Canadian Coalition For Good Governance: Executive Compensation Principles
Cavite Manufacturing Co., Inc. Performance Evaluation
1. Cavite Manufacturing Co., Inc.
CAVITE MANUFACTURING CO., INC.
Lot 5, Block 13, Phase 1 Cavite Economic Zone,
Rosario, Cavite
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2. Cavite Manufacturing Co., Inc.
1. What are the different departments and units in the company and indicate
whether they are cost center, revenue center, or profit center:
Cost Center – is part of an organization that does not produce direct profit and adds to the cost
of running a company.
Revenue Center –is distinctly identifiable department, division, or unit of a firm that generates
revenue through sale of goods and/or services.
Profit Center - is a business unit or department within a corporation, for which both revenues
and expenses are recorded.
CAMANCO has the following departments and units with their respective classifications as cost
center, revenue center or profit center:
DEPARTMENTS/UNITS CLASSIFICATIONS
President/Admin Cost Center
Admin
IMPEX Cost Center
Accounting Cost Center
General Manager Cost Center
Maintenance Cost Center
Warehouse Cost Center
Building and Facilities Cost Center
Sanitation Cost Center
Sales Profit Center
Purchasing Cost Center
Production Off-Plant Cost Center
Production Revenue Center
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3. Cavite Manufacturing Co., Inc.
2. What are the performance evaluation of officers and employees? (Qualitative or
quantitative)
CAMANCO has the following evaluation of their officers and employees:
For their officers, (Managers and Assistant Manager) they are evaluated
based on the recommendation of their President which is 5% (highest of the basic
pay) including confidential payroll with annual increase.
For their Supervisors & Office Staffs, they are based on the recommendation of
their respective managers. As of now they are on the process of making
performance evaluation form. Last year they based the increase on their
performance as per recommendation by their respective managers then discuss to
the group managers with the President for the alignment of salaries based on
their position. For the previous years, there is no annual increase implemented, if
the government gave an increase in minimum wage, they gave across the board
increase to office staff and supervisors. One year upon regularization, they have
P2 pesos seniority pay per day then it will increase to P4 pesos on the 2nd year up
to P10.00 on the 5th year, then seniority pay stopped.
For their Employees (Factory Workers),there is no annual increase based on the
mandate of the government who sets the minimum wage, the only difference is
that they gave seniority allowance of 2 pesos until P10 pesos per day for a period
of 5 years.
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4. Cavite Manufacturing Co., Inc.
3. What are the career paths in the company? E.g. merits for promotion.
Their promotions are coming from their Parent Company. The same as other
companies, they used to promote their employees by giving them higher positions.
They also include training of their employees in United States for promotional
benefits.
4. Are fringe benefits and/or incentives given to employees?
Yes, there were fringe benefits and incentives given to their employees. All
employees were given groceries every Christmas and annual medical examination.
Clothing and Meal Allowance are only given to managers of every department or
units.
5. Is there a productivity incentive or profit sharing in the company?
Yes, there is productivity incentive or profit sharing in their company. They have
Excess Quota Payment which means that if a worker reached on their respective
quota, they are being paid by the excess.
6. Is there any recognition given to the employees like loyalty award, outstanding
employee award, etc.?
None. They do not give recognition to their employees. Only rewards and bonuses
were given to selected officers secretly.
7. Do officers and employees required attending seminars regularly at company's
expense?
Yes, they do require their officers and employees to attend seminars which are
charged to their company. Attending seminars for them is really important
because this will help a lot to their company.
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5. Cavite Manufacturing Co., Inc.
8. Are the employees allowed to form a union?
CAMANCO do not allow their employees to form a union. Their management has
established Labor Management Committee (LMC) to avoid formation of union.
Their reason for this is that, like other companies they do not want protesting of
employees rather they want to have harmonious relationship with them.
9. Does the company use scorecard in measuring performance and/or are they
practicing transfer pricing?
CAMANCO and their Parent Company, Magid Glove and Safety Inc., do not use
scorecard in measuring the performance of their employees after the performance
of their company.
As instructed by their Parent Company, they used Standard Costing which is based
on the performance of their company.
MANPOWER:
REGULAR EMPLOYEES 92
CONTRACTUAL EMPLOYEES 83
TOTAL 175
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