MIASCOR: A Full Aviation Services Provider

(A Case Study)

Researchers:

Andrade, Lizette 13-40731

Derla, Celina
De Chavez, Leah Ann
Delos Reyes, Kristine Mae
Manalo, Gemmille Rose
Maalihan, Rea Isabel 13-19603
Ordoñez, Jelicca Lea 13-70255
Pagcaliwagan, Zyra Belle 13-09958
Payumo, Nanielle 13-18163
Salcedo, Mary Grace

Due Date: May 9, 2018

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 I. Executive Summary

MIASCOR is a full aviation services provider in the Philippines. Founded in

1974, it offers its airline clients a complete suite of services ranging from below- and

above-the wing services. Its core businesses are in ground handling, cargo handling and

warehousing, and in-flight catering. The company’s development saw expansion in its

portfolio which now includes a wide range of ancillary services such as fixed base

operations (FBO), into-plane refueling, manpower deployment, general sales agency

(GSA) and training. Its growing customer base lists reputable airlines based both locally

and internationally that have placed trust in MIASCOR’s customer-focused solutions.

With close to four decades in operation, the Manila-based company is now the largest

and most experienced airport and airlines services company in the country. MIASCOR’s

years in operations has allowed it to establish a strong presence in five major airports and

key cities in the Philippines – Manila, Clark, Cebu, Davao and Kalibo. It is currently the

leading aviation services company in terms of market share for its passenger, ramp

handling and in-flight catering services.

The major problem of this study is the closure of MIASCOR company as declared

by President Duterte. In connection with this, 4000 regular employees will be

unemployed. The researchers recommend to appeal for its reconsideration. Along with

the reconsideration are some of the changes within the organization. Technological

advancement, personality test and higher standards for more competent employees are

some of the proposed changes.

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 II. Statement of the Problem

Main Problem: What are the possible actions can MIASCOR do in order for their appeal

to be accepted and for their employees to be continuously employed?

Regarding the organization of MIASCOR, the following problems are raised:

Short-Term Problem

1. What is the importance of behavior and ethical review of employees?

2. How to develop and tighten the security system in an organization?

Long-Term Problem

3. How to improve the recruitment process of Human Resource Department?

4. What are the acceptable ways to address employee’s misbehavior?

5. How to properly disseminate business goals and objectives in each

employee in the organization?

III. Causes of the Problem

President Rodrigo Duterte has ordered airport and transport officials to terminate

the contract of aviation service provider MIASCOR following the luggage theft incident

at the Clark International Airport in Pampanga.

A statement released by Business Mirror (2018): “Is the gravity of the crime

committed by six MIASCOR Aviation Services employees caught and penalized for

pilfering the luggage of an overseas Filipino worker, commensurate to terminating a

multimillion-peso company, and ending the livelihood of some 4,000 personnel?” was

raised by Ritchel Bernardo, MIASCOR training manager. Although MIASCOR would

not give its actual number of employees, airport sources said it has close to 8,000 to

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9,000 employees, with about 40 airline clients, making it the current leading aviation-

services company in terms of market share for its passenger, ramp handling and in-flight

catering services.

The “eviction” order came after six employees of the ground-handling firm at the

Clark International Airport were charged with theft in connection with the high-profile

luggage-pilferage incident. The victim involved is an overseas Filipino worker (OFW)

whose video of his looted baggage went viral on Facebook. MIASCOR paid OFW

Jovenil de la Cruz some P80,000 in damage compensation. However, his Facebook

account of the looting, including the snapshots of the damaged suitcase, went viral,

angering many Filipino migrant workers. They expressed sympathies to de la Cruz, to

whom President Duterte even apologized later for the incident. It was on July 8, 2014,

when MIASCOR signed a lease and concession agreement with the MIAA. It is the

ground handler under contract with airlines that service flights in Clark and other airports

in the country, including the NAIA.

Having codes and policies in place that address ethics is not enough. Employees

need to be taught how to respond in situations involving ethics. Therefore, many

managers enroll their employees in an ethics training program. Ethics programs often

involve activities that encourage ethical behavior and reinforce a company’s ethics

code/policies.

According to Goessl (2013), the relationship between business and ethics is

intrinsically entwined. A successful company is one which can effectively recognize and

cultivate the relationship which exists between the two. Businesses that exhibit and

promote strong corporate codes of ethics are more prosperous in the long run because

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they show a commitment to an expectation of sound moral behavior. This demonstrates a

dedication to society, customers, employees and the business itself. It also enhances a

company's reputation if they become commonly known as an ethical company, and this

brings more value to the organization.

