Chapter 6

ORGANIZATION AND MANAGEMENT STUDY

A. Basic Considerations in forming the organizations

A successful business is a venture that allows to make profit while helping

environment. Recycling business is a growing sector of waste management and
promises to get more aware of the need to establish positive environmental
credentials. Recycling is a broad market and the choice will be between collection
(collecting recyclable materials) and production (making new products from
recycled goods). Before the business is fully operated, there are factors need to
be considered in forming an organization for both internal and external.

Structure of the Organization

The determination of the form of business is another important decision to be

taken before starting an organization on which is suitable for the business depends
upon various factors; Nature of business, size, capital, risk and others. Since there
are six (6) proponents, they decided to form a General Partnership organization
and they will combine their knowledge and skills to come up with a successful
business enterprise.

Proper handling of people

From the internal and external factors, the business management will deal
with for both customers and employees. In operating a business with employees,
good relationship should be established, because misunderstanding and conflicts
between employees is detrimental business, also the business shall allow and
obey the business rules. Handling a customer is not an easy task that it should be
done with respect and a good communication rapport between employees and
customers to avoid conflicts.
Ethical Considerations

Many entrepreneurs that want to move into recycling sphere may well be
doing so for ethical reasons. Bear in the mind that recycling is often dominated by
businesses who have the resources and supply chain to handle waste all stages
of the process for the lowest cost. If the driving force behind setting up a recycling
company is ethical, it is not a bad thing, the business will be benefited. In the part
of the Eco-Gift Zone, the business will mind that business is not always competing
with other direct and indirect competitors who have to same nature of industry but
the business must deal with the competitors who will sacrifice environmental
concerns to increase profit.

Tax Matters

The type of entity that will be used in forming a business generally affect
what type of taxes the entity, and its owners may pay. The most common tax
matters to be considered individual tax return, partnership return, corporate return.
Since the proposed business Eco-Gift Zone chose a partnership form, the
advantage of it is the income of the partnership is not taxed separately from
partner’s income.

Risk

In a free enterprises structure, the outlook on business is inevitably

accompanied by risk of loss, this hazard exerts profound impact upon the
organizers of business and to the users of capital, not to say on society as a whole.
The risk lies mainly in the uncertainty of the income expected and on the recovery
of the original principal since when a business enterprise fails to make a profit an
continuously to spend more money than it takes, it evident that prospect and risk
were not carefully weighted prior to the establishment of the business.
Waste Management

Another thing to be considered that will affect the business is the proper
sanitation to avoid the dissatisfaction of the customer. The business waste
management needs clear strategy for identification, segregation, storage and
disposal. The management should necessarily conduct the proper neatness in the
manufacturing area to avoid the inconvenience of the customer as well as the
laborers.

Rules and Regulation

The organizations are associate rules and regulations in waste
management with the hazardous collections but in fact, much of the industry is
regulated. Because of the diverse range of products of the business may
encounter, the rules surrounding waste can be complex. The proponents decided
to start a recycling business and will be reminding on maintaining full compliance
at all times, even it is costly because falling foul of environmental legislation can
quick ruin reputations.

Cost

The cost of forming a recycling business can vary widely depending on the
services that wish to provide. Because many aspects of the waste management
lifecycle, such as recycling, can be subcontracted out. The business that will be
proposing is a “production” type, the initial cost will be higher as the business need
to factor in equipment and premises.
B. Form of Ownership

The proponents decided to create a general partnership because it is easy

to establish and simple. The form of business ownership that will have to be
adapted is a strategic decision that must be considered at the perception of the
business. The decision may later be proved to be supportive of the objectives of
the small business, or may become an obstacle.

All the partners will contribute money depending upon the ratio agreed by
the partners and the risks depending on the position assigned. In making the
decision, all the partners are going to participate. Carefully thinking must be
considered in determining the ownership form. Each type has its own single
features, advantages, and disadvantages.

The proposed business will be systematized under partnership composed

of six (6) partners who will bind themselves to contribute money, property, or
industry to a common fund with the intention of dividing profits among themselves.

