I. INTRODUCTION

Management and organization are considered as two of the most important factors in

building an empire, the building block of every business. This two are always related with each

other. To have a full understanding of the linkage between this two, it is good to start with the

definition of each. What is management? How about Organization?

Starting with organization, an organization are consists of employees efficiently

controlled by what we so call “managers”. If there were no organizations then eventually we

don’t need managers. According to the book “Management” by Stephen P. Robbins and Mary

Coulter, an organization is a deliberate arrangement of people to accomplish some specific

purpose. Colleges and Universities are considered as organization; and so are fraternities,

government departments, churches, corporations, sports teams, clinics and even our small

neighborhood are also considered as an organization. It is said that every organization has

distinct purpose, expressed in terms of a goal or set of goals that the organization hopes to

accomplish. An organization is composed of people, one person working alone is not an

organization, and it takes people to perform work that’s necessary for the organization to achieve

its goal. All organizations develop some deliberate structures so that the members can do their

work. Structures could be open or flexible, with no clear and precise delineations of job duties

or strict adherence to any explicit job arrangements, in other words a simple network of loose

work relationships or the structure may be more traditional, with clearly and carefully defined

rules, regulations and job descriptions and some members identified as “bosses” who have

authority over their members. But no matter what type of structural arrangement an organization

uses, it does require some deliberate structure so members work relationship are clarified. In

summary, the term organization refers to an entity that has a distinct purpose, includes people or

1

members and has some type of deliberate structure. Organizations do change as time passes by,

primarily because the world around them changes also. Societal, economic, global and

technological changes have created an environment in which successful organizations must

embrace new ways of getting their work done. It includes “information explosion”, increasing

globalization, and changing employee workplace expectations. Even though the concept of

organizations may be changing, managers and management continue to be more important to

organizations. Organizations could also be traditional or new. Traditional organizations are

stable, inflexible, job- focused; work is defined by job positions, individual- oriented, permanent

command oriented, rule- oriented, relatively homogeneous work force, hierarchical relationships

and works at organizational facility during specific hours. However new organizations are

dynamic, also flexible, skills- focused, the work is defined in terms of tasks to be done, team-

oriented, involvement- oriented, the employees are part in decision making, customer- oriented,

diverse workforce, and workdays have no time boundaries, and works anytime and anywhere.

Just as organizations have common characteristics, so do managers. The term

management refers to the process of coordinating and integrating work activities so that they are

completed efficiently and effectively with and through other people. The process represents the

ongoing functions or primary activities engaged in by managers. These functions are typically

labeled planning, organizing, leading and controlling. Efficiency is a vital part of management. It

refers to the relationship between inputs and outputs, because managers deal with scares input

resources- mainly people, money and equipment thus they are concerned with the efficient use of

these resources. Management therefore is concerned with minimizing resources costs.

Management however is also concerned with completing activities so that organizational goals

are attained, and so effectiveness is also important. Effectiveness is often described as “doing the

2

right thing”, that is those activities that will help the organization to reach its goal. Effectiveness

is attainment of organizational goals. Management survives for: Low resource waste (high

efficiency) high goal attainment (high effectiveness)

People in all walks of life; have come to recognize the important role that good

management plays in our society. The study of management for those who aspire to managerial

positions provides the body of knowledge that will help them to be more effective managers.

For those who do not plan on careers on management, the study of management can give them a

great deal of insight into the way their bosses behave and into the internal activities of

organization. Studying management is will help us in improving the way organizations are

managed, because we interact with organizations every single day of our lives. Another reason

for studying management is the reality that for most of you, once you graduate from college and

begin a career, you will either manage or be managed.

II.STUDY OBJECTIVES

The study aims to achieve the following objectives:

General Objective:

To be able to identify the management functions and processes and the issues/ problems

with regards to change and creativity.

Specific Objectives:

1. To be able to describe and identify planning practices in the company

2. To be able to identify the organizing functions

3

3. To be able to determine the leading function and management styles and approaches

4. To be able to identify management control in ILECO 1

5. To be able to identify issues/problems encountered with regard to change and

creativity and future directions

III. STUDY METHODS, SCOPE AND LIMITATIONS

In this study, data and information gathered were generated with the aid of ILECO 1’s

Annual Report Booklet. An interview with ILECO 1 staff was also conducted in order to gather

additional information on the cooperative’s planning practices, organizing functions, leading

function and management styles, management control, and issues and problems regarding

change and creativity.

