CASE STUDY: MYSTERIOUS TERMINATION

There are the analysis in the case that the management of Multi Global Finance and
Insurance Corporation do some termination. It is the role of the top management and
the corporate strategy to revive the company and to become as one of the Top 100
companies to work in the Philippines.
The top management, especially Chief Executive Officer or the CEO played a crucial
role in termination. The CEO acted informally and formally as a decision maker to
implement the companies new strategy. The cases clearly demonstrated the need for
strong leadership to encourage and support termination process and the CEOs role in
representing the corporates view in the Philippines.
Firing your top management make your company at risk because the top management
is your elite team in your company. They operate the company and manage all the job
regarding to your company, if you fire them your company become less productive and
no one will serve as a leader in your lower management.
In every case, the CEO, the chairman of the board and the president played a crucial
role and constructive role in the termination process. The CEOs initiated the
investigation of strategic options, established the review process, provided incentives
for considering terminations, supported and sometimes orchestrated the effort to
evaluate termination options, and made final decisions. The CEOs did not necessarily
participate in the day-to-day termination process, but they made known their interest.
The CEO typically consolidated support for the new policy and increased his control
over the corporation. In this case, the CEO spent the major part of his time signaling his
intentions and encouraging potential supporters of changes. They reorganized and
replaced personnel so as to consolidate his control and to weaken resistance change.
The benefits of termination can be a substantial. It allows a firm to concentrate its
available resources on recovering from unfavorable developments or to grow in a
promising new direction.
Finally in this case, the cost of termination includes some financial loss due to struggle
in typhoon. It is the strategy of MGFIC Company to set at the highest level of an
organization to its future course. Whatever the reason for initiating the aim of
termination it is to improve the future of the company. Termination contributed to future
prospects by providing funds for increased investments in such areas.
QUESTIONS:
1. Who would most likely have intervened to terminate the senior team over issues
of conduct?
It would be the Board of Directors, since they are the one who is capable in
selecting and appointing those persons on the top management. The board of
directors, has very defined roles and responsibilities within the business
organization. Essentially it is the role of the board of directors to hire the CEO or
general manager of the business and assess the overall direction and strategy of
the business. Therefore, they are also one who is responsible for terminating.

2. Give some examples of the kind of ethical misconduct that could have led to the
termination of the entire senior leadership of MGFIC.
An example of ethical misconduct would be the collaboration or teamwork of
these three executives in practices such as falsifying financial reports or any
other reports, another possible misconduct is selling of stock when company is
performing poorly while still portraying great health to the public. In this case they
do not exercise transparency and they deceive the public especially the
shareholders regarding the current and true state of the company.

3. Was it a good idea to fire them all the same time with no detailed explanation?
For me its no, you would not fire them at the same time unless you have a
replacement. But if they have a replacement right after they fire those people and
it was proven that they really commit those unethical misconduct then, firing them
all at the same time will be okay and justified.
Every employee has the right to know why they got terminated and of course
those reasons should be just and fair. Lets say that there were enough reasons
to fire them, the Board of Directors of course can fire them right away, but at
least let them know the reasons behind their termination because it is their right,
for it to be fair and for them to understand and accept it.

4. How are the stakeholders of MGFIC likely to react to this news? Explain.

They will be shock, worried and will be curious about what really happened after
hearing the news, given those positive things about the company. If I am a
stakeholders I will become more worried about our company due to firing of our
top management, the company will not operate properly without the top
management and the stakeholders worried about their interest in company.