C. Organizational Chart

Structural organization describes lines of authority and communication and

specifies the mechanism by which organizational tasks and programs are
accomplished. It shows the relationship among the position as to whose authority,
responsibility by the people who occupy them. It aims to aid one to view the
business structure as a whole. It shows the delegation of authority and the
responsibilities. It assists the management to divide the different duties and
functions in the business, so those will be performed effectively.

The proposed organizational structure will show the type of the business’
organization. It will follow a functional type of organization wherein there is a direct
flow of authority from the top position. The business will be composed of General
Manager (1), Production Officer (1), Marketing Officer (1), and Sales person (1).
The said positions will be served as the role of the partners. The partners decided
to hire additional laborers, two (2) sewers and one (1) assistant/Machine Operator
 General Manager

Marketing Officer ProductionOfficer

Assistant/Machin
Sales Person Sewers (2)
e Operator

Figure 6.0 Organizational Chart

OFFICERS AND KEY PERSONNEL

DUTIES AND RESPONSIBILTIES

A. GENERAL MANAGER

 Responsible for the overall operation of the enterprise and will oversee the
works and duties of the subordinates related to finance, marketing and
production.
 Improve the operational systems, processes and policies in support of
organizations mission -- specifically, support better management reporting,
information flow and management and business process.
 Play a significant role in long-term planning, including an initiative geared
toward operational excellence.
 Responsible for recording, keeping and filling old business transactions
submitted daily by the cashiers from different outlets of the business
 Giving salaries and benefits to the laborers, sales person
 Preparing financial reports
 Monitoring and auditing of all financial reports
 Ensure that each customer receives outstanding service by providing a
friendly environment, which includes greeting and acknowledging every
customer, maintaining outstanding standards, solid product knowledge and
all other aspects of customer service.
 Maintain an awareness of all promotions and advertisements.
 Accurately and efficiently ring on registers and accurately maintain all cash
and media at the registers.
 Communicate customer requests to management.
 Enter all media from register into the tally program.
 Maintain orderly appearance of register area and supplies stocked.
 Any other tasks as assigned from time to time by any manager
 B. MARKETING OFFICER

 Purchasing materials and supplies needed by the business related to store

 Prospecting and contracting potential customers/buyers
 In promoting products of the employed business
 Developing marketing strategies for both online and personal

C. PRODUCTION OFFICER

 Purchasing materials and supplies needed by the production

 Responsible for maintaining the service vehicle (Motorcycle)
 Oversees his/her subordinates
 Secures the cleanliness of the production area
 Checks the quantity and quality of the product to be distributed
 Responsible of selection and maintenance of the equipment in production

D. SALES PERSON
 Deal directly with customers either by telephone, electronically or face to
face
 Respond promptly to customer inquiries
 Handle and resolve customer complaints
 Obtain and evaluate all relevant information to handle inquiries and
complaints
 Manage customers' accounts
 Keep records of customer interactions and transactions
 Record details of inquiries, comments and complaints
 Record details of actions taken
 Follow up on customer interactions
E. LABORER

SEWER

 Develop, copy, or adapt designs for garments and design patterns to fit
measuring, applying knowledge of garment design, construction, styling
and fabric for making pillow and teddy bear stuffed toys
 Sew garments, using needles and thread or sewing machines
 Estimate how much garments will cost to make based on factors such as
time and material requirements
 Trim excess material, using scissors
 Repair or replace defective garment parts
ASSSISTANT/MACHINE OPERATOR
 Assisting to the sewers while making products
 Must check materials for quality and availability.
 Responsible for ordering materials and supplies
 Responsible for cleaning equipment by closely following daily and weekly
cleaning lists.
 Responsible operating of machines and equipment
 Determining the rejected products.
QUALIFICATIONS:

GENERAL MANAGER

 College Graduate related to Business Administration

 Of good moral character
 Can speak English, Tagalog, and Bicol
 Good Communication Skills
 Preferably graduate of Master in Business Administration
 Computer Literate (Microsoft word, excel, and PowerPoint)

PRODUCTION OFFICER

 College Graduate related to Business Administration

 Preferably graduate of Operations Management
 Of good moral character
 Can speak English, Tagalog, and Bicol

MARKETING OFFICER

 College Graduate related to Business Administration

 Of good moral character
 Can speak English, Tagalog, and Bicol
 Good Communication Skills
 With professional driver’s license. Physically fit

