the progress of the engagement and ask for proper
assistance as needed. Timely feedbacks should be given to everyone so that
there is allowance for the employees to incorporate them into their reports. Strict
adherence to the timetable as well as to the pertinent standards and procedures
should be observed. Furthermore, management should also define the specific
guidelines. Also, management should also have a defined employee
manual/handbook on its own in order to have a written basis of sanctions and
other significant matters.

2. Keeps checking to make sure that everyone is on the right track.

It is highly recommended that management should constantly supervise its

employees whether on services rendered or on administrative functions, should
provide timely feedback and should make the necessary corrective actions
immediately to shun future setbacks and/or problems. The recommendation for
this condition is also related to the paragraph above. Indeed, there is a need for
the firm to create its own employee handbook to guide also the performance of
the entire organization and to have a firm position in the market.

3. Can quickly get people to decide on one direction when there are
competing alternatives.

Management especially those at the top should listen to the voice of its people.
“Vox populi, Vox dei.” There might be better ideas down the line that could help
the firm conducts its business. It should seek also recommendations from the
rank and file and assess such suggestions to sort out those that are really useful.
Partners should find time to listen carefully to the ideas of its employees.

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TRAINING, COACHING AND DELEGATING

1. Avoids "jumping in" too quickly even when people make mistakes.

Occasionally, employees do commit mistakes. Due to employees’ attitude

problems as mentioned in the previous paragraphs, management intervenes too
quickly especially on the critical areas involving fraudulent/mischievous acts. So,
it is recommended that management should first listen the sides of both parties
to have a better overview of the scenario. Afterwards, it should provide attainable
solutions to the problems. Then subsequently implement the solutions and
evaluate it through asking feedbacks from the employees.

2. Offers broad direction on a task and lets people design their own
approach.

Careful attention should be given when management lets its people design their
own approaches. What is happening right now inside the firm is that partners rely
on the approaches of some employees which are not actually suitable for the
situation. So, management should establish its general guidelines/framework in
which the specific guidelines are to be based so that there is a source of
accurate evaluation.

3. Rewards individuals when they push or stretch their own personal

boundaries or limitations.

This is one of the weaknesses of the employees, giving just and reasonable
rewards to individuals. Management should employ the variable pay program as
mentioned in the previous paragraph. This program would give additional
incentives such as commission to top performing employees. This will somehow
motivate employees to strive more or increase productivity. This giving of reward
should be done annually and this should be clearly mentioned to all employees
and stated in an employee handbook as necessary. Another recommendation as
an alternative would be to increase allowances and benefits given to deserving
employees in order also to encourage others to struggle to achieve more. These
rewards may boost the morale of each employee.

Finally, the firm should take corrective actions on these issues to thwart future problems
since the organization is getting bigger and bigger. Cost should not exceed the benefits
in implementing those recommendations. Furthermore, employees’ comments should be
taken into consideration, too.

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CONCLUSION

Overall, the study showed 45.3% satisfied, 32.4% highly satisfied and 12.9% fully
satisfied. On the other hand, only 3.2% of the employees said they are slightly
unsatisfied and 6.3% fully unsatisfied. In total, the survey resulted to a 90.5%
satisfaction. Hereunder is the graph of the survey conducted to assess management
effectiveness:

The graph shown below illustrates the percentages of satisfaction of employees in terms
of management effectiveness in setting goals and standards for the firm as well as in the
area of training, coaching and delegating.

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Nowadays, issues/concerns concerning human behavior in organization are very
ubiquitous. We read from newspapers and listen on the radio issues such as graft and
corruption, bribery, harassment and other anomalies not only in the government but in
most of the companies as well. In the business world now, mergers, acquisitions and
diversification are very common. As companies grow and expand, they also face many
different problems. One problem is human resource management.

Through a profound understanding of one’s behaviors in the organization, we can

resolve these concerns peacefully with a positive mental attitude and with a right
perspective. Truly, these concerns, if not immediately resolved, could affect the daily
business transactions obliterating our relationships, creating conflicts, poor decision
making and would eventually ruin the organization as a whole. The members (i.e.
employees, workers, etc.) of the organization should cooperate, coordinate and
participate professionally and properly towards the realization of the company’s goals
and objectives.

Indeed, employees are very significant in an organization. They may be assets or

liabilities depending on the factors that affect them. Proper treatment to employees
should be given and evaluated. Companies should determine that costs will not exceed
the benefits derived. Hence, companies should value their employees well and
employees must value their employers, too. With this, the goals and objectives set by
the organization as well as career growth and development among employees will be
realized.

Through this study, I learned that employees play various critical roles in an
organization. Even though how small or large an organization is, there are always
problems/concerns/issues. And these issues/concerns, if not cured, will eventually
destroy that organization. Through carefully analyzing and understanding their
behaviors, we may thwart the possible problems that may be encountered in the future.
By this study also, we may provide preventive measures or attainable solutions to these
concerns/issues that affect the organization.

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Finally, the study is very relevant for the students in order for them to critically examine
and apply the principles thought in the course. It broadens the minds of the students.
This is really very helpful not only to the students but also for the organization studied in
order for them to know or identify critical areas for improvement and make the
immediate action steps towards these issues/concerns noted.

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