Chapter 4

Management Plan
This chapter will be about the details of the organization starting with the type
of ownership, the organizational structure, different positions and its duties,
responsibilities, and benefits, organization policies, and compliance with the
government requirements. The focus would be on how the organization will operate
and the different aspects of it.

Form of Ownership
Partnership is a legal form of business operation that is operated by two or
more individuals who share management and profits. The government recognizes
several types of partnerships. The two most common are general and limited
partnerships and Luzon On the GO (LOGO) will become a general partnership.
Since Luzon On the GO (LOGO) is a small type of business, being in a
partnership is the best option because it would require less start-up costs and it
would be easier to put up and operate. Having a partnership as a form of ownership
can also mean that there would be a more hands-on approach in terms of managing
and supervising the business.
A partnership starts with an agreement or contract between its parties. In
order to be registered in the Securities and Exchange Commission (SEC) in the
Philippines, a written contract or Articles of Partnership is one of the requirements.

The Articles of Partnership will state all the agreements between parties in terms of
liability, management, and sharing of the profit. Aside from that, the SEC requires to
submit the Name Verification Slip with the reservation of the partnership name,
Registration Data Sheet, Affidavit of a partner undertaking to change partnership
name and Certificate of Bank Deposit. Also, the name of the partnership, principal
office address, telephone number, name, citizenship, address, birthday, and TIN of
the partners, capital contribution of the partners, and purpose of the partnership, are
information that needs to be provided.

Organizational Chart
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Figure 19. Organizational Structure for Luzon On the GO (LOGO)

The organization chart for Luzon On the GO (LOGO) is a functional

organizational chart. A functional organizational chart is based on the specialty, or
functional area within an organization. The General Manager, located on the top, is

the superior position in this structure; under the supervision of the General Manager
is the Admin, Reservation, Marketing and an Information Technology expert.
Since the business is through the internet, it has a small number of
employees; the suitable structure for the business is functional organizational chart.
This kind of organization chart is ideal for Luzon On the GO (LOGO) since it is a
small type of business.
In the functional management, there is very clear series of command in this
structure; it has only one superior position, therefore all employees know whose
decisions they are allowed to make. Employees has fixed job in this structure,
therefore they can concentrate on their own work. With this structure, each individual
enhances their productivity because they are working with their own expertise or in
their respective line of work with efficiency and with a high level of speed.

Manpower Requirement
Luzon On the GO (LOGO) is a small type of company that is centered
through online services. In line with this, a total of five personnel are needed for the
business to operate. The different positions according to their function are the
General Manager, Admin, Reservations, Information Technology, and Marketing.
Since the small business will primarily be online and through mobile, there is
no need for a great number of personnel to keep the operations going. One person
to oversee and supervise the activities and operations is enough, as well as one for

each of the remaining four other main tasks within the company. Five is enough
people to keep the website running and all other aspects of the company is
functioning.

Roles and Responsibilities

The following will be the duties and responsibilities of the different positions of
the business:
General Manager. The General Manager is the one who oversees all the
operations and functions in the business. He/she needs to supervise and
communicate with all the departments in order to make sure that every employees
job is done efficiently and correctly. The General Manager needs to have a strong
sense of leadership, sense of responsibility, interpersonal skills, and able to motivate
and inspire the team.
Admin. Admin is assigned in accounting for the finances and human resource
of the company. He/she will be the one keeping and auditing the financial records of
the business. Also, he/she deals with hiring and selecting personnel and tending to
the needs of the employees of the company. He/she must know how to handle and
audit finances, has experience in clerical work, is computer literate, is organized and
concise.
Reservation. He/she will be in charge in overseeing the reserving of seats of
the customers who booked through the website or on the application. And he/she will

direct it to the admin/accounting for the payments, types of payment and record.
They are also the ones who will handle customer inquiries. He/she must be detail
oriented, has interpersonal skills, and has past experience in reservations.
Marketing: He/she is in charge of advertisements (i.e. visual, radio, print ads,
etc.), as well as conceptualizing all the promos that the company will offer. And
he/she is also in charge of attending all the meetings and events to promote the
company. He/ she must have good interpersonal communication skills, is skilled in
photoshop and video-making, creative, and has strong presentation skills.
Information Technology: The Information Technology is in charge of the
programming of the website and the android/iOS application. He/she will be also
responsible for the maintenance of servers, website, android/iOS application. He/she
needs to make sure that all the softwares/programs will work properly. He/she must
be a graduate of an IT Course, is good at software and programming, and detail
oriented.