IV. COMPANY PROFILE

A. Brief History

In 1971, as to the Memo Order No. 395, Provincial Electric Cooperative Team

(PECT) was organized to promote and assist the organization of rural electric

cooperatives (RECs). On November 26 1974, ILECO 1 energized the first towns,

Tigbauan and Oton. ILECO 1 energized the towns of San Miguel, Alimodian, Leon,

guimbal, Miag-ao, anmd Tubungan in the year 1975. A year after, it brought the

energization of the towns Igbaras and San Joaquin. In 1977, the towns Sta. Barbara,

Leganes, Cabatuan, Maasin and Pavia recived energization.

4

On August 22, 1978, ILECO 1 was granted by the National Electrification

Commission authority to operate light and power service for a period of 50 years or

until 2008.

In 2005, the National Electrification Commission (NEC) approves extension of

franchise of ILECO 1 up to year 2053.

B. Description of Business Undertaking

The cooperative’s coverage area comprises of the different towns in the province

of Iloilo. These are Miag-ao, San Joaquin, Cabatuan, Maasin, Oton, Pavia, San

Miguel, Sta. Barbara, Leganes, Tigbauan, Guimbal, Leon, Alimodian, Igbaras and

Tubungan.

The best role ILECO 1 take is to be the ideal electric cooperative that it should be:

To serve its coverage area with reasonable cost of electricity and 24-hour reliability.

ILECO 1 serves its coverage areas with the following mission and vision statements:

Vision Statement

“We will be the ultimate and trusted name in power industry”.

Mission statement

“We will work for total electrification and deliver quality, reliable and safe

electric power that is viable, cost effective and environment-friendly; we will provide

honest and courteous service; we will create a rewarding working condition with

5

unyielding quest for customer satisfaction; we will seek to attune with technological

advancement; we will project a corporate image and be socially responsive to the

community we serve”.

ILECO 1 adopted Corporate Philosophy and Corporate Values to set the proper

direction of its Mission Statement. These are:

CORPORATE PHILOSOPHY:

EEFICIENT SERVICE FOR RESPONSIBLE MEMBERSHIP

CORPORATE VALUES:

1. LOYALTY

-standing by the objectives and mission of the cooperative and defend its interests

2. PRODUCTIVITY

-working for maximum output using the available resources and constantly

seeking for improvement towards customer’s satisfactions

3. RESPECT

-treating all whose lives been touched with respect, listening to individual opinion

towards an atmosphere of unity and belongingness therefore achieving a sense of

well-being in interpersonal relationship.

4. TEAMWORK

-working together harmoniously and be committed to make the vision into a

reality

5. TRUSTWORTHY

6

-conducting business on the foundation of trust, courtesy, honesty and reliability,

keeping in mind that we are partners of the cooperative.

Some policies of ILECO 1 focused on the Collections and Amortization.

Collections

This is one of the most controversial monthly activities of the Coop that draws

a lot of criticism from both members and consumers because of strict enforcement of

disconnection of delinquent accounts.

Amortization Payments

As regards to amortization payments, they maintain the advance amortization

of Php 5.7 million with NEA the purpose of which is to accelerate payment of loans

bearing 12% interest.

Among the top performing electric cooperatives, ILECO 1 was among those

remarkable performances. During the Lumens Recognition Night at the Regal Hotel

in Davao City, the NEA gave ILECO 1 the following Awards:

1. The Emmanuel N. Pelaez Award for the Best Electric Cooperative of the

Year- for excellent performance in all EC operation that exemplifies its

preparedness to compete under a deregulated electric power industry and for

its valuable contribution to the economic upliftment of consumers in its

coverage area through electrification.

7

2. Special Citation for Excellent Rating in Scorecard on EC Corporate

Governance- for balanced management of all aspects of EC operations:

financial, technical, institutional and information technology that redound to

viability.

