Rafael Co Jae Hyeon Ko Elisha Soriano Kaye Sy Mariel Wong FABUMAN Case # 3 Abby de La Paz, the boss of the

company, is encountering a systems overlap between the family system and the business system. These problems involve family relationships, personal and working relationships, operational, and change of management within her company due to her arrogant niece, Diane. Unlike the issue with her daughter Cathy, this problem is more complicated since it will affect Abbys relationship with her sister, Cora, who was always there to help her. First of all there are two options available for families with businesses according to the lectures discussed in class. (1)The business should not hire family members to avoid nepotism; uncontrolled nepotism happens when all family members are hired not minding the individuals qualifications and (2) to have an objective view on nepotism hence the business should hire competent family members only. To answer Abbys question What can we do?, we looked at the problem through the family, owner, and business perspective altogether. Although Diane is related to the owner, she is not competent and qualified enough as a sales agent of the company and she also does not do her job very well. Shes more trouble for the company than shes worth. We believe that Abby should have tested Dianes knowledge about the business in order to know what kind of position she deserves to be in, instead of automatically putting her in a position that other sales agents worked hard to get to just because she is her niece. She should be looking at this at a business perspective; instead of making it personal as to maintain the companys work ethics and values. Since it is too late for her to realize that, she should give Diane the proper punishment that she deserves and right her wrongs, which in this case is to give her an oral warning. Abby should take the time to sit down with Diane and confront of her with all the trouble shes been causing in the company. This would give Abby a chance to know whether Diane is sorry for her actions or not. Secondly, since Diane does not know how the business of the company works, then she should undergo proper training for proper employee conduct and to increase her knowledge on operations. If this wont solve the issue, Diane should be put in a different position that she deserves to be in as to follow the policies of the business. Abby should also be able to talk to her sister about the situation in order to avoid future misunderstandings that may occur if Diane causes trouble again. To conclude this case, the owner should not have involved her family in the business if they arent capable of doing their jobs well. If they do want to be in the business, they should be

able to prove their skills first regardless if they are related to the owner and should go through what every employee in had. They should also be able to know what they can do to contribute to the business and how they can help it grow. We recommend for Abby and Bert to deal with current problem by giving employee training to Diane to better work with other employees without interruption. Although Diane is Abbys niece, she should be given the same treatment as the rest of the employees have received. If training doesnt work then it would be best to talk to Cora about the situation to see if she can help resolve the issue. Giving exception to break a rule for Diane occurred discord with other sales agents and most of them wants to resign because of this. Letting Diane do whatever she wants to do will eventually bring big loss to the company and closing of business at last. Therefore, she needs to undergo employee training to refresh her business skill and she should not be treated specially. Punishment is also required for her if she violates any regulations of the company to make harmony with other workers and for the prosperity of the business.