Salaries and Benefits

Table1. Table of Salaries and Benefits for the different positions
Positions

Salaries

Benefits

General Manager

30,000

Health Care

Paid Holidays

Vacation Leaves

Maternity Leaves
Administration

12,000
Overtime pay work

Reservation Agent

15,000
13TH Month Pay

Christmas Bonus

(Government Benefits)
Marketing

(12,000)
SSS/GSIS

PAG-IBIG

PHILHEALTH

Home Development
Mutual Fund
Salaries

The salary of the General Manager is in the range of 30,000 to 25,000 per
month and he/she is the one who will manage the overall happenings in our
company. The salary of Administration will range from 25,000 to 20,000, he/she
will be the one who run the activities within in our company and responsible for the
management of budgets, property facilities and record. Reservation Agents salary
will range from 15,000 to 10,000 and he/she is responsible in bus online booking
and manage the reservations of the passengers. The salary of Marketing and
Information Technology is same as the Reservation Agent. Marketing is responsible
for creating promotional strategies in our business while Information Technology is
manage for technical problems in our website and online booking.

Government Benefits
In addition to salary, employees in our company will receive benefits and
services. The benefits will vary depending on the employees position and the
government benefits listed in the table is just mandatory benefits for employees in
the Philippines. These are Social Security System, PHILHEALTH, and GSIS. Our
employees will receive these benefits; Social Security System was made by
Philippine Government and all employees from private companies are required to
have this. While PHILHEALTH is national health insurance program and their goal is
to provide healthcare for the employees. The Government Service Insurance
System mandated to provide a compulsory life insurance, optional life insurance,
retirement benefits and work related contingencies for employees. Lastly, Home

Development and Mutual Fund all employers are required to contribute on this
service, it is low interest housing and land acquisition loans payable up to 30 years.

Company Initial Benefits

Theses are the benefits that our employees will receive; Overtime pay work
those employees who will work over 8 hours will receive an extra payment.
Attendance Bonus will provide to those employees who doesnt have any absences.
Christmas Bonus and 13 month pay is happening and given every December these
benefits is considered as a Christmas gift to our employees. Paid Holidays and
Vacation leaves, it is five mandated days leave per year and we will give our
employees an additional paid holidays and vacation leaves. We also provide a
Health Care is a comprehensive health care coverage for employees and Maternity
Leave for our women employee for their safeties and give them a financial benefit.
Lastly we will provide a meal subsidy for our employees every lunch in order for
them to concentrate in their work.

OTHER LEAVES
Sick leave: Twelve (12) days per year for the first two years of service. With
additional 1 sick leave every year starting on 2nd year of service maximum total sick
leave is 15days. All unused leave days are convertible to cash in December of each
year.

Paternity leave: All legally married male employees are eligible for working days up
to four (4) child birth or miscarriage of legitimate spouse to be availed within sixty
(60) days from deliver / miscarriage.
Bereavement: Three (3) days in the event of death of an immediate family
member which includes the employees children, parents, grandparents, brother,
sister, spouse, and parents-in-law.
Solo Parents leave: Seven (7) working days leave for solo parents certified by
DSWD.
Calamity leave: Two (2) days leave for employees who are affected by flood,
fire and typhoon (must be supported by a government proclamation)
Magna Carta for Women: Sixty (60) calendar days leave. It is given to all female
employees who underwent surgery caused by gynecological disorders.

Organizational policy
The following are the policies within the organization:
Employee Attendance
Regular attendance is an expectation of performance for all Luzon On the
GO(LOGO) employees. The Company expects all employees to conduct themselves
in a professional manner during their employment. This includes practicing good
attendance habits. All employees should regard coming to work on time, working
their shift as scheduled, and leaving at the scheduled time as essential functions of
their jobs. Under some circumstances, absence or tardiness on your part may be

