Management Aspect
STEPHEN... Introduction
Management in all business and business and organizational activities is the act of coordinating the efforts of people through planning, organizing, staffing, leading or directing, and controlling to accomplish desired goals and objectives using objectives using available resources efficiently and effectively. Management is also defined as involving the manipulation of the human capital of an enterprise to contribute to the success of the enterprise.
Management aspect comprises the company’s vision and
mission statement, values and objectives, the basic considerations in forming the business, the form of business organization undertaken by the company, the people forming the organization, its officers and key employees, their qualifications, functions, compensation and other benefits and the organizational structure showing the flow of authority. Also, it includes the project schedule, from the preparatory stage up to the start of operations, and the company policies to be strictly followed by each and every individual in the organization.
Management plays a vital role in running a business. It includes proper use of resources, distinct strategies, rational 1
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decisions and operational policies to easily achieve success.
Business Name
The business name is very important in getting the attention of customers. Thus, it should be something different, attracting and unique. As a result, the name of the business will be “SANTOOL PARTNERSHIP”. Business Logo
The logo portrays the main source of the product offered by the business, which is the santol. The gear represents the company being a catalyst in bringing unique santol products closer to consumers and let them experience the wonders that this fruit brings.
The wings at the end of the company’s name represent the company’s intention of flying high and aiming for excellence
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through discovering ways to innovate and soon bring them a variety of santol products essential to everyday living.
The dominant white color of the gear, wings and even the company name, shows the purity, cleanliness and safety of the company’s products, also to emphasize the main ingredient,
santol.
DYRAH... VISION
“Santool Partnership envisions being the top provider of
an organic treatment for body aches and pain.”
MISSION
Santool Partnership is directed to be one of the leading providers of an all-natural pain reliever and satisfying the needs of consumers seeking for organic treatments while ensuring the stakeholders of profitable growth and at the same time rearing the community where the company operates. VALUES
Company values are essential to the overall success of the business. These are the basic principles that will be guiding our actions and will define standards and acceptable behaviour. 3
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1. Integrity: Our actions will evidence trust, credibility,
uncompromising integrity, and dignity of the individual. 2. Excellence: Santool Partnership is driven by the passion to
provide the best quality and unique santol products that will surely benefit each and every consumer. 3. Learning: We believe that indulging in a continuous
learning process would improve the business and the expertise of the people in it. Company Objectives
An organization was created in the first place to fulfill a certain objective or attain a particular goal. A business without such will be just like a wind with no direction. These objectives will become a concrete manifestation the mission of the business in existing.
Santool Partnership aims to achieve the following objectives:
To deliver a healthy, safe, quality and affordable herbal medicinal oil to customers
To offer satisfactory work environment to employees
To provide friendly, approachable, and well-trained employees who offers quality service
To identify more strategies and techniques to attain continuous improvement and quality 4
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To line up manager’s objectives
with the company’s goals
and their involvement for its achievements
To gain and hold the respect and loyalty of the customers
To empower employees to attain betterment
To strive for employee and customer satisfaction
To maintain our commitment to innovation
To give back by
fulfilling Corporate Social
Responsibilities
REX... Form of Business Organization
Santool Partnership will adapt a general partnership form of business. A partnership is an organization where two or more persons bind themselves to contribute money, property or industry to a common fund with the intention of dividing the profits among themselves. General partnership is composed of general partners or a combination of general and industrial partners. They are personally liable for the partnership’s debt after exhaustion of
its assets. They assume unlimited liability.
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Profits and losses sharing must be divided to all the partners in accordance with the proportion of their contribution. Commitment and cooperation from every partner is necessary for the success of operation of the business. More works done by a partner is compensated upon agreement by the partners such as an addition to the Monthly Salary in the profits. The partners may neither withdraw cash nor other assets from the business without the express written permission of the other partners, also, no partner is allowed to use the funds or property of the partnership on his or her own benefit. Advantages of partnership as an organization: 1. Easy formation- mere agreement or mutual understanding by the partners may organize a partnership. 2. Joint resources- a partnership provides an opportunity to pool the abilities, experiences, and resources of two or more persons. 3. Less government supervision- generally, partnerships receive less government regulation than corporations do. 4. Utilization of strengths of individuals- as compared to a sole proprietorship, a partnership has more individuals contributing to the operations. 5. Great borrowing capacity- each partner may avail individual credit than that of a sole proprietorship
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6. Easy to manage- all the partners’ skills and decisions can be combined. Capital Contribution
Indicated below are the names of the partners and their respective capital contributions. NAME
Amount Contributed
AB-AB, GRIZLE JETH
Php
1,750,000
BRISTOL, PRUDYLYN
Php
1,750,000
CALAYAAN, CLAIRE ANNE
Php
1,750,000
CUBANGBANG, KRISTINE JOY
Php
1,750,000
DULAY, KAREN MAE
Php
1,750,000
PAJARILLO, PRINCESS
Php
1,750,000
SISON, REYMINO
Php
1,750,000
Total
Php 12,250,000
Registration and Licenses
The following protocols must be accomplished for the business to legally operate:
Register the business name at the Department of Trade and Industry (DTI). The brand name is “Santoil” and the business name is “Santool Partnership”.
