53

CHAPTER 3
MAMAGEMENT PLAN

The management aspect involves the organization, company structures and
policies to fully p...
54

II. Manpower Requirements
General/ Administrative
Position
Board of Directors

-

-

Job Description
Directs the compa...
55

-

Human Resource
Personnel

-

-

Chief Accountant

-

-

-

-

Cost Accountant

-

-

-

employees.
Find ways to mak...
56

Treasurer

-

balance and transaction
level.
Keeps safe custody of the
company’s cash.
Prepares financial reports
to m...
57

-

Sales Agent

-

Search for potential
buyers.
Market and sell the
product.
Make deals and
contracts with
customers.
...
58

Supervisor

Maintenance Personnel

Delivery Personnel

-

Instructs and guides the
workers in their duties.
- Ensure t...
59

III. Compensation

Category

No. of

Salary per month

Salary per year

employees
Administrative

10

162,700

1,952,4...
60

Company Nurse

1

10,000

10,000

12

120,000

Maintenance Personnel

1

9,700

9,700

12

116,400

10

162,700

162,7...
61

IV. Business Monitoring
A. Pre investment Activity
Before the execution of the business, adequate knowledge should be
...
62

D. Site Preparation
In this period, the business shall prepare its plant and office location. The
business would buy t...
63

H. Advertising and Promotion
In order to help the product make its way into the market, there is a need
for advertisem...
64

1. Hiring
The company will hire employees in accordance with the set of
qualifications for each position. It will be d...
65

At some point in time, there are possibilities that the higher authority
would call the attention of the employees and...
66

30
September
31
October
30
November
31
December
TOTAL
365
Table 3.10 Working days

4
4
5
4
52

0
0
3
2
17

26
27
22
25...
67

3. Third and Fourth offense- suspension
It is done when there is a severely employee mistake. The
suspension period la...
68

prevail, the new employee is under the probation until the evaluation has taken
place.
At the end of the probationary ...
69

For Work Performed
on

Rate of Pay,
Based on
Daily Rate
130%

Rate of Pay,
Based on
Overtime Rate
169%

Special days

...
70

Independence Day

June 12

Eid’l Fitr

August 20

National Heroes Day

Last Monday of August

Bonifacio day

November ...
71

Security and Exchange Commission
The company shall file articles of incorporation and all other necessary
requirements...
72

Local Government of Pagbilao
Compliance with the legal requirement of Pagbilao will alsobe necessary,
for the location...
73

o Business Taxes and Licenses
Mayor’s permit, clearances from baranggay, and other legal
requirements have been grante...
74

VII. Gantt Chart
2012

Months
Feasibility
Study

Feb

Mar

Apr

May

Jun

Business
Application
Financing
Activities
Pr...
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Transcript of "Page53.chapter3"