3. Special Citation to an EC with the Most Number of Additional Consumer

Connections- in recognition for its contributions in achieving the milestone of

8 Million consumer connections.

4. GM Wilfred L. Billena was elevated to the Grand Hall of Fame for the Pedro

G. Dumol Award- for receiving the prestigious award for the Best General

Manager for three times in the years 2005, 2007, and 2008, for having

elevated to fame in 2009 and for his excellent performance, undisputed

competence and good governance.

These awards were as of year 2008.

8

C. Organizational Structure and Design

ILECO 1 is managed by a general manager. Reporting to the Board of Directors, the

general manager is responsible for enforcing the policies and governance set forth by The Board

in the operation. The GM is directly authorized to implement policies to maximize revenues and

minimize operational costs, which generally translates into direct Profit & Loss responsibility.

As front-line managers, department managers, division chiefs and section heads serve

more than one constituency, a fact that requires them to assume multiple roles. They are the

primary spokespersons for department, division, and sections faculty and staff.

9

GENERAL MANAGER

Department Managers

Division Chiefs

Section Heads

Service Center

Supervisor

Area Manager

Cashier

Internal Auditor

Department managers, Division Chiefs, and Section Heads articulate the needs of their

scope to the general manager. Consequently, they are the essential link between the

administration and members. When they fulfill their role effectively, there is good

communication between the administration and faculty. When chairs do not succeed in this task,

there is often a lack of trust between the administration and the faculty because neither

constituency understands either the needs or perspectives of the other.

The Internal Auditor is responsible in fraud detection. Sometimes, they are called fault

finders. Fraud detection auditing procedures are now customized for each audit engagement

based on an analysis of the risks of fraud occurring in the organization being reviewed.

Service Center Supervisors are the ones in charge of the operations of service centers

found in different towns of coverage.

A Cashier is responsible for maintaining outstanding customer service as per Company

standards, processing sales quickly, accurately and efficiently, cash register operations and

safeguarding company assets. Some tasks of the Cashier are as follows; ensure that each

customer receives outstanding service by providing a friendly environment, which includes

greeting and acknowledging every customer, maintaining outstanding standards, solid product

knowledge and all other aspects of customer service, maintain an awareness of all promotions

and advertisements, and accurately and efficiently ring on registers and accurately maintain all

cash and media at the registers.

10

V. MANAGEMENT FUNCTIONS AND PROCESSES

“An organization with good management stands the test of time.”

The Iloilo I Electric Cooperative Inc. highly aims to be the ideal cooperative that it

should be: To serve its coverage area for total electrification and 24-hour reliability. It is stated

in its mission: Working for total electrification and deliver quality, reliable and safe electric

power that is viable, cost-effective and environment-friendly. To be able to meet all of the

organization’s expectations, the general manager and the rest of the members strictly practice

good management, implement functions and processes to the different areas of the cooperative

and to all its personnel from top to down. Every detail from planning, to organizing, to leading

and controlling is carefully scanned and discussed to ensure that everything is put to order since

ILECO I strictly wants to preserve and strengthen its viability to function as it is and be a

medium in energizing the country side.

A. Planning Practices in the Company

Planning is important management function since it serves as the foundation on the

success or accomplishment of the cooperative.

ILECO 1 is managed by a general manager, organization’s goals. Every plan and all its

supporting plans can greatly contribute to the completion of organization purpose and objectives.

ILECO1 always considers planning as a crucial step and so every plan is carefully done

to minimize error and regret. In this kind of organization, planning is a given task of the general

manager and it usually initiated by him. When problems or changes arise, the general manager

takes the full responsibility on formulating strategies addressed to these things. The plans will be

11

formulated with the participation of the Board of Directions for suggestions and approval. The

plan is presented to the department managers, division chiefs, and section heads to be ready for

implementation.

The three departments of the cooperative: financial, technical, institutional, also make

their own plans which will be presented to their respective section heads and latter be consulted

to higher authorities.

The ILECO 1 holds an Annual General Membership Meeting. This meeting will be

attended by the different District Committee Members, Committee Members and Officers. In this

annual general membership meeting, the cooperative will have the election of officers. Also,

business arising from the minutes of the previous meeting will be tackled and reports will be

presented from last year’s operations.