Registration of the partnership at the Securities and Exchange Commission (SEC)
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File the complete documents including Articles of Partnership with the SEC, upon payment of the requisite filing fees.
Registration at the Mayor’s Office
Required: 1. Location or the Vicinity Map of the business establishment 2. Barangay Clearance 3. Articles of Partnership 4. Community tax Certificate 5. Initial Subsequent list of employees
Sanitary permit is also required to make sure that the site of the business is safe and clean
Registration at the Bureau of Internal Revenue (BIR) Required: 1. Photocopy of SEC Registration 2. Mayor’s Permit
Registration at Social Security System (SSS) Required: 1. Photocopy of Articles of Partnership 2. Employees’ Data
Registration at Philippine Health Insurance Corp. (PhilHealth)
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Figure 3.1 Organizational Chart
Key Personnel
1. General Manager
The company would be giving this responsibility to one of the partners and a salary in addition to the partner’s
share in profits. The general manager would keep an eye on the activities and the entire operations of the business, and would make very important decisions that will maximize the value of the business. The general manager would also devise strategies for the business to lay a very good foundation in this industry, and policies for congruency within the organization.
Qualifications:
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One of the original partners appointed by the majority of the partners
With a wide knowledge in different aspects of management
One who possesses good communication skills and knows how to handle pressure
Compensation:
Monthly salary will be P8, 360 and will also be receiving a 13th month pay based on the monthly salary.
2. Factory Manager
The factory manager will be the person in charge with the over-all operation in the factory. He should be responsible for the purchase of raw materials and ensures that all sales orders and deliveries have been done.
Qualifications:
One of the original partners appointed by the majority of the partners
With a wide knowledge in different aspects of management
One who possesses good communication skills and knows how to handle pressure
Compensation: 10
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Monthly salary will be P7, 480 and will also be receiving a 13th month pay based on the monthly salary.
3. Store Manager
The store manager will be the one responsible in the operations of the company in its retail store. He will be the one in charge of ordering products from the factory and will see to it that enough products are still available in the store.
Qualifications:
One of the original partners appointed by the majority of the partners
With a wide knowledge in different aspects of management
One who possesses good communication skills and knows how to handle pressure
Compensation:
Monthly salary will be P7, 480 and will also be receiving a 13th month pay based on the monthly salary.
4. Bookkeeper The bookkeeper checks and analyzes the transactions of the business as well as the financial status and accuracy the financial statements. 11
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Qualifications:
Male or female
Must be an Accounting graduate
Knows how to use Microsoft Office applications, especially Excel
Have at least a year of working experience.
Compensation:
Monthly salary will be P6, 600 and will also be receiving a 13th month pay based on the monthly salary.
5. Machine Operators
The machine operators are responsible for operating the machines assigned to them and transporting the products to another room or area for the next process. They should also ensure that the machines under their care are always in good condition, and are maintained according to proper sanitation standards. They have to see to it that the products have undergone the correct process and are properly treated. Lastly, always maintains cleanliness in their respective working areas.
Qualifications:
Male/ Female
Of good moral character 12
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At least high school graduate
Willing to undergo trainings
Hardworking and flexible
Compensation:
Monthly salary will be P6, 600 and they will also be receiving a 13th month pay based on their monthly salary.
6. Manual Laborers
For those assigned in the slicing and separating process:
They are responsible for slicing the santol and separating the seed from the inner peal. They should demonstrate a high standard of personal hygiene and maintains cleanliness in their working area.
For those assigned in the packaging area:
They would pack the finished products and store them neatly at the storage area, carry the products to the transporting vehicle for delivery at the retail store and perform other tasks that may be assigned to them.
Qualifications: 13
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Male/ Female
Of good moral character
At least high school graduate
Hardworking, flexible and willing to do overtime.
Compensation:
Monthly salary will be P6, 600 and they will also be receiving a 13th month pay based on their monthly salary.