  1. 1. 53 CHAPTER 3 MAMAGEMENT PLAN The management aspect involves the organization, company structures and policies to fully prepare and equip the company with adequate knowledge on running the business as well as complying with legal requirements. This portion also includes a clear and precise identification of duties, responsibilities, compensations, flow of authority and manpower level requirement to direct the members to coordination and productivity. I. Company Structure Board of Directors (5) Internal Auditor (1) Chief Executive Officer (1) Productions Manager (1) Chemist (1) Purchasing Officer (1) Human Resource Manager (1) Supervisor (1) Marketing/Sales Chief Accountant (1) Manager (1) Sales Agent (5) Factory Workers (12) Maintenance Personnel (4) Company Nurse (1) Delivery Personnel (4) Fig.3.1 Company Structure Cost Accountant (1) Treasurer (1)
  2. 2. 54 II. Manpower Requirements General/ Administrative Position Board of Directors - - Job Description Directs the company towards excellence. Govern and facilitate the decision making of the company. Assures the credibility and integrity of the company. Supervise the overall operation of the business. Implement business policies and goals. - - - Internal Auditor - - - Chief Executive Officer - - Productions Manager - - Expresses an opinion whether assertions of the management in financial statements are free from material misstatements. Inspects and examine whether internal control is accurate and effective. Check whether the financial statements are free from error and fraud. Constructs business policies and recommendations to the board. Administer the overall operation of the business. Instructs and guides courses of actions throughout the operation. Controls and monitors the overall production of the product. Guides, instructs and motivate employees. Makes sure the efficiency and effectiveness of the - - - - - Job Qualifications Must own at least one share of the capital stock registered in his/her name. Every director must continuously own at least a share of stock during his term, otherwise, he shall automatically cease to be a director. Must be capable of governing the business. Must know and understand the overall operations of the business. Holds the title Certified Public Accountant. Must have objectivity and professionalism. With good communication and interpersonal skills. Must be a graduate of any business course. Should have at least 3 years of outstanding actual work experience. Professional written and verbal communication and interpersonal skills. Excellent managing skills. Must be a graduate of any business course. With good managerial, communication and interpersonal skills. Competent and dedicated to the job.
  3. 3. 55 - Human Resource Personnel - - Chief Accountant - - - - Cost Accountant - - - employees. Find ways to make the company more productive through effective production processes. Screens applicants and suggest the management the most promising ones. Determines procedures on how to motivate and train employees. Ensures the preservation of employee dignity. Manage the accounts and finances of the company. Implement generally accepted accounting procedures. Determines proper handling of financial transactions and approves transactions within designated limits. Control the emergence of inconsistencies in accounting procedures. Reports to the management matters about the financial statement accounts. Primary responsibility is the compilation and preparation and of financial statements. Gathers and keep records of all production cost. Allocates the production cost to the products produced. Prepares the cost of production report. Do bank reconciliations Make sure the completeness, validity and accuracy of financial statements, per account - - - - Must be a graduate of Bachelor of Science Major in Human Resource Management or any related courses. With good interpersonal and communication skills. Holds the title of Certified Public Accountant. With good interpersonal and management skills. With good communication skills. Possess extensive knowledge of generally accepted standard accounting principles. Must be a graduate of accounting major course. With professionalism and good communication and interpersonal skills.
  4. 4. 56 Treasurer - balance and transaction level. Keeps safe custody of the company’s cash. Prepares financial reports to management. - - Attends to the medical needs of the personnel. - Manages the medical supplies in the clinic. - Be able to apply first aid procedures if the circumstance requires. - Account all the inventory Purchasing Officer accounts. - Ensures the availability of all materials for production and office use. - Process acquisition slips and prepares purchase orders. Table 3.1 Manpower Requirements for General/Administrative Company Nurse - - - A graduate of Bachelor of Science in Business Administration Major in Finance/Financial Management With good communication skills. Knowledge financial analysis and communication. Male or Female. Must hold a title of a registered Nurse. 21 to 40 years old Finished a college degree. With good communication and interpersonal skills. With no criminal record or offense. Sales/ Marketing Position Marketing/Sales Manager Job Description - Develop and create marketing strategies. - Assures the market visibility of the company. - Instructs and guides agents. - Thoroughly study the market needs and how to supply them. Job Qualifications - Must be a graduate of Bachelor of Science in Business Administration Major in Marketing or other related courses. - With excellent marketing and management skills. - With good communication and interpersonal skills.