Aside from this, the different committees meet every first Friday of the Month to talk

about the operations and other important issues regarding the services. During the last Friday,

they again meet for announcements and other matters.

B. Organizing Functions

In an organization, people can work most effectively if they know the parts they are to

play in any team operation and how their roles relate to one another. Organizing is a function in

which synchronization and combination of human, physical and financial resources takes place.

Iloilo I Electric Cooperative sees to it that its organizing processes are properly done so

to improve and force out the best of its employees and members. General Manager Wilfred

Billena emphasizes that to be lean and mean organization; one should limit the number of

employees with continued employee attrition. The cooperative has actually a wide scope of

12

service area, serving 15 towns in Iloilo but it is not a barrier to keep the operations on track.

Even the small number of employees is not a disadvantage to the organization. In fact, it

becomes one of the many of ILECO’s efficiency indicator. The ratio of its consumers to

employees stands to be one of the best in the Philippines at 448:1. This situation forces the

employees to increase their efficiency and upgrade their competencies in the discharge of their

job to satisfy more consumers. The lesser the employees the organization has, the more well-

organized it is.

The cooperative is composed of three departments, the financial, the technical and

institutional. Each department has its own department manager. Also, its coverage areas have

three divisions namely, Oton, Miag-ao and Sta. Barbara and these are headed by the division

chiefs. Under the three divisions are the service centers or the towns it covers which are managed

by the section heads. And all of these are under the control of the general manager. The Board of

Directors also play a role in decision-making processes of ILECO I.

The Management Team is composed of the General Manager and the Management

Committee (MANCOM) which is further composed of the Department Managers, Division

Chiefs and Section Heads. The general manager is the one responsible for enforcing the policies

and governance set forth by The Board in the operation. The GM is directly authorized to

implement policies to maximize revenues and minimize operational costs, which generally

translates into direct profit & loss responsibility. When the organization incurs losses, it is due to

manager’s poor implementation and when it incurs profits, it’s the other way around. The finance

services manager oversees the preparation of financial reports, direct investment activities, and

implement cash management strategies. Financial Manager also develops strategies and

implement the long-term goals of their organization.

13

The duties of financial managers vary with their specific titles, which include controller,

treasurer or finance officer, credit manager, cash manager, risk and insurance manager, and

manager of international banking. Controllers direct the preparation of financial reports, such as

income statements, balance sheets, and analyses of future earnings or expenses, that summarize

and forecast the organization's financial position. Controllers also are in charge of preparing

special reports required by regulatory authorities. Often, controllers oversee the accounting,

audit, and budget departments. Treasurers and finance officers direct their organization's budgets

to meet its financial goals. They oversee the investment of funds, manage associated risks,

supervise cash management activities, execute capital-raising strategies to support the firm's

expansion, and deal with mergers and acquisitions.

The Technical Services Manager creates and executes development plans and revises as

appropriate to meet changing needs and requirements. The Technical Manager reports to the

plant General Manager and responsibilities include: accountable for all plant operations,

production goals and laboratory operations, oversee accountabilities for all aspects of

environmental, health and safety of all plant personnel, plant operations and the community in

which we operate, ultimately responsible for performance management of all operations and lab

employees. This may include: interviewing & hiring, performance reviews, goal-setting,

production goals, disciplinary action, career development, succession planning, supervises

maintenance, operations, and lab staff on a day-to-day basis, including determining workloads

and schedules, implementing and interpreting policies and procedures, evaluating and training

staff, approving and making hiring and termination recommendations, strive for maximum

efficiency in plant operations, optimize plant up-time or runtime and minimize all plant

downtime, and ensure that all plant policies are implemented and followed.

