M a n a g e m e n t A s p e c t | 53

General Project Planning

Planning is process that fully opens the door to the idea of pursuing the

implementation of a project. This usually involves considering the resources that

will be needed during implementation and its availability. Thorough planning

should be done to assure success in the new business venture. A period of 1

month will be allocated for this activity.

Sourcing of Funds

Regardless of a very thorough plan made by the prospective

implementers, these will still not assure successful realization of the project if the

company do not have enough initial capital to cover the expenses of the activities

necessary in the organization of the business. Sourcing of funds may be

necessary to obtain sufficient amount to cover cost during pre-operating and

operating period of the business. A period of 1 month will also be allocated for

this activity.

Securing Licenses and Permits

It is important for a business enterprise to comply with the statutory

requirements set by the government to legally exist. Such requirements needed

include business registration, permits and licenses from different regulatory

bodies. Two weeks will be allocated to fully comply with all the requirements.

Lease Negotiation

Since the business is engaged in manufacturing its own product, wide

production area is expected to be utilized. The company resorted in renting a

land for the production as well as administrative area of the business. Two weeks
 M a n a g e m e n t A s p e c t | 54

will be allocated for the canvassing, as well as negotiating the lease of the

chosen area.

Leasehold Improvement

Efficient production flow and business activities may not be achieved

without an environment conducive in performing the activities of the firm. Upon

leasing an area, it is expected that certain improvements be done to satisfy the

standards set by the firm as well as to comply with the regulations of the bodies

that govern the organization of the business venture. One month will be allocated

for this activity.

Canvassing and Acquiring of Office Equipment, Kitchen Utensils and Equipments

Business and production process may not be done in the absence of

supplies and equipment both for office and production use. As a business that is

still starting, implementers should canvas for these suppliers of the needed

supplies and equipment that is of high quality but at lower prices. Two weeks will

be allocated for this activity.

Canvassing and Acquiring of Furniture and Fixtures

Furnitures and fixtures are movable properties of the firm that do not really

have a permanent connection to the structure of the building. Firms need to

canvas for a supplier of these furnitures& fixtures with good quality but minimal

cost. Canvassing, as well as the acquisition of all needed furnitures will be done

for a period of two weeks.

 M a n a g e m e n t A s p e c t | 55

Canvassing for Sources of Raw Materials

In designing a product, the availability of the raw materials needed in its

realization must be considered. Number of suppliers must be identified to provide

the management with options in buying good quality raw materials but at lower

prices. It will take one week to identify potential suppliers of the raw materials

needed by the firm.

Recruitment, Hiring and Orientation of Workers

Labor or manpower is one of the resources needed in every business

venture and their competence in performing different business activities must be

considered. Applicants should be screened well to hire only the best people fit for

the job. Prior to the full operation of the business, personnel should all be

oriented with pertinent information and processes involving the firm to prevent

mishaps. From the recruitment process to the orientation of the workers, a period

of one month is allocated.

Acquisition of Raw Materials

With the list of potential suppliers of the various raw materials needed in

the production, management will choose who among them. Two weeks will be

allocated in processing the purchasing.

Promotions and Sampling

In starting a new venture, it is a challenge for the management to

introduce the venture, as well as the product, to the consumers. Firms usually

adapt different advertising schemes to gain publicity, at the same time, market

the product to the consumers. This activity will be done for three weeks
 M a n a g e m e n t A s p e c t | 56

Normal Operations

Full operation of the business can now resume upon accomplishing the

activities enumerated in the project timeline.