  5. 5. 57 - Sales Agent - Search for potential buyers. Market and sell the product. Make deals and contracts with customers. - - Must have at least 2 productive years in the marketing-field. 23-35 years old Finished a college degree. With good communication and interpersonal skills. With pleasing personality. Table 3.2 Manpower Requirements for sales/marketing Direct Labor Position Factory Workers Job Description - Has the over-all responsibility on the process of producing the product. - Puts raw materials into process. - Guards the production process. - Packing the final product. Table 3.3 Manpower Requirements for Direct labor Job Qualifications - Male or Female - 20 years old and above - Must be at least a high school graduate. - With no criminal record or offense. Indirect Labor Position Chemist Job Description - Assures the accuracy of the production process. - Test compounds and solutions. - Check and guarantee the quality of the product. - Research on and develop the production process and the product itself. - Job Qualifications - Finished a degree of Bachelor of Science in Chemical Engineering. - With good communication and interpersonal skills. - Ability to analyse and improve the scientific aspects of the production. -
  6. 6. 58 Supervisor Maintenance Personnel Delivery Personnel - Instructs and guides the workers in their duties. - Ensure that a group of subordinates properly execute their functions in the production. - Observe and evaluate the workers’ performance. - Assist and recommends to the manager the evaluation of the subordinates. - Regularly check and maintain the productivity of the machines and equipment. - Repair broken parts of the machines and equipment - Ensures the cleanliness and orderliness of the production site. - Ensures the company supplies stock. - Safely transports the goods to customers. - Maintains the quality of the product during transportation. - Ensures that the products would be delivered on time. Table 3.4 Manpower Requirements for Indirect Labor - - - - - - Must be a graduate of any business courses. Must know how to manage and deal with employees. With good interpersonal and communication skills. Male 23 years old and above Must have technical knowledge and experience on machines and equipment. Must be at least a high school graduate. With no criminal record or offense. Male 23-35 years old Must have a professional driver’s license. At least a high school graduate. With no criminal record or offense.
  7. 7. 59 III. Compensation Category No. of Salary per month Salary per year employees Administrative 10 162,700 1,952,400 Selling 6 80,000 960,000 Direct Labor 12 103,680 1,244,160 Indirect Labor 9 132,800 1,225,200 Total 37 479,180 5,381,760 Table 3.5 Total Compensation Position No. of Basic Employees Salaries 2013 Chief Executive Officer 1 Internal Auditor 1 Productions Manager 25,000 Salary Months per Salary per year month 25,000 12 300,000 20,000 20,000 12 240000 1 20,000 20,000 12 240,000 1 20,000 20,000 12 240,000 Chief Accountant 1 18,000 18,000 12 216,000 Cost Accountant 1 15,000 15,000 12 180,000 Treasurer 1 13,000 13,000 12 156,000 Purchasing Officer 1 12,000 12,000 12 144,000 Human Resource Manager
  8. 8. 60 Company Nurse 1 10,000 10,000 12 120,000 Maintenance Personnel 1 9,700 9,700 12 116,400 10 162,700 162,700 Total 1,952,400 Table 3.6 Salaries of Administrative Employees Position No. of Basic Salary Employees Salaries per 2013 month 1 Marketing/Sales 20,000 20,000 Manager 5 Sales Agent 12,000 60,000 Total 6 32,000 80,000 Table 3.7 Salaries of Sales/Marketing Employees Position No. of Basic Employees Salaries 2013 12 8,640 Factory Workers Table 3.8 Salaries for Direct Labor Position Salary per month 103,680 Months Salary per year 12 240,000 12 720,000 960,000 Months Salary per year 12 1,244,160 No. of Basic Employees Salaries 2013 1 20,000 1 17,000 3 9,700 Salary per month 20,000 17,000 29,100 Months 12 12 12 240,000 204,000 349,200 9,000 67,700 36,000 126,100 12 12 432,000 1,225,200 Chemist Supervisor Maintenance Personnel 4 Delivery Personnel Total 9 Table 3.9 Salaries for Indirect Labor Salary per year
  9. 9. 61 IV. Business Monitoring A. Pre investment Activity Before the execution of the business, adequate knowledge should be acquired for three months whether the formulated idea is feasible or not. Indeed, enough attention must be rendered to this concern to be able to forecast the possibilities. This period is set to identify the market of the projected business and how the business will be operated and managed. B. Business Application This period is intended for the accomplishment of filing all the legal papers required for the operation of the corporation. Such legal documents include the Article of Incorporation to be filed in the Securities and Exchange Commission (SEC), and business name to the Department of Trade and Industry .Moreover, the company will also file other requirements to other government offices. C. Issuance of Stock Shares In order to fully finance the operation of the company, such as construction of the site, purchasing equipment and materials needed and other projected costs, Carbon Plus Corporation will issue shares to its potential shareholders worth P 50,000,000.00 with 500,000 authorized ordinary share capital, P 100.00 par value.
  10. 10. 62 D. Site Preparation In this period, the business shall prepare its plant and office location. The business would buy the land and construct the plant and office building. It might take more or less than half of a year for the construction to be finished and polished. E. Installation and acquisition of machineries and equipment During the preparation of the plant site, the management will scout all the necessary machineries and equipment to be used in its operations. Once the plant site is prepared for settlement, the company would then acquire and install the machineries and equipment. F. Hiring and training of personnel Now, the company shall be open for hiring employees. It shall employ the most competent applicant for the success of the company does not only lie with the management but also to all its personnel. Thus, after hiring the most competent applicant it shall now undergo through training. Here, the employee would know and understand how the business would function. G. Purchase of Raw Materials This is about the purchase of raw materials coming from Quezon and near areas. This also deals with the familiarization of employees with regards to the usage of the raw materials in the production process for them to be knowledgeable in the components of the product.