It's easy to blame "the system", yet many fail to realize "the system" is comprised

of decision making individuals. The relationship between business and ethics is

inherently linked, but there are some who fail to make this connection.

To say "business is business" is not justified, as responsible (ethical) decision making is

an important component of doing good business.

Good business practices start with management setting standards of what's

expected, and they should lead by example. The establishment of higher levels of ethical

behavior within a business benefits the company in many ways. It displays strong values

have been set for a commitment to company philosophy and mission. There is no good

reason why a company cannot make ethically sound decisions, and still turn a profit.

Cheating and/or lying do not bring value to a business, and it also affects employee

morale. Employees and reputation are two very valuable assets, and by promoting a

morally sound environment for both employees and customers; this can only enhance

those assets.

Consumer trust and confidence in a business can only serve to benefit the

company. Economic rules dictate that the larger a network, the more value is added to

that network. If customers can accurately rely on the fair treatment, expertise and

knowledge of a company, this will further expand their reputation as honest and as a

result attract more customers. This ultimately economically benefits the company as well,

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and their network will grow. This being the case, it would be in a company's best interest

to promote universal ethically good behavior in the workplace.

A positive reputation leads to higher profits and provides better service for the

public. Ethics and business go hand in hand, and cannot effectively be separated.

Ultimately implementing a strong ethical policy is a win-win situation for all.

It might be hard to imagine that your own employees would actually steal from

your business, but surprisingly it does happen more than many business owners might

think. According to the U.S. Department of Commerce, approximately 75% of employees

steal. Unfortunately, in this day and age, one of the only sure-fire ways to catch them in

the act and reclaim your assets is with a surveillance camera. When employees know

they're under surveillance, they'll think twice before taking such a risk.

IV. Decision Criteria and Alternative Solutions

The researchers used the ease of implementation as criteria in order to come up

with alternatives solutions to the problem. When it comes to seeking continuous

improvement in the business, it can be done through brainstorming and engaging with

employees and to develop a list of potential improvement ideas. The issue then becomes

with all these potential improvements, which should be implemented and in which order

of priority.

The solution then is to select projects which have a high impact to the business

but are relatively easy to implement. The best process for establishing this is to map each

project against a scale as to ease of implementation versus impact to the business. The

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improvement ideas that have the greatest potential impact and are relatively easy to

implement are the ones that should be attempted first.

The researchers came up with two alternative solutions for the problem. First is to

appeal for the reconsideration of the President of his decision and second is to look for a

new job of the dismissed employees.

Reconsideration of the president comes along with a proposal for some changes in

the organization. The following are some of the proposals:

 Technological advancement (surveillance cameras on clothes)

One of the biggest pros of video surveillance for employers is that they

can use recorded videos of employees while on the job to detect deficiencies that

can often be corrected by additional training. Employers can use electronic

monitoring to determine if workers are using company time for engaging in

unproductive activities such as playing video games, sending personal emails or

aimlessly surfing the Web. Video surveillance can spot signs of harassment and

other unacceptable behaviors that can contribute to a hostile work environment. A

business surveillance positive for employees is that it helps employers identify

and place their trust in the productive workers who prove to be an asset to the

organization.

The main disadvantage of security cameras is their inability to truly stop

crime. Security cameras are spectacular for documenting and assisting in the

criminal prosecution or investigation. However, these pieces of business security

cannot prevent or stop crime from occurring within your business.

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 Personality test

Personality assessments help you to understand the values, motives, and

preferences of employees and will help you know what they need from you as an

employer to stay engaged. Personality tests can be used to enhance your

organization’s culture by understanding each employee’s communication styles,

leadership styles, learning styles, and level of introversion or extroversion.

Although personality assessments can help to provide a deeper insight into

a candidate’s motives, values, and work styles, they do not give the final verdict

on which candidate is the right one for the job. Personality assessments are not

prediction tools. They simply provide you with indicators for success.

Overall, the right personality fit is critical for good performance.

However, it is important to keep in mind that personality assessments are not a

stand-alone tool. They should be used only in conjunction with other employee

screening techniques such as behavioral interviews and references to reflect all of

an applicant’s characteristics. Some tests are better predictors than others, so it is

important to do your research. All tests should be job-related, consistent with

business necessity, and compliant with any federal and state regulations

pertaining to pre-employment testing

 Higher standards for more competent employees

Calling personal references may also help hiring managers filter out less

ethical candidates. Although this method is used often, it is important to be aware

that references often withhold negative information about a candidate. Managers

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 should supplement references with another method of weeding out dishonest

candidates.