SEWER

 At least high school graduate

 Good Moral character
 Must have at least two (2) year-experience related in sewing, tailoring or
dressmaking
 Must have knowledge in preparing related products
ASSISTANT LABORER/MACHINE OPERATOR

 At least high school graduate

 Good Moral character
 Must be 18 -25 years old

SALES PERSON
 At least a high school graduate
 Good Moral Character
 Good Communication Skills
 Must be 18 -25 years old
 Table 6.0
Salaries and Wages

Position Rate per Number of Monthly Annually

Day Employees

General Manager 350 1 P 8,400.00 P 100,800.00

Marketing Officer 305 1 7,320.00 87,840.00

Production Officer 305 1 7,320.00 87,840.00

Sales Person 305 1 7,320.00 87,840.00

Sewer 305 2 14,640 175,680.00

Assistant Laborer 305 1 7,320.00 87,840.00

(Machine
Operator)

Table shows the salary of each employees of Eco-Gift Zone. The business will
apply the minimum rate as a starting salary rate except for General Manager that
has a P350.00 per day rate.
 Table 6.1

Remittances and Contributions

Position Number of SSS Philhealth Pag- EC Total Monthl Annual
Employee ibig y Cost Cost
s

General 1 589.30 87.50 100.00 10.00 786.80 786.80 9,441.60

Manager

Marketing 1 552.50 87.50 100.00 10.00 750.00 750.00 9,000.00

Officer

Sales Person 1 552.50 87.50 100.00 10.00 750.00 750.00 9,000.00

Production 1 552.50 87.50 100.00 10.00 750.00 750.00 9,000.00

Officer

Sewer 2 1,105 175 200.00 20.00 1,500.00 1,500.. 18,000.00

00

Assistant 1 552.50 87.50 100.00 10.00 750.00 750.00 9,000.00

Laborer
(Machine
Operator)

Total P4,500 P63,441.60

.00

Table shows the government premiums of Eco-Gift Zone. The business will apply
the rate based on the bracket of their salary for SSS, PAG-IBIG and PHILHealth.
 Table 6.2

13th month Pay Computation

Administrative and Selling

Position Number of Total Cost

Employees

General Manager 1 P 8,400.00

Marketing Officer 1 7,320.00

Sales Person 1 7,320.00

Sub total P 23,040

Direct Labor

Sewer 2 14,640

Assistant Laborer/ Machine 1 7,320.00

Operator

Production Officer 1 7,320.00

Subtotal 29,280

Total P 52,320.00

Note: 13th month pay of employees of Eco-Gift Zone will be based on their annual
salary.
E. Management Proposal

The central idea of management is to make action or decision help achieve

a careful chosen goal. The word management also refers to a group of persons
called executives who perform management activities. The Eco-Gift Zone will be
composed of manager and officer in different areas in the management. Since the
business is still in the introductory phase, there are management policies that will
be implemented.

The business will implement internal controls activities such as proper

separation and segregation of duties, the business segregate duties because
certain job are mutually incompatible and, if left unchecked, allow one person too
much unsupervised access to company assets. No individual should be able to
initiate a transaction and then approve it, record information in accounting records
and control the proceeds that result, personnel policies and accurate and timely
recording of transaction and events are preventive controls that are designed to
prevent errors, inaccuracy or fraud before it occurs. Detective controls such as
proper delegation of authority and responsibility, and proper execution of
transaction are intended to uncover the existence of errors, inaccuracies or fraud
that has already occurred.

GENERAL MANAGEMENT POLICIES

The following are the general company policies that must be followed by
each personnel and employees:
1. The Eco-Gift Zone will have a complete separation of duties to functions
related to recording, authorization and custody.
2. Will require employees to attend trainings and activities necessary for
improving of their skills and knowledge for the business.
3. Will maintain a good relationship and ethical values among employees.
4. Will have programs to resolve issues with coworkers and other
departments by discussing problems directly and working toward agreed
solutions.
5. Will hold each selves and each other accountable for addressing
inappropriate comments and behavior.
6. Proper alignment of employee performance objectives to organization
goals.
7. Supervisor-employee collaboration.
8. Cycles of performance management.
9. Regular performance planning, performance feedback and performance
management.
 E. PROJECT SCHEDULE