7. Store Cashier
The cashier would be receiving payment by cash and simultaneously gives receipt and change to customers. He is also responsible for cash register operations and processing of sales, and submits the daily cash collections to the store manager. He also assists the customers and maintains the cleanliness in the area.
Qualifications:
Male/ Female
At least high school graduate.
Computer literate.
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With pleasing personality and has good communication skills.
Honest and trustworthy.
Has experience working as a cashier and can do multitasking.
Compensation:
Monthly salary will be P6, 600 and they will also be receiving a 13th month pay based on their monthly salary.
8. Sales clerk
The sales clerk is responsible for the inventory of products in the retail store, displays the products properly, and ensures that products received from the factory are all without damage. He also assists the customers and maintains the cleanliness in the area.
Qualifications:
Male/ Female
At least high school graduate.
Hardworking and flexible.
Of good moral character
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Have good communication skills.
Compensation:
Monthly salary will be P6, 600 and they will also be receiving a 13th month pay based on their monthly salary.
REYNALD.... Company Policies and Procedures
Company policies outline acceptable behaviors and employee expectations, while procedures describe and define process flows and company objectives. Well written policies & procedures allow employees to understand their roles and responsibilities within predefined limits. Basically, policies & procedures allow management to guide operations without constant management intervention. Management Policies Organizational Management and Governance
The management should be responsible in setting organizational policies and procedures, monitoring compliance with organizational policies according to established
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performance standards and making decisions where changes to existing policy position are projected to be changed. Personnel Policies Hiring and Selection Policy
It is the partners who will personally evaluate and hire skilled and competent personnel according to the qualifications enumerated for each position. Generally, the company requires the aspiring applicant to submit the following:
Curriculum Vitae/Resume with recent 2x2 picture
Transcript of records
Police and NBI clearance
SSS number
Application Letter
Birth Certificate
Health certificate
Certificate from seminars and trainings attended (if available) Name of qualified applicants based on their documents
submitted will be informed through phone calls for a preliminary review. Final interview would immediately follow for applicants who passed the preliminary interview and names of selected 17
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applicants that will undergo training will be posted after the final assessment. Uniforms
The Company maintains a business casual working environment. All employees should wear their uniforms provided by the company which includes a white t-shirt with the company’s logo and slacks. That will make them comfortable and
clean. Training and Orientation
The reason in giving training to employees is to assist in improving their work as well as heightening the morale of the personnel and minimizing supervision required. Newly hired personnel will be oriented regarding their respective function in the company as they start their designated work.
Working Conditions
To improve the work environment, work schedule and delegation of tasks, each worker must address his or her concerns. Work is never enjoyable especially if it is against one’s will. The manager can be easily approached and is
available for any concern. Attendance
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Employees are expected to report to work as scheduled and on time. If it is impossible to report for work as scheduled, employees must call the manager before their starting time. If the absence is to continue beyond the first day, the employee must notify the manager on a daily basis unless otherwise arranged. Calling in is the responsibility of every employee who is absent. Absence for three consecutive work days without notifying the manager is considered a voluntary termination. Leave of Absence
The request for leave will be reviewed based on the reason for the request, previous attendance record, previous leave requests and the impact the absence will have on the Company. Compensation
Employees are paid on the 15th and 30th day of each month based on the specific ranges designated for particular types and levels of jobs. Thirteenth month pay
All employees are granted 1/12 of their total wages within a calendar year before December 24. Sick leave
All employees are allowed to have an eight-day sick leave in a year as provided in the Labor Code of the Philippines. Overtime Work
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Overtime Work is work rendered beyond 8 hours.
Every
hour worked in excess of 8 hours earns an additional pay of P25%.
The rate is 30% if done on a rest day or holiday.
Right to holiday pay
Holiday Pay refers to pay received by an employee on the occasion of a regular holiday or special day.
In the case
of regular holiday, the employee is paid even if she did not work.
She receives double her pay if she works on a regular
holiday.
In the case of a special day (see below), the
employee is entitled to 130% of her usual pay.