Table 14
Gantt chart
MONTHS
1 2 3 4 5
WEEKS
ACTIVITIES 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
General Projected
Planning
Sourcing of Funds
Securing
Licenses and
Permits
Lease Negotiation
Leasehold
Improvement
Canvassing and
Acquiring of
Office equipment,
Kitchen Utensils
and Equipment
Canvassing and
Acquiring of
Furniture and
Fixtures
Canvassing for
Sources of
Materials
Recruitment ,
Hiring and
Orientation of
Workers
Acquisition of
Raw Materials
Promotions and
Sampling
Normal
Operations
 M a n a g e m e n t A s p e c t | 57

MANAGEMENT DURING THE OPERATING PERIOD

Accomplishing project timeline during pre-operating period will be the link

for the management in leading and successfully implementing the business

activities of the firm during operating period. Duties should be fairly separated

and responsibilities should be made clear to the people involved in the

operations. Resources should be made available for use for easy access during

the start of production period.

Form of Business Organization

A sole proprietorship is recommended as the form of business

organization with this proposed project. With this, at least five incorporators will

be needed and be the one who manages the business. They will share in profits

and losses generated through the firm’s operation.

Organizational Structure

An organizational chart shows the internal structure of an organization. It

is a visual representation of how a firm intends authority, responsibility, and

information to flow within its organizational structure.

This is important in any organization in order to identify the level of

authority. It provides guidance and clarity to employees at all levels of a

company. Without an organizational structure, employees may find it difficult to

know who they will report to in different situations.

Figure 34 shows the suggested organizational structure made by the

proponents of the study.

 M a n a g e m e n t A s p e c t | 58

OWNER / MANAGER

PRODUCTION SALES AGENT

BOOKKEEPER
WORKER

CASHIER DELIVERY MAN

Figure 34
Organizational Structure

Job Titles and Description

Manpower is important in any business. It is important in every

organization to have the best manpower as much as possible. In order to achieve

this, management should set standards that would help in determining the best

person suited for a particular job. Description of the various positions in the entity

is shown below.

Owner

 One who manages the business itself

 The main company decision depends on him/her

 Plans for the budget for every department, Monthly, Quarterly and

yearly

 Manages the operation or production of the business

 Make future plans for the production

 Organize and give task to the people in production

 Direct people what should be done in a given time

 M a n a g e m e n t A s p e c t | 59

Sales Agent

 Takes In-charge of the advertisement and promotion of the company

 Takes In-charge on how they can make the company’s product known

in the market

 Manages the sales part of the business

 Negotiates to clients ordering the company’s product

 Monitors the sales of the company

Production Worker

 Does the brewing, fermentation and conversion process of the product

 Operates the machine and equipment in the production process

 Prepares the production area every day to start the operation

Bookkeeper

 Accounts and pays all the bills and accounts payable of the company

 Accounts the money going in and out of the company

 Reports to the owner the Status of the company

 Helps the owner in decision making

 Report to the owner the revenues and expenses of the company

 Report to the owner the income of the company monthly, quarterly and

yearly

 Monitors the costs of the company.

Cashier

 Receives payments from customers

 Holds the money of the company and reports to the bookkeeper

 M a n a g e m e n t A s p e c t | 60

 Collects the accounts receivable from the debtors and clients

Delivery Man

 Does the packaging of the finish product

 Delivers the product to the clients or customers

Job Specifications

These are the specific qualities and attributes that an individual must have

in order to qualify for the job. This is done in order to determine whether they are

capable of performing their duties well.

Production Worker

 Atleast High School Graduate

 Willing to work and to be trained

 Can do multi-tasking

 Can work with less supervision

 Male or Female

 At least 18 years of age

 Knows how to make packaging sachets

Bookkeeper

 A graduate of Bachelor of Science in Accountancy or Management

Accounting or NC II holder

 Know Basic accounting (Journal and Ledger)

 Computer literate

 Knowledgeable in Microsoft Word and Excel

 Male or Female at 20-35 years of age

 M a n a g e m e n t A s p e c t | 61

Cashier

 Male or female

 20-35 years of age

 At least high school graduate

Sales Agent

 Male or female

 At least 20 years of age

 Interpersonal skills

Delivery Man

 Male

 At least 18 years of age

 Knows how to drive

 Knows the streets and barangays in Cebu, specifically Barangay

Mabolo

Working Schedule

An employee’s work schedule includes the days and times that he/she is

expected to be working. A work schedule is necessary in getting the work done in

a well-organized manner.