  11. 11. 63 H. Advertising and Promotion In order to help the product make its way into the market, there is a need for advertisements and promotions. Advertisements and promotions are a huge and critical part in marketing the product especially in the first years of the company’s operations. I. Start of Production and Operation The production of Activated Carbon will now start at this point. At this time, all raw materials, manpower, and machineries are ready to operate and start the production. Product order can now be entertained. V. Organizational Policies A. Employment Before the actual operations of the business, the company will already be working on the recruitment, hiring and training of the employees, to condition them in the nature of the operations. After undergoing training and evaluation, each employee would be under the responsibilities of their respective department managers. The key personnel will be employed on a permanent basis or depending in work performance. However, plant workers and staff will first subject to a sixmonth probationary period.
  12. 12. 64 1. Hiring The company will hire employees in accordance with the set of qualifications for each position. It will be done on a first come first serve basis; no special treatment would be tolerated to promote fairness. 2. Suspension Suspension is a common practice in the workplace as a part of the reinforcement procedure of the company. Negative reinforcement by B D. Skinner will be used by Carbon Plus Corporation to motivate the employees to follow the stated policies, wherein, corresponding punishment will be given to employees who violate the policies. 3. Termination Employees who persistently and heavily violate the policies of the organization can be subjected to termination. B. Office Hours Carbon plus Corporation’s office is open Monday through Saturday from 8 o’clock in the morning to 12 o’clock in the afternoon and shall resume at 1:00 to 5:00 in the afternoon, having a Forty eight (48) Office working hours in a week per personnel. C. Factory Hours Carbon Plus Corporation will operate from Mondays to Saturdays from 8:00am to 12:00 and will resume at 1:00 to 5:00 in the afternoon. Therefore each worker will have forty eight (48) working hours a week.
  13. 13. 65 At some point in time, there are possibilities that the higher authority would call the attention of the employees and schedule them for work as necessary. All employees are expected to be at their work locations ready for work at their scheduled time. Persistent late arrival to work and/ or early leaving from work will result in disciplinary actions moreover, it may include termination. D. Working days There will 286 working days for office employees and factory personnel after considering the non-working holidays and a 10 day-allowance for interruptions in the operation such as brownouts, equipment breakdowns, typhoons and the likes. Salaries for key personnel are fixed and shall be released every 15th and 30th day of the month. Moreover, salaries of operations personnel are also paid every 15th and 30th day of the month, depending on the number of hours they have worked. Months January February March April May June July August Number of Days Sundays 31 28 31 30 31 30 31 31 4 4 5 4 4 5 4 5 Nonworking Holidays 2 0 0 3 1 1 0 5 Operating Days 25 24 26 23 26 24 27 21
  14. 14. 66 30 September 31 October 30 November 31 December TOTAL 365 Table 3.10 Working days 4 4 5 4 52 0 0 3 2 17 26 27 22 25 296 E. Leave of absences All personnel of the company are entitled to a maximum of ten (10) days leave of absences per operating year. The leave of absences should be filed one week before the desired date and requires approval of the department manager. The key personnel need to accomplish important tasks on their respective department before they can avail the leave of absences. Moreover, they should return in the office in case urgent or important situation happens that requires their presence. F. Disciplinary Measures 1. First offense- Verbal warning Under this circumstance, the employee is reminded verbally about the job performed poorly or minor violation of company’s rules and regulations. 2. Second offense – written reprimand What applies to verbal warning also applies to written reprimand. In this case, the employee receives a memorandum or personal letter from its department manager. A record of employees’ violation will be kept.
  15. 15. 67 3. Third and Fourth offense- suspension It is done when there is a severely employee mistake. The suspension period last up to six month period depending upon the nature of the offense done by the employee. 4. Fifth offense- Management Intervention In case a serious violation takes place or mistakes become frequent in performing specific task, the management decides a specific action applicable to the situation, which may further result to termination of the employee on his service. G. Employee health benefits At the time of recruitment, there will be a physical health examination to each applicant for the company to be sure that the personnel that will be hired are physically healthy and mentally fit for the position. A regular quarterly check-up will also be employed to company employees. Moreover, the company’s clinic will be open to cater to the needs of the employees. H. Probationary Period A six-month probationary period is required for all new employees. This probationary period provides an opportunity for new employees to evaluate their work situations and in turn, provides the CEO an opportunity to judge their performance and suitability for continued employment. This probationary does not represent a guarantee or contract fir employment for the full six-months or any other period of time, and does not affect the eligibility requirements for benefits. A written evaluation will be provided by the CEO. If time restraints
