Santos Timber Company Case Study

Analysis of the current situation
Environment
The situation presented in the case is not greatly concerned with the economy and the industry for which it is in. However, it is greatly governed by legal matters, specifically, the Labor Code of the Philippines (Appendix A).
Firm
Santos Timber Company (STC) is a logging firm out of a forest concession owned by Alfredo Santos. Initially, it was owned and managed by Santos alone. However, due to personal matters, he acquired a partner, Carlos Vinces, both serving as the general partner and the managing partner, respectively.

The important figures are as follows: Alfredo Santos is the general owner of STC. As seen in the case, he does not exercise the highest form of professionalism. Specifically,

In addition, the company has a high employee turnover ratio, which means that their employees do not stay within the company for a sustained period of time. Majority of which are attributable to the numerous layoffs of incompetent employees.
Point of View
The analysts, in order achieve an objective analysis of the problem, have assumed the point of view of the general manager, Mr. Carlos Vinces. This perspective allows the analyst to have first hand observations regarding employee behaviours and operations.
Statement of the Problem
What would be the most effective and justified decision regarding the dismissal of Felix Cruz such that the operations of the company would not be compromised, dismissal, if such, is well accounted for, and the good relationship of Santos and Vinces is

In order to do this, first, he can request Cruz to apologize to Santos which may possibly reduce Santos’ grudge towards him. After this, Vinces should prove that Cruz is an asset to the company, and that it would be a huge loss to the company if they let such an employee go. If the first two steps are not effective, Vinces can propose an agreement to put Cruz under evaluation for a period of time, before regularization, which they will decide whether or not to fire him. During the evaluation, the company should draft HR policies, which specify the grounds for the dismissal of an employee. This could help enlighten Santos to retain Cruz in the company as well as further substantiate that it is not rational to dismiss Cruz just like that. If Santos will be persuaded then, the company will be able to keep a very dedicated employee. Moreover, it would also continue to benefit from Cruz’s remarkable skills, brilliant suggestions, and good work ethics. Furthermore, this will not create a negative atmosphere in the company or build uneasiness among the employees, due to a supposed unjust dismissal. Needless to say, Vinces will be able to maintain his reputation as a just leader and at the same time, keep decent relations with Santos. However, it is not guaranteed that Santos will indeed be persuaded. He might still want to fire Cruz unjustly