Most employers make work schedules that aim to reduce labor cost and

get the maximum amount of work accomplished in the allotted time.

According the Phil. Labor Laws, the normal working hours of an employee

shall not exceed to eight (8) hours a day. A one (1) hour lunch break is also

intended for them. Table 15 shows the working schedule of the employees.
 M a n a g e m e n t A s p e c t | 62

Table 15

Working Schedule

WORKER WORKING HOURS

Production Worker Mondays to Saturdays

8:00 – 12:00 AM

1:00 – 5:00 PM

Bookeeper Mondays to Saturdays

8:00 – 12:00 AM

1:00 – 5:00 PM

Cashier Mondays to Saturdays

9:00 – 12:00 AM

1:00 – 6:00 PM

Sales Agent Mondays to Saturdays

8:00 – 12:00 AM

1:00 – 5:00 PM

Delivery Man Mondays to Saturdays

9:00 – 12:00 AM

1:00 – 6:00 PM

Recruitment Program

The people involved in the business are essential in achieving the

business’ goals. Without them, the business would not operate. With this, it is

crucial to consider a thorough selection of employees that would best suit the job.
 M a n a g e m e n t A s p e c t | 63

There is a huge difference between a worker who’s correctly matched to

their job and their organization and one who is not. Having a well-structured

recruitment program helps in matching the right people to the right jobs.

To do this, the applicants would be required to submit these requirements:

a) Curriculum Vitae;

b) 2x2 photo;

c) Barangay clearance; and

d) NSO birth certificate

After this, an interview with the owner will follow to attest the authenticity

of the data provided by the applicant. Assessment of the character and

capabilities of the applicant will be included in the interview. An orientation of the

job would then conclude the recruitment process.

Compensation Plan

The people behind the operations of the business are important for without

them, the business can’t continue with its normal operation. By way of

compensation, they are provided with salary and wages in return for the work

they do for the business.

Having a well-planned compensation program would not only benefit the

employees, but also the whole business. The employees are given wages every

15th and every month-end.

Wage rates that will be used are based on the current minimum wage law.

By this, a schedule is presented below.

 M a n a g e m e n t A s p e c t | 64

Table 16

Compensation Schedule

Position Basis Amount

Production Worker Daily Php 353

Sales Agent Daily Php 353

Cashier Daily Php 353

Delivery Man Daily Php 353

Bookkeeper Daily Php 353

Employee Benefits

Employee benefits may be costly, but, for the most of it, it has the ability to

find and keep highly qualified staff. Benefits boost employee loyalty.

13th month pay

Based on the law, thirteenth (13th) month pay means one twelfth (1/12) of

the basic salary of an employee within the calendar year.

All employees entitled to 13th month pay shall receive this regardless of

their position, designation, or employment status, and irrespective of the method

by which their wages are paid, provided that they have worked for at least one

month during the calendar year.

The 13th month pay shall be paid not later than December 24 of every

year.
 M a n a g e m e n t A s p e c t | 65

Paternity and Maternity Leave

Paternity leave refers to the benefits granted to a married male employee

in the private and public sectors, allowing him to take a leave for seven (7)

working days, with full pay, for the first four (4) deliveries of his legitimate spouse

with whom he is living with.

On the other hand, a pregnant woman employee shall be entitled

maternity leave of at least two weeks prior to expected date of delivery and

another four weeks after normal delivery or abortion. That’s a total of six weeks

maternity leave.

As provided by law, it shall be given to every employee entitled to it, upon

the compliance with all the requirements needed and proper verification.

SSS Contribution

The Social Security System (SSS) is a social insurance institution. It

provides and administers a pension fund for workers in the private sector that

has the following social security benefits: sickness, retirement, maternity,

disability, death, funeral, and employee’s compensation.

