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Cavite Manufacturing Co., Inc.


                      CAVITE MANUFACTURING CO., INC.
                         Lot 5, Block 13, Phase 1 Cavite Economic Zone,
                                          Rosario, Cavite




Management Research                                                       Page 1
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




Management Research                                                                       Page 2
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.




Management Research                                                                      Page 3
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.


Management Research                                                                      Page 4
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




Management Research                                                                       Page 5

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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 Management Research Page 1
  • 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 Management Research Page 2
  • 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. Management Research Page 3
  • 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. Management Research Page 4
  • 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 Management Research Page 5