excused, but only if you give proper notice of such a problem before the start of your
shift. The Company needs advance notice of attendance problems so that other
arrangements can be made to cover your absence, if necessary. They must have
approval from their manager in advance in any requested schedule changes. To
establish uniform guidelines that will ensure a consistent and fair approach to solving
attendance problems.
Proper Decorum
Honesty and trustworthiness are expected on all matters of work. Trust is
expected with respect to privacy of papers, documents and belongings.
Employees are expected to respect expectations of confidentiality of information
received. Luzon On the GO (LOGO) requires all employees to maintain
confidentiality to all information including financial, current or discharged clients
and employees. They must be aware what is appropriate behavior regarding what
they can say to others outside the company about what happening inside. It is
usually followed by a formal legal agreement delineating the policy and signed by
the employee.
Employees are expected to comply with, to best of ones knowledge and
other applicable companys policy. Any intentional lying, falsification or other
communication using any communication will be considered dishonest behavior.
Behaviors that will be considered as violating this expectation of honesty may
result in discipline and including termination.

Luzon on the Go employees must provide proper documentation business

processes. Employees must ensure that all transaction details relevant for
accounting purposes are fully and correctly captured.
Policies in Booking
Luzon on the Go online bus tickets is not refundable. Passengers must travel
on the exact dates and locations purchased. Ticket is valid only for the date and time
stated on the ticket. Reservations are not-transferable; they cannot be used for an
earlier or later bus. Any changes to a ticket are subject to ticket change policies and
may require an additional fee per ticket per change. Luzon on the Go will not be
responsible for the delays caused by road conditions, weather and other conditions
beyond the carrier control.

Government Requirements
The following are the requirements in putting up a business in Makati City,
Philippines:
Table 2. Requirements in setting up a business
Time to
Procedure

Associated Cost
Complete
1 day

PHP40.00

1 day

No Cost

1 day

PHP500.00

3 days

PHP 2,665.00

1 day

PHP500.00

1 day
and 1 day

PHP650.00
PHP200.00

1. Verify and reserve the company name

with the Securities and Exchange
Commission (SEC)
2. Deposit paid-up capital in the Authorized
Agent Bank (AAB) and obtain bank
certificate of deposit
3. Notarize articles of partnership and
treasurer's affidavit at the notary
4. Register the company with the SEC and
receive pre-registered Taxpayer
Identification Number (TIN)
5. After issuance of the SEC certificate of
incorporation, pay the annual community
tax

and

obtain

the

community

tax

certificate (CTC) from the City Treasurer's

Office (CTO)
6. Obtain barangay clearance
7. Notarize the business permit

locational clearance application forms at

the notary
8. Obtain the locational clearance from the

4 days

PHP 2,700.00

Administration Division (UDD-ZAD)

9. Receive inspection for the locational

1 day

No cost

clearance from the UDD-ZAD

10. Obtain the business permit to operate

4 day

PHP 14,304.00

from the Business Permits Office (BPO)

11. Present the official receipt at the Makati

1 day

No Cost

1 day

PHP250.00

2 days

PHP15.00

Urban Development DepartmentZoning

Health

Department

(MHD)

for

issuance of the sanitary permit

12. Buy special books of account

the
at

bookstore
13. Apply for Certificate of Registration (COR)
and TIN at the Bureau of Internal

Revenue (BIR)
14. Pay the registration fee and documentary 1 day

PHP 4,670.00

stamp taxes (DST) at the AAB

15. Obtain the authority to print receipts and

1 day

No Cost

invoices from the BIR

16. Print receipts and invoices at the print

7 days

PHP 3,500.00

shops
17. Have books of accounts and Printers 1 day

No Cost

Certificate of Delivery (PCD) stamped by

the BIR
18. Register with the Social Security System

2 days

No Cost

(SSS)
19. Register

1 day

No Cost

with

the

Philippine

Insurance Company (PhilHealth)

Health

Above are the requirements, estimated time, and cost in putting up a

business in Makati City. Since Luzon On the GO (LOGO) will be a partnership, it will
start with the registration with the Securities and Exchange Commission (SEC), so
that it may be recognized as such and for paying the rightful tax. The law requires
the company to deposit a paid-up capital amounting to at least 6.25% of the
authorized capital stock of the corporation. This paid-up capital must not be less
than PHP5, 000.00. That is why the second step is to deposit a paid-up capital to the
Authorized Agent Bank and get the bank certificate of deposit.
The barangay clearance is necessary because it certifies that the business
complies with the requirements of the local barangay. Registering the Bureau of
Internal Revenue (BIR) for the business to pay the rightful taxes and it is essential to
acquire other permits and requirements.