A Case Study: Organizational Culture of Ultimate Shield Security
De La Salle University Graduate School of Business A CASE STUDY: ORGANIZATIONAL CULTURE OF ULTIMATE SHIELD SECURITY In Partial Fulfillment of the Course Requirements in Organizational Behavior and Processes (HRM511M) Submitted to: Mr. Michael Joseph Submitted by: Arnigo, Ralph Choemm, Rotha Flor, Chino Partido, Karina Section: GRA October 29, 2012 Ultimate Shield Security Services, Incorporated Background
Ultimate Shield Security Agency, Incorporated is a security agency established by Domingo Partido, having served in the military as a Military attache during his teen years, he was then inspired to establish a security agency years later in the late 1980’s as he had a background in such things. In 1989, USASi – Ultimate Security and Allied Services, Inc. was born and it began its operations in the same year.
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Aside from the Metro Manila Head Office, Ultimate Shield was able to branch out into two other regions – one in La Union, covering the northern Luzon area and one branch in Surigao Del Norte, covering the lower region of the country. Having more than 300 security guards posted in Metro Manila as well as in other regions of the country, Ultimate Shield Security offers its services to different institutions, organizations, companies and establishments in and around the Greater Manila Area, as well as in provincial areas, who are in need of quality security services, based on values and morals that USSAi strongly adheres to.
With this, USSAi has been working with different companies, such as AMOSUP, Seamen’s Hospital, Max’s Fried Chicken branches, Via Mare Tomas Morato, GMA Network, Peninsula de Punta Fuego and Araneta Coliseum to name a few. Objectives and Values USSAi’s main objective is to provide and maintain an excellent and professional security service, founded on its basic corporate policies and guidelines. It is in USSAi’s intentions and actions to keep the client’s best interests at heart by providing the best security service possible through following of the rules and regulations of both the agency’s and the client’s.
With providing the best service, USSAi also encourages and mandates trainings both to the security personnel and the office staff to ensure that their skills and knowledge is updated and up to par with their peers (or even more) in other agencies and companies. It is also important to USSAi to uphold honesty and integrity with its actions and dealings with internal and external stakeholders. Organizational Structure The security agency is a medium – sized, family-owned and established business although it being a corporation, the Organizational Structure is as follows:
From 2011 to 2012, the active organization structure within the staff is as follows: Within the office staff, rank and position are established per individual but as the staff is only composed of eight (8) persons, tasks and responsibilities are flexible in a sense that one can take over the work of another when needed (eg: field work and even on administrative work). This implies that all employees must have a grasp of what the other is doing at the least as well as they are updated with the current situation of that particular task, so endorsement and take over of the job is easy and workflow continues – there is no disruption.
Interrelationships among office staff members are informal, as the staff is only composed of 8 people and the office space is limited compared to other companies – communication is supposedly more open and there is a friendly atmosphere within the organization. The structure among the security personnel is very different, of course. As this industry follows a militaristic culture, the structure among the guards is very formal and very strict. They are fixed in ranks, starting with the Security Officer/Supervisor/Manager who is in charge of all guards posted in the different locations.
On the field, they act on behalf of the Company Officers. Under the Security Officer/Supervisor/Manager, the Detachment Commander and Assistant Detachment Commander ensures that their detachment works efficiently and effectively as well as follows the orders of the Head Office. The Shift – in – Charge then is under the DC and the ADC who ensures that all orders coming from them are implemented in each shift (as there may be 2 shifts in a day or 3). Rules and regulations of the security industry are very strict and they must be followed, and if not, harsh consequences may be carried out.
Overall, as an agency, there is of course, a formality to the following and implementing of rules and regulations but there is still an open path of communication between security personnel and management – which may be both an advantage and a disadvantage to both parties. As previously mentioned, the organizational structure is pretty informal –there is an open line of communication between management and staff, management is easily accessible to staff and there are no clear lines of process among staff members and between staff and management, as seen in the organizational structure presented above.
In USSAi, the Executive Vice President, as he is also employed in another company completely separate from the agency, is only involved with major decisions and acts as one of the three main signatories for bank transactions and external formal documents. But as it is a family business with an informal structure, he is also informed of day-to-day activities and operations – especially issues dealing with clients – both current and prospective. The Corporate Secretary in USSAi, side from being responsible for carrying out and implementing the decisions of the Board of Directors as well as ensuring that the company complies with all statutory and regulatory requirements, she was also the force behind its sales and marketing – contacting prospective clients and closing deals and transactions. The Corporate Secretary was also very hands on with daily operations with current clients – attending meetings, assisting Detachment commanders and Security Officers with recruitment and scheduling, as well as directly dealing with emergencies and the like.