14

THE BOARD OF DIRECTORS OF ILECO1

SALVADOR P. CABALUNA III

President

DISTRICT 6-Leon & Alimodian

LEX ANTHONY CRIS A. COLADA

Vice President

District 5-Guimbal & Tigbauan

MALVIN R. NAD

Secretary

District 3-Oton & Pavia

MARIA SOPHIA S. PADILLA

Treasurer

District 4-San Miguel, Sta Barbara & Leganes

ROBERT B. MAROMA

Member

District 2-Cabatuan & Maasin

FERDINAND E. ESMEJARDIA

Member

District 7-Tubungan & Igbaras

FRANCISCO S. SETUBAL

Member

District 1-Miag-ao & San Joaquin

WILFRED L. BILLENA

General Manager & Ex-Officio Member

The General Manager and Management Committee

Wilfred L. Billena General Manager Flora C. Malaga Service Center Supervisor

Gloria B. Lo Finance Services Manager Ofelia M. Malaga Service Center Supervisor

Reynaldo A. Sobusa Institutional Services Manager Vicente F. Valencia Service Center Supervisor

Rolando T. Torreflores Technical Services Manager Melissa S. Santillana Cashier

Yolanda V. Torreflores Internal Auditor Orson N. Nite Meter Reading Section Head

Grace Laarni B. Custodio Staff Assistant Nenita T. Tacuban MD/EA Section Head

Carol S. Cabanero Finance Division Chief Jaime Napilan OIC BAPA Section

Jerry D. Dignos Engrg. Services Division Chief Marilou G. Cabanilla Human Resource Section Head

Rodrigo V. Resano Line Services Division Chief Henry Calacasan Line/Upgrading/Consn Secn Head

Froilan S. Malaga Area Manager Philip Bertomo OIC, Systems Operations Section

Lucila M. Grana Area Manager Marcelino Cabanilla Materials & Warehouse Secn Head

Bernadette B. Suyao Area Manager Melchor H. Escaba AM/FM Section

15

C. Leading Function and Management Styles

A certain leadership style should be most effective in different types of situation. The

leader should fit the leadership style to the kind of organization he or she manages to promote

efficiency in the work place.

In ILECO I, only one person has control over all of the workers or followers. The general

manager is in complete control yet if necessary, employees are also permitted to make any

suggestions or offer any opinions especially if it may benefit the group. However, in aspects of

rule and policy implementation, ILECO’s GM becomes an autocrat. It is a sin in the organization

to disobey rules and policies. All of these are made sure that is followed properly by its

members.

Since the general manager has to perform many roles in the organization, friendly but

strict style of management is applied here. Subordinates take part in decision making and also

gives them a considerable degree of autonomy in completing routine work activities and at the

same time are told exactly how to do their jobs.

Motivation of employees is not ignored within ILECO premises because employees are

treated importantly and the success and failure of the accomplishment of the Coop’s goals lie on

them. Not every employee is the same. Some employees inherently have the capacity to do more,

some don't, some walk the extra mile and some just don't. Thus, members’ achievements are

given high regards. This is considered important in ILECO because it encourages other

employees to perform well and improve whatever skills they have. Recognition of

accomplishments promotes high efficiency among the members of the organization. Judging the

performance of the employees and designing rewards accordingly will motivate them to do more.

The GM always makes sure that the employees receive praises through reasonable bonuses, and

16

personally patting their backs once in a while. A part of recruitment process includes

highlighting of every aspect of workers’ talents. GM keeps a keen eye for knowing the human

resource, by recognizing the talent of every employee, keeping a track and enhancing their

productivity.

Employee training programs are also good ways of breaking away from the monotony to

unleash their minds. There are frequent trainings and seminars conducted by ILECO to improve

workers’ skills. Efficient service and self evaluation trainings are only a few of the trainings

often attended by the employees. The aim is to have optimum utilization of human resources,

development of human resources, development of skills of employees, increase productivity,

build team spirit, develop organizational culture and climate, have a healthy work environment,

uplift morale, create a organization image and increase profitability . Training and development

helps optimize the utilization of human resource that further helps the employee to achieve the

organizational goals as well as their individual goals. This can also be of great help in providing

an opportunity and broad structure for the development of human resources’ technical and

behavioral skills in an organization. It also contributes to employees attaining of personal

growth. It further increases the job knowledge of employees at each department and helps

expand the horizons of human intellect and overall personality of the employees. And what is

good about trainings is that it can lead to improved profitability and more positive attitudes

towards profit orientation.