Figure 6.1 Project Schedule

2018 2019

Activities Person(s) Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct
Responsible
Feasibility Proponents
Study
Site Selection Marketing
Officer

Site General
Renovation/ Manager
Store outlet
Procurement Production
of Equipment Officer
Business Marketing
Registration Officer
Actual Proponents

It was programmed that the site selection, renovation of the store, purchasing of tools and equipment and registration of
the business will be done in 184 days created program

Phases of Development and Implementation:

a. Conducting feasibility study- 6 months

b. Site Selection- 2 months
c. Renovation of store- 45 days
d. Purchase of tools and Equipment- 45 days
e. Registration of the business- 1 month and 4 days
f. Actual operation
 ARTICLES OF PARTNERSHIP

OF

ECO-GIFT ZONE

KNOW ALL MEN BY THESE PRESENTS:

That we, the undersigned partners, all of legal age, residents and citizens of the
Philippines, have on this day voluntarily associated ourselves together for the purpose of
forming a general partnership under the following terms and conditions and subject to
existing and applicable laws of the Republic of the Philippines:

AND WE HEREBY CERTIFY:

ARTICLE I. Partnership Name: That the name of this partnership

shall be: Eco-Gift Zone and shall transact business under the said company name.

ARTICLE II. Business Purpose: That the purpose/s for which this partnership is
formed is/are:

1. To conduct business related to manufacturing of stuffed toys and pillow made from
recycled materials;

2. To earn additional profit while helping the environment;

3. Help in the economic growth of our province by the way of employment and taxes;
and

4. Be the top provider of this product not only in Daet, but also in all parts of Camarines
Norte.

ARTICLE III. Principal Place of Business: That the principal place of business
of this partnership shall be located at: Boayes St., Daet, Camarines Norte

ARTICLE IV. Term of Existence: That this partnership shall have a term of 50
years from and after the original recording of its Articles of Partnership by the Securities
and Exchange Commission.
 ARTICLE V. Partners’ Circumstances: That the names, nationalities and
complete residence addresses of the partners are as follows:

Name Nationality Complete Residence Address

Abogado, Jerome A. Filipino Purok 5, Brgy. Borabod,

Daet, Camarines Norte

Almacin, Stephanie Mae S. Filipino Purok 4, Brgy. Calangcawan Sur,

Vinzons Camarines Norte

Rafael, Donna Rose C. Filipino Brgy. San Roque, Mercedes,

Camarines Norte

Sayson, Mariz R. Filipino Purok 5, Laniton,

Basud, Camarines Norte

Ligao, Mary Joy S. Filipino P-Burgos St., Brgy. 3,

Daet, Camarines Norte

Maesa, Michelle A. Filipino Purok 4, B4,

Mercedes, Camarines Norte

 ARTICLE VI. Capital Contributions: That the capital of this Partnership shall be
the amount of ____________ (P_________), Philippine Currency, contributed in cash by
the partners, as follows:

Name Amount Contributed

Abogado, Jerome A.

Almacin, Stephanie Mae S.

Rafael, Donna Rose C.

Sayson, Mariz R.

Ligao, Mary Joy S.

Maesa, Michelle

That no transfer of interest which will reduce the ownership of Filipino citizens to
less than the required percentage of capital as provided by existing laws shall be allowed
or permitted to be recorded in the proper books of the partnership.

ARTICLE VII. Sharing Ratios: That the profits and losses of this partnership
shall be divided and distributed proportionately on the ratio of the capital contribution of
each partner.

ARTICLE IX. Management: That this partnership shall be under General

Partnership, as General Manager, who shall be in charge of the management of the affairs
of the company. He shall have the power to use the partnership name and in otherwise
performing such acts as are necessary and expedient in the management of the firm and
to carry out its lawful purposes.

ARTICLE X. Undertaking to Change Name: That the partners undertake to

change the name of this partnership, as herein provided or as amended thereafter,
immediately upon receipt of notice or directive from the Securities and Exchange
Commission that another corporation, partnership or person has acquired a prior right to
the use of that name or that the name has been declared as misleading, deceptive,
confusingly similar to a registered name, or contrary to public morals, good customs or
public policy.
 IN WITNESS WHEREOF, we have hereunto affixed our signatures this ____ day
of ______, 20___, at ________.