Holidays and special non working days:
January 1 - New Year's Day
March 28 - Maundy Thursday
March 29 - Good Friday
April 9 - Araw ng Kagitingan
May 1 - Labor Day
June 12 - Independence Day
August 26 - National Heroes Day
November 30 - Bonifacio Day
December 25 - Christmas Day
December 30 - Rizal Day
March 30 - Holy Saturday
August 8 – Ei’dl Fitr 20
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August 21 - Ninoy Aquino Day
November 1 - All Saints' Day
November 2 , December 24 - Additional non-working days
December 31 - Last day of the year
Maternity leave
A female member of the Social Security System (SSS) who has paid at least 3 monthly contributions in the twelve-month period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to 100% of her average daily salary. The benefit is for 60 days for normal delivery and 78 days for caesarian delivery for the first four deliveries and miscarriages. Paternity leave
The law provides for paternity leave of 7 days with full pay to all married male employees in the private and public sectors. It is only available for the first four (4) deliveries of the legitimate spouse with whom the employee is cohabiting. Trainings and Seminars
This is intended to improve skills of the employees in their present job and to be updated with the latest and effective management and cooking styles. Premium Pay: 21
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Table 3.1: Premium Payment Schedule BASIS ON THE RATE OF PAY ON WORKED PERFORMED PERFORMED ON
DAILY RATE
PREMIUM FOR WORK IN EXCESS OF 8 HOURS
Regular working days
100%
125%
Rest days
130%
169%
Special days
130%
169%
150%
195%
200%
260%
260%
338%
Rest day which is also a special day Regular holiday Regular holiday which is also a rest day
Retirement Benefits
An employee upon reaching the age of sixty or more but not beyond 65 who served the company for at least 10 years are entitled retirement benefits. Termination Policy
Here are the following grounds before the final termination of an employee. 1. Reprimand for first offense 2. Suspension of a month for 2nd offense 3. Dismissal for 3rd offense Grounds for Termination 1. Carelessness of duties and responsibilities. 22
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2. Complaints of customers regarding misconduct of employees. 3. Stopping work before time or quitting time without prior notice. Safety
The Company is sincerely interested in the safety and well-being of the employees. If, in spite of all the efforts to ensure safe working conditions, an employee has an accident or becomes ill on the job, it should be reported to the manager immediately. Prompt medical attention should be made available. Sanitation
Cleanliness, orderliness and maintenance must be strictly sustained regarding the workplace. It is firmly advised that all employees are in charge of maintaining the sanitation of all area and machineries and equipments. Property, Plant and Equipment Policies
The cost of property, plant and equipment is generally the purchase cost together with any incidental acquisition expenses. Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
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Depreciation is calculated on a straight-line basis over the expected useful economic lives of the assets concerned.
GANTT GHART
It shows the activities to be done, with their respective time span, are properly planned for the completion and actual implementation of the project. It is a simple but important device that the management can use to figure out things yet to be completed. It will serve as a guide in monitoring the implementation of every step for project completion.
It should be fully completed and published in a period of seven months as shown below based on the gathered information by the proponents.
2013
ACTIVITY ACTIVITY
JUNE
JULY
2014
AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY
Conduct Feasibility Study Partnership Formation Securing of Permits Land Acquisition Building Construction Purchasing of equipments and machineries Recruitment, Selection, Hiring and Training of Personnel Installation and test runs of machineries Start of Operations
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Figure 2.8 GANTT CHART
DESCRIPTION OF ACTIVITIES
1) Conduct Feasibility
This is with regards to the general project planning to come up with a feasible and realistic project. This will cover a period of two (2) months to complete from June to July 2013.
2) Partnership Formation
It will cover a period of one (1) month to be able to form a partnership and accumulate funds needed in the production.
3) Securing of Permits
Activities included here are the registration at the SEC, registration of the business location at the DTI, Mayor’s office to acquire permit or license to engage into
a business, and BIR to get TIN number for tax purposes. It also includes the registration at the Social Security System for the benefits of the employees and registration at the Philippine Health Insurance Corporation. All of these are for the legalization of the business as the law states, for a period of one (1) month.
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4) Land Acquisition
It will cover the whole month of August 2013 for this transaction. Any necessary transactions such as Transfer of title are also included in this part of the business activity.
5) Building Construction
Three months are allotted in this activity the months of September to November will be the duration of the construction according to the flow of operation. Construction will be 24/7 to complete the construction within three months.
6) Purchasing of equipments and machineries
Ordering all needed equipments from the supplier until the arrival to the factory including the installation of all the equipment. Payments of price, taxes and other fees necessary are also involved. Other equipment needed shall also be purchased. It will cover the month of November.
7) Recruitment
Activities included are enlisting, hiring and training of personnel needed in the production and operation of the 26
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business. And will take the month of December before the start of the operation.
8) Installation and test runs of machines and equipments
To ensure that the machineries and equipments bought are in perfect condition, test runs will be done a month before the start of operations.
9) Normal Operation
The start of the operations of the business will be on January 2014.
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