Also, the organization does not ignore money and monetary rewards. It is also a best way

on increasing employees’ efficiency. In the technical department, employees aim to enhance

collection efficiency and lower system loss. The incentive given to the employees is based on

17

their collection efficiency. The higher the efficiency, the higher the incentive they will receive.

The principle is also the same with the system loss. The smaller it is the better.

Just as how important motivation and other management processes are, communication is

also given the same weight. Usually, in ILECO the information flows from the top management

down to the employees. When there are announcements to be made, it is done during Mondays

wherein all employees meet and also when a mass is held in the workplace. ILECO also gather

all of its employees during the first Friday of the month to discuss issues and other concerns with

its members. It is very important to have a good communication strategy within or even outside

the organization to avoid ignorance, to let the members know the updates about the organization.

Communication ensures that everyone understands the goals of the Coop, their part in achieving

them and what they can do to make sure that the goals are achieved. The time lost through lack

of direction and misunderstandings will be dramatically reduced.

D. Management Control

Controlling is very essential to an organization just as how other management functions

are. It is really important to measure and correct performance in order to make sure those

organization objectives and the plans devised to attain them are accomplished. In controlling

actual performance is compared with the planned performance. Controlling enables the

organization to adapt to change and uncertainty, to discover irregularities, to reduce cost,

increase productivity or add value, to detect opportunities, to deal with complexity and to

decentralize decision making and facilitate teamwork.

18

IECLO I performs a tight control over its resources, be it human or material. The most

controversial monthly activity of the Coop that draws a lot of criticism and resentment from

member-consumers is how strictly disconnection of delinquent accounts is enforced. This is

however the only means by which the Coop can control the mounting receivables on a month-to-

month basis. Laxity on enforcement of disconnection would only dislocate the now healthy

financial position of the organization. Also, to have control over the materials and other

equipment of the Coop, warehouses are built, a place where all these are kept in security. Loss of

materials is unpleasant since it can affect the budget of the Coop. Efficient use of all materials is

very important to the organization.

ILECO I practices effective budgetary control. The general manager is the responsible for

the budgeted programs. The budget officer only assists the GM in preparation and use of budget.

To make it more effective, it is consulted to the Board of Directors for approval. Usually, in

making the budget, divisions and departments make and defend their budgets and participate in

the review. Standards by which programs and work can be translated into needs for labor,

operating expenses, capital expenditures, space and other resources are also set. Finally, the

general manager uses information as to actual and forecast performance under budgets by their

departments. Just as how the technical department works. Power to be purchased, sales and

losses are monthly forecasted based on the previous month’s data and also on the seasonality.

The performance evaluation is an opportunity for employees and their supervisor to meet

and discuss the employee's job performance within an established period of time. The review

will include a discussion regarding the achievement of a set of goals previously established. It

includes a 360-degree review, or assessments from the employee's supervisor, peers,

19

subordinates and customers as well as a self-assessment. Evaluation of employees’ performance

is given importance. Employees are evaluated quarterly by their supervisor. They are graded

according to their performance for that period.

The performance evaluation is a time to focus on increased communication, establishing

clear expectations and reinforcing good performance while improving unsatisfactory

performance. From a supervisor's point of view, it is also an opportunity to document specific

criteria for salary increases, promotions or disciplinary actions. It also involves the process of

setting new or revised goals with a plan of action for the next period.

If there is any difference or deviation then finding the reasons for such difference and

taking corrective measures or action to stop those reasons so that in future there is match

between actual and planned performance. Controlling is not the last function of the organization

but it is the function which being back the management cycle to planning.

VI. MANAGING ORGANIZATIONAL CREATIVITY AND CHANGE

A. Fostering a Climate of Creativity and Areas of Change

System improvement and Rehabilitation:

ILECO 1 is always concerned with lowering systems loss and enhancing system

efficiency. They were able to rehabilitate 16.673 kms. Of over loaded lines and installed a

total of 254 units of transformers with an aggregate capacity of 5,976 kVA. Coupled with the

activities, ILECOI had changed a total of 4,409 kWh meters replaced 536 pieces of rotten

poles. Line clearing was also conducted to a total of 1,164 kms of overhead lines. The

20

cooperative continues to further its mandate of total electrification of the country side with

the construction of a total additional 47.329 kms of different kind of lines.