  16. 16. 68 prevail, the new employee is under the probation until the evaluation has taken place. At the end of the probationary period, the CEO shall prepare a written evaluation of the employee’s performance, and review the evaluation of the employee. The evaluation shall take into consideration the employee’s ability to form sound relationship with the membership, volunteers, staff, CEO and Board of Directors; progress on the job; and professional community relationship. I. Vacation Employees may take vacations at any time during the year. They must, however, prearrange such vacation with the CEO to avoid conflict with scheduled and other work in the company that may require their presence. Employees may accumulate up to 15 days of vacation time. J. Overtime Work Article 87 of the Labor Code of the Philippines grants that work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five (25%) percent thereof. o Office employees may work until 10 o’clock in the evening o First and Last shift of factory workers can work before their scheduled time for overtime provided that it is necessary and for the benefit of the entity.
  17. 17. 69 For Work Performed on Rate of Pay, Based on Daily Rate 130% Rate of Pay, Based on Overtime Rate 169% Special days 130% 169% Rest day which is also a special day Regular holiday 150% 195% 200% 260% Rest days 260% Regular holiday which is also a rest day Table 3.11 Rates on Holidays and Overtime 338% (source: Cost Accounting by Nenita Mejorada) K. Paid Holiday As in accordance with the Labor Code of the Philippines Art. 94, right to holiday pay, every worker shall be paid his regular daily wage during regular holidays. Carbon Plus Corporation may require an employee to work on any holiday but such employee shall be paid on a compensation equivalent work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate, and as used under this Article “Holiday” includes: Regular Holiday Date New Year’s Day January 1 Maundy Thursday Movable Date Good Friday Movable date Araw ng Kagitingan April 9 Labor Day May 1
  18. 18. 70 Independence Day June 12 Eid’l Fitr August 20 National Heroes Day Last Monday of August Bonifacio day November 30 Christmas Day December 25 Table 3.12 Schedule of regular holidays Special Non-Working Holiday Date Chinese New Year January 23 Quezon Day August 19 Lucena Day August 20 Ninoy Aquino Day August 21 All Saints Day November 1 Additional Special Non Working November 2 Day Last Day of the Year December 31 Table 3.13 Schedule of Special Non- Working Holiday VI. Legal Requirements For the business to be legally established and operated, the company must first comply with different legal requirements. Thus, it shall file and process all the necessary required documents to the following government entities before it starts its operations:
  19. 19. 71 Security and Exchange Commission The company shall file articles of incorporation and all other necessary requirements at the SEC office. This would give the entity its separate juridical identity. Department of Trade and Industry DTI monitors businesses within the country. Thus, it is a requirement of the government to register all business operating inside the country. And so, the company shall register the business at this office. Bureau of Internal Revenue The company must file a tax identification number at the BIR. This would oblige the company to pay taxes at a monthly, quarterly or annual basis. Department of Environment and Natural Resources To ensure that the company is operating in accordance with the requirements of DENR in the proper waste management as well as other aspects involving the utilization of the environment. Land Transportation Office The company will secure all the essential permit and licenses for the registration of the delivery vehicle.
  20. 20. 72 Local Government of Pagbilao Compliance with the legal requirement of Pagbilao will alsobe necessary, for the location of the company’s plant site. City Government of Lucena Carbon Plus Corporation complies with all the legal requirements in the city where the company will be operating. o Zoning The company has submitted all the legal requirements to the Zoning Department on the local government located at City Hall, Lucena City. o Fire and Safety The Bureau of Fire has granted the Carbon Plus Corporation the fire and safety permit after the inspection by their authorized staffs. o Building permit The City Engineer’s office has given the corresponding building permit to the Carbon Plus Corporation after completion of all requirements needed in applying for the permit.
  21. 21. 73 o Business Taxes and Licenses Mayor’s permit, clearances from baranggay, and other legal requirements have been granted to the company. These clearances and permits will be renewed every year end and business taxes will be paid to the City Hall for the validity of the permits and the legality of the business. o Sanitary Permit Initial inspection of the place and observation of the rules and regulations was conducted in a manner satisfactory to the Regional Sanitation Committee. For employee benefits: It is mandatory by the government to give benefits and compensations to its employees. Thus, the company should register and file its company at the agencies below for the payment of employee compensations. Philhealth Pag-ibig Social Security System
  22. 22. 74 VII. Gantt Chart 2012 Months Feasibility Study Feb Mar Apr May Jun Business Application Financing Activities Preparation of plant site & acquisition of machineries Hiring and Training Staffs Purchase of raw materials Promotion and Advertisements Start of operation Table 3.14. Table form for estimated period to start the operation Jul Aug Sep Oct Nov Dec 2013 Jan

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