Along with Administrative requirements, Operations and Sales and Marketing, the Corporate Secretary also was the agency’s main Finance controller/manager – she was responsible for allotting funds for different payables such as government dues (SSS, Pag – Ibig and Philhealth), 13th month pay and she would also be the signatory for checks for payables and the payroll. She was a main component of the company, as she would ensure that all processes would be followed, she would check reports and work with the accountant with the financial statements of USSAi.
All three (3) assistants to the Corporate Secretary would just basically be responsible for all that the Corporate Secretary would need relative to the tasks she is responsible for – they would handle payroll, reports, documents needed, implementation of allotting of funds, transacting between banks on behalf of the Corporate Secretary, take minutes in meetings, attend meetings on behalf of the Corporate Secretary and deal with personal needs as well to the family.
The Senior Security Supervisor is responsible for the following tasks: inspections of the different locations and areas (both in Metro Manila and provincial areas/posts) where guards are posted to ensure that what the clients need are followed and given, that guards follow rules and policies and that their equipment are checked and updated; updates the list of guards and equipment (radios, firearms, transportation, etc) which are submitted to specific government agencies and security governing bodies (SOSIA, PADPAO, etc); and the he is also a mediator between the agency and security guards who file for labor with the NLRC and DOLE.
He is also responsible for most concerns involving and regarding security guards – acts as the liaison between management and security personnel, as well as agency management and security officer/manager of a detachment/post/client. The Security Supervisor under the Senior Security Supervisor handles inspections as well – same as the Senior Security Supervisor, although the Security Supervisor also handles the government dues of the security personnel – he keeps tally of payables to SSS, PhilHealth and Pag – Ibig, as well as he processes loans and requests from personnel.
He is also the liaison between the agency management and one client – Araneta Coliseum. Lastly, the company’s “go – to” guy is the “messenger”, who deals with mostly with distribution of billing statements to clients and contacting clients for the monthly collection of payments, office supplies and equipment and transportation as well as he runs errands for whoever needs help with their work. Compensation and Benefits
Salary is of course based on the minimum wage order that the government implements and the agency strictly follow this – especially for security personnel. Allowance and Over Time pay is given to staff members whose job descriptions and tasks are aligned with these compensations. SSS, PhilHealth and Pag-Ibig are also applied to the staff members and they can take on loans and other benefits from these government institutions.
Each staff member is also allowed to go on leave as long as they inform management of this and that their workload for days on leave will be covered and endorsed. Staff members are also covered with life insurance. USSAi Problem(s) Being a medium – sized family business and having a very informal organizational structure and culture, USSAi is prone to many issues that may affect productivity and the company as a whole.
One is tardiness and absenteeism, management does not strictly enforce this and there are no written policies, rules and regulations on the matter, the staff members tend to not take this seriously. Some staff members tend to think that their tenure in the agency gives them the excuse to come in two (2) hours late, or leave earlier than closing hours. Another issue is trust – as it is a family – owned business, there is a stronger sense of trust in the company – coming from the management towards the staff members.
From money and financial matters of the company to the personal matters of the family, staff members, especially the Assistant Corporate Secretaries handle sensitive matters that have been abused, affecting the company and even the family, as a whole. This concern led to the forced resignation of one Assistance Corporate Secretary at the first quarter of the year, wherein her lack of management skills and lack of discipline and honesty led to the company’s problems with certain payables, which of course, affected the financial stability of the agency.
The problem still continues up to this day as another employee expressed their concern with how funds are being mismanaged by the current Assistant Corporate Secretary although no definitive proof has been presented to management. Lastly, the main problem of the agency is the passing of the Corporate Secretary in the last quarter of the year. As the Corporate Secretary was the driving force of the company and at the same time, she was also a big factor in the many facets and aspects of the company, the agency is a bit lost and having a difficult time with operations and financial concerns.
But mainly, one of the underlying problems that the company has is that it lost its main leader to look up to and follow. As the late Corporate Secretary was the one who led the staff members for more than ten years already, they put their trust and loyalty upon her, and now that she is not longer with the company as she has passed on, there is an implication that the current management may have a more difficult time dealing and solving the problems that they already have, as mentioned above.