SSS contribution is monthly contribution based on the compensation of

the members. The current SSS contribution rate is 11% of the monthly salary

credit not exceeding P16,000 and this is being shared by the employer (7.37%)

and the employee (3.63%)

PhilHealth Contribution

The Philippine Health Insurance Corporation (PhilHealth) is a government-

owned and controlled corporation that deals with health care financing. It aims to
 M a n a g e m e n t A s p e c t | 66

provide quality health care for all Filipinos.

This program also provides a means for the healthy to pay for the care of

the sick and for those who can afford medical care to subsidize those who

cannot.

PAG-IBIG Membership

Pag-IBIG fund was established to provide a national savings program and

affordable shelter financing for the Filipino worker.

Pag-IBIG membership is mandatory for all SSS and GSIS-covered

employees; uniformed members of the AFP, BFP, BJMP, and PNP; as well as

Filipinos employed by foreign-based employers.

Management Policies

Policies are clear, simple statements of how your organization intends to

conduct its services, actions or business. It also enables a company to assist and

make its operations effective and efficient. Policies are important to ensure that

all employees understand what is expected of them and what they can expect

from the company.

General

1. Be on time.

2. Prior notification must be given by the employee before his/her absence.

3. In case of an emergency, he/she must file an absence form stating the

reason/s of his/her absence as soon as he returns to work. Documents

must be attached to support his emergency leave and this is to be

 M a n a g e m e n t A s p e c t | 67

considered and to be approved by the owner. Absent without official leave

for five consecutive days is deemed to have abandoned his/her work and

shall be subject to due process and termination.

4. All must wear proper dress code.

5. All employees must do their respective responsibilities during working

hours. Unnecessary actions such as sleeping or eating in the production

area and the non-production area are strictly prohibited.

6. The proper conduct must be observed at all times.

7. Any acts of violence and threat are strictly prohibited.

8. Drinking of alcoholic beverages, smoking and using of illegal drugs during

working hours and within the vicinity of the company is strictly prohibited.

9. Theft and misappropriation of supplies or any property of the enterprise

are strictly prohibited

Hiring and Recruitment

1. The owner is responsible for hiring and recruitment of employees and

should follow the general procedures provided firmly.

2. The owner must not be biased in hiring his/her relatives or friends, but

he/she can hire them if he/she they are qualified for the job.

Office

1. Any fraudulent acts which are prejudicial to the interest of the business are

strictly prohibited. Such actions are subject to penalties depending on the

degree of violation.
 M a n a g e m e n t A s p e c t | 68

Production Area

1. Observe cleanliness and discipline while in the production area.

2. Eating should be done during break time and not during the production

period.

3. Employees should ensure sanitation and maintenance of the tools,

equipment, and the production area.

Violations and Sanctions

In order to maintain a safe and healthy working relationship with the

organization, policies must be strictly followed. It can be achieved through

sanctions.

Sanctions are set of disciplinary actions, penalties or other means of

enforcement used as a tool for implementing the discipline among the employees

to ensure compliance with policies and rules set by the organization.

When these rules are not followed, violations happen.The table below

presents the list of offenses with its corresponding sanctions. These offenses are

not exclusive and such other actions not mentioned are to be evaluated through

the professional judgment of the management.

 M a n a g e m e n t A s p e c t | 69

Table 17

Violations and Sanctions

Frequency of Offenses and

Offenses Sanctions

1 2 3

Absences without leave/Valid Reason

a. 1-3 days

b. 4-6 days

c. More than 6 days but less than a

month

d. More than a month

Tardiness/Late

a. 1-3 times

b. 4-6 times

c. More than 6 consecutive times

Abandonment of duties during working time

Drunk when reporting to work

Negligence of Duties Resulting to damage

Misbehavior

Theft

Fraud

Using Drugs
 M a n a g e m e n t A s p e c t | 70

LEGEND

Verbal Warning

Written Warning

Suspension for 1 mon without

pay

Termination