Financial Strength. The ultimate indicator of financial strength is cash position or

liquidity, because in business cash is king. Cash position is an important factor for fast

recovery in times of adversities. This was their reason why, right after typhoon Frank, when

ECs in Panay where offered calamity loans, the coop did not bother to take a second look.

The liquidity stood up to Php 171 million as of yearend.

Sister Cooperative Program. The sister cooperative program relationship with Kandiyohi

Power Cooperative that was started in 1994 had been one of their exciting accomplishments.

Programs/activities:ILECO-I continues to maintain its radio program alternating with

ILECO-II every Sunday at 4-5 pm over DYOK “Aksyon Radio”. Aside from whatever current

information on the coop and the industry discussed, the program had also turned exciting with

its version of Trivia where compact fluorescent lamps are at stake to participants who send

correct answers

BAPA program. ILECO’s BAPA program remains to be one of the strongest in the

Philippines. Three more BAPAs during 2007 were added or a total of 402, serving 21,094

consumers. As one major service class, 7.87 million kWh amounting to Php 37.37 million was

sold to all the BAPAs. Considering the nature of their operation and the discounts they received,

average price of electricity to the BAPAs is about 32.2 centavos per kWh cheaper. While some

BAPAs had trouble in management and operations during the early part of their organization

which is mostly due to political bickering, most of the BAPAs had overcome the problem and

improved tremendously over the years. A number of well- managed BAPAs had maintained low

system losses, high collection efficiency, and high liquidity to excellent fiscal management.

21

Micro Finance Loan Program. The micro-finance loan program is one venture of the

Coop that had gathered popularity among members- consumers who are in direct need and

wanting cash due to its easy terms and affordable interest rate. The Board has a pending decision

to increase the budget and loanable amount in order to help the member- consumer better.

Community and Sports assistance program. As part of improving the community that

they are serving, through the respected Board of Directors, Ileco-1 continues to undertake several

social programs. They continue to provide a budget of Php 50,000 per district or Php 350,000 for

the community assistance program and Php 5,000 per municipality or Php 45,000 for the sports

assistance program. However small funds may be, they hope that it had done long way in helping

the community.

In the past ten years of operation, the NEA cited the cooperation (ILECO) for continued

and relentless pursuit of efficiency. One of the bases of such claim is the ratio of its consumers to

employees, which stands to be one of the best in the Philippines at 448:1 with 212 employees. To

be a lean and mean organization, they limited the number of their employees with continued

employee attrition. While the number of consumers had increased tremendously over the years,

the number of employees on the other hand went down. Thus, employees had to increase their

efficiency and upgrade their competencies in the discharge of their job to satisfy more

consumers.

B. Major Issues, Challenges and Innovations

Due to Typhoon Frank and the scarcity of power supply caused by grid- related capacity

deficiency, projections in the 2008 budget for 2008 did not materialized. They have only register

a meager growth in power purchase of 0.78% in 2008, as compared to 2007 or 144Gwh and

143Gwh, respectively. On the other hand power sales increased by 1.32% or a total of 127gwh.

22

The relatively bigger increase of power supply sales is attributed to the 0.46% reduction of

system loss from 11.44% in 2007 to 10.98% in 2008. To maximize benefits to

members/consumers, this year ILECOI have forged a covenant with the employees to bring

down the systems loss to at least 9.9%.

Compliance of the requirements of R.A. 9136 and other related issuances remains the

most important activities of their coop on year to year basis.

On the long term as they improve their facilities to meet the demands of the EPIRA,

ILECO shall reinforce these developments with best practices taken from several ECs and

companies.

The planned total automation of the system continues to take part in the planning

activities on a year-to-year basis. Year 2008, to improve their flexibility and systems reliability,

ILECO-I hope to energize Cabatuan and Oton substaitons. Also in the planning pipeline is the

installation of substation in San Joaquin and the increase of capacity of San Miguel substation.

As planned for their long term benefit, the Board had already initiated talks with

TRANSCO on the acquisition by the Coop of their assets from Sta. Barbara to San Joaquin.