Best practices in the selection and hiring of ethical employees involve

including the company’s most ethical employees in the interview process.

Interviewers already doing the job a candidate is applying for can ask relevant

questions that can lead to answers that reveal a lot about the candidate, such as a

propensity to make unethical decisions.

The second alternative is new jobs for their employee. The management of

MIASCOR may talk to other ground-handling services to accept some of the dismissed

employees, like Dnata, Skylogistics, Macro Asia and Pair Pags.

Pros

The employees will be continuously employed without the need for looking a new

one. They won’t suffer from unemployment and might find fulfillment in their new job.

Having a new job can lead to more abundant opportunities, both in terms of career

advancement and salary.

Cons

There will be an adjustment period to undergo and that the income might not be

as great as before. Also, there is no guarantee that the job you find will be better. You

may face similar issues in your new role that forced you out of your previous position --

whether that's conflict with bosses, not getting along with co-workers, or getting stuck in

a rut.

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 V. Recommendation Solution, Implementation and Justification

The researchers recommend the first alternative because it will be best for the

company and not only for its employees. If the appeal will be accepted, a new

organization will emerge, more competent and more dedicated to its customers. One of

the changes will be the method of selecting and hiring ethical employees through the use

of personality tests or situation-specific questionnaires. Personality tests can be used to

determine temperament, outlook, and mood. Situation-specific questionnaires can be

customized by a company and used to uncover how a candidate would react when faced

with an ethical dilemma.

Along with it is the creation of a corporate policy on Internet and device usage

that makes rights and responsibilities clear to everyone and that bolsters your case should

you face a legal challenge. Employers should define their risks and security needs, weigh

employees' expectations and develop a policy that strikes a balance, Walls says. Set rules

for acceptable use of email, instant messaging, social networks, blogging and Web

surfing, as well as for downloading software and apps. Also, consider establishing an

electronic code of conduct for employees to sign.

A policy also should spell out how monitoring will be done and how data will be

secured or destroyed. Protect your business and your employees by putting a high-level

manager in charge and putting checks and balances on his or her power. Explain the risks

to the business from improper use of digital assets, the company's digital policy, the

limits on employee privacy in the workplace and the fact that monitoring will occur.

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 "You need to have the transparency, that fully informed consent, or you run into

morale issues or legal issues," Walls says. Moreover, simply letting people know you're

watching can have an important deterrent effect.

Only Delaware and Connecticut require employers to notify employees about

electronic monitoring, but it's a sound practice wherever you live, Flynn says. Reassure

employees by saying: "Listen, we're not electronic voyeurs. We're not monitoring

because we're nosy and want to find out all about your divorce. We are monitoring

because we are obligated to maintain a compliant workplace." Encourage employees to

keep private communications to home computers and personal smartphones.

Contingency Plan

If the appeal is denied, the researchers are considering that the management of

MIASCOR may have an agreement with other ground handling services to employ their

dismissed employees. This alternative is not beneficial to all employees but somehow

will give help to some. Not all of the employees dismissed will be accommodated or

hired by other companies due to their great number. Those employees with great

qualifications might be preferred over those with low qualifications. In the end, at least

somehow the number of their employees being unemployed will be lessen.

Models and Theories

A “Just Cause” standard can be used in correcting the misbehavior of employees.

Corrective action for classified non-union and contract classified staff must meet the “just

cause” standard. There are six factors to assess whether there is just cause for corrective

action in a given situation. Those are adequate notification of performance or conduct

issues, reasonable expectations and standards, fair and objective investigation, substantial

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evidence, consistent treatment, and appropriateness of corrective measures. Failure to

meet these six “just cause” factors can result in a corrective action decision being

reversed or appealed if challenged.

Rational Choice Theory also reiterates the same thought. Such that, from a normal

perspective, humans are essentially rational beings who Being hedonistic, humans will

naturally make decisions that will avoid pain and provide the greatest amount of pleasure,

even if it means violating the law (Bentham, 1789). This only proves that the employees

who are tempted to steal from their companies are considered to be keen. They know that

they have the opportunity to take advantage of the low risk detection and apprehension

for their personal gain.

In addition, Cohen and Felson’s (1979) ‘routine activities theory’ also accounts

the agents for the possible causes of employee theft. Specifically, this theory asserts that

the occurrence of crime is a product of opportunity related to three factors: (1) motivated

offenders, (2) suitable targets, and (3) the absence of capable guardians. These are the

three logically required conditions which must be present before a theft can occur. This is

sometimes called the ‘theft triangle.’

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