What remain to be contentious issues is the right-of-way easement of this line. One area where

they set their eyes is the modernization of their reading facilities. They have always wanted to

eliminate errors and disputes as regards accuracy of meter readings. They believe that errors

should be eliminated once they limit human intervention to a minimum in the readings and

billings. In the next few months they shall address the issue with the new technology that they

are currently studying. As this scheme is being studied, a more sophisticated system is now being

tested in the office. This system is known as automatic meter reading (AMR) where reading of a

23

cluster of consumers are downloaded to a computer and brought to the office for billing. The

technology is very enticing but its limiting factor could be its price.

One of the improvements that they introduced in their collection campaign, with the

convenience of their member- consumers in mind, is the payment of power bills on malls. Any

member- consumer can pay their current power bills at the Bill Payment Counter of SM city, SM

Delgado, SM Jaro, Makro, and Save More. Bills payments are accepted on these outlets by

adding Php 5 regardless of the amount of the power bill. Once approved by the Board, the

scheme of payment of the power bills through for regular cell phone subscriber shall be

available at an additional cost of Php 2.50. There relentless campaign on the reduction of system

loss remains the sole activity that shall occupy their focus this year and for the years to come.

Reduction of systems loss shall mean benefit to the customer in the form of reduced rates.

VII.ORGANIZATONAL AND MANAGEMENT DIRECTIONS

A. Future Decisions

The planned total automation of the system continues to take part in the planning

activities on a year-to-year basis. Year 2008, to improve their flexibility and systems reliability,

Ileco-I hope to energize Cabatuan and Oton substaitons. Also in the planning pipeline is the

installation of substation in San Joaquin and the increase of capacity of San Miguel substation.

As planned for their long term benefit, the Board had already initiated talks with

TRANSCO on the acquisition by the Coop of their assets from Sta. Barbara to San Joaquin.

What remain to be contentious issues is the right-of-way easement of this line. One area where

they set their eyes is the modernization of their reading facilities. They have always wanted to

24

eliminate errors and disputes as regards accuracy of meter readings. They believe that errors

should be eliminated once they limit human intervention to a minimum in the readings and

billings. In the next few months they shall address the issue with the new technology that they

are currently studying. As this scheme is being studied, a more sophisticated system is now being

tested in the office. This system is known as automatic meter reading (AMR) where reading of a

cluster of consumers are downloaded to a computer and brought to the office for billing. The

technology is very enticing but its limiting factor could be its price.

B. Recommendations

Awareness of the importance of electricity in our lives had been a major issue nowadays.

Given the fact that electricity shortage is vastly affecting the people nationwide, and ILECO-I or

any companies similar to it should apply or at least lessen this problem. Due to these happenings,

many establishments are forced to raise the prices of their goods as a result of increase in capital

investment- usage of alternative machine to supply power that should be run by electricity.

ILECO-I should therefore further enhance their resources and distribute it accordingly to needing

homes. Many if not all is need of power supply because it is already part of our daily routine.

They should be able to manipulate the scarcity of resources and lessen the problem, because

dealing with angry customers are a lot harder.

Another is the continuous increase in electricity cost. ILECO-I should be concentrating

more on improving the service that they offer while reducing the cost that the consumers will

incur.

25

Once approved by the Board, the scheme of payment of the power bills through for

regular cell phone subscriber shall be available at an additional cost of Php 2.50. There relentless

campaign on the reduction of system loss remains the sole activity that shall occupy their focus

this year and for the years to come. Reduction of systems loss shall mean benefit to the customer

in the form of reduced rates.

26

VIII. REFERENCES/BIBLIOGRAPHY

Journal:

ILECO 1 2008 Annual Report

Sites:

http://www.solhaam.org/articles/clm3.html

http://www.leadershiptheories.org/types-of-leadership.html

http://www.mariosalexandrou.com/free-job-descriptions/technical-manager.asp

http://www.leadershiptheories.org/types-of-leadership.html

http://en.wikipedia.org/wiki/Control_(management)

http://en.wikipedia.org/wiki/Technical_Manager

http://www.bls.gov/oco/ocos010.htm

Personal Interview:

Lilibeth Gegrimal. September 20, 2010

Reah Geguera. September 20, 2010

27