Chapter IV

MANAGEMENT STUDY
Management is a single or group of individuals who challenges and oversees a person or
collective group of people in efforts to accomplish desired goals and objectives. Furthermore,
the definition of management includes the ability to plan, organize, monitor and direct
individuals. The management definition is also a person or collective group who possess the
executive abilities to lead a group through hardships, aspiring to meet an organization’s
purpose and visions. (Wilkinson, 2018)
Objectives of the Study
The general objective is to identify the management feasibility of the proposed project by
knowing the appropriate form of business organization with the help of the legal requirements
for the business to operate. The objectives are as follows:
1. To identify and describe the appropriate form of business organization that will be used by
the proponents.

2. To identify the initial capitalization that should be contributed by each partner to start the
proposed business.

3. To create the rules and guidelines that will help in the operation of the business.

4. To create an organizational structure that shows the relationship of all the

people in the company.

5. To identify the legal requirements needed for the establishment of the firm.
Form of Business Ownership
A partnership is an arrangement where parties, known as partners, agree to cooperate to
advance their mutual interests. The partners in a partnership may be individuals, businesses,
interest-based organizations, schools, governments or combinations. (Wikipedia.com) The
proponents agreed to contribute equal amount of capital and pay the possible liabilities up to
the extent of the proponents’ personal properties. Therefore, it can be classified as a general
partner.
Karl Christopher Abrenica will be the managing partner. Hazel Castillo will be the cook in
charge while Jhon mark Ilagan and Ziera Love Punzalan will share the skills and knowledge as
well as the capital to start the proposed business. In relation to this, the proponents will also
bear the risks, liabilities, problems that could be made during the operation and the profit in
equal ratio.
Capitalization
Capital is one of the most important things to be considered before establishing a business.
The partner will provide Php6,400,000 as a capital requirement. Each proponent will have
capitalization of Php1,600,000 that will come from each partners’ personal savings. The
proponents must provide
enough capital for the tools, Capitalization
materials and supplies needed for
sufficient cash to pay the
opportunities expenses.
Proponents
Abrenica, Karl Christopher M. Php1,600,000
Ilagan Jhon Mark S. Php1,600,000
Castillo, Hazel C Php1,600,000
Punzalan, Ziera Love Php1,600,000
Total Php6,400,000.00
Table 4.1
Contribution of Partners
Table 4.1 shows the partners’ equal contribution of Php1,600,000.00 each that amounts to the
total capitalization of Php6,400,000.00.
Organizational Structure
Organizational structure is a system used to define a hierarchy within an organization. It
identifies each job, its function and where it reports to within the organization. This structure is
developed to establish how an organization operates and assists an organization in obtaining
its goals to allow for future growth. The structure is illustrated using an organizational chart.
(Lucy 2018)
Organization will comprise a manager, which will be performed by one of the proponents of the
business; the cook also from the proponents, four part time workers and a part time
bookkeeper within the structures. The employed numbers of workers are subject to adjustment
as demand of Unli Pasta and Sweets in the future.

Figure 4.1
Organizational Chart
Unli Pasta and Sweets Resto
Figure 4.1 shows the organizational chart that will be used by the firm for the efficient flow of
processor and its effective management. This shows that the cook and the part time
bookkeeper are subject to report to the manager who is one of the partners of the business.
The lines that connect the manager define the direct command chain of the cook to the
manager. The same positions of the workers in the chart show that the workers have equal
position to each other. The broken line that connects the bookkeeper to the manager and
workers to the cook indicates a part-timestatus.
Manpower Requirements
The organizational chart of the business is composed of employees that should have the
knowledge and abilities that can help the business to operate well.
The management should have the qualification of the employees to know whether this employee is
suited or compatible to the assigned job. The proponent should state the qualifications, duties and
responsibilities of every employee in the company. The organization needs manager to manage the
business and a bookkeeper who can keep the business transaction records, the cook to manage the
food production and four (4) workers who are capable in operating the production process.

Employees Needed Number Required

Manager 1
Bookkeeper 1
Cook 1
Workers 4
Table 4.2

Manpower Requirements

Job Description

It is a statement that outlines the specific of a particular job or position with a

company. It goes into details about the responsibilities, duties, skills and
theconditions of the job. The organization typically performs a job analysis that looks at the job
in depth to create a comprehensive description of what the job entails. (Frost, 2019)
Each employee in any business is hired to do specific tasks in the operation of the business in
order to achieve the set goals and objectives.The responsibilities are set depending on position
of the employee in the organization.
Manager
 Recruiting, training, supervising and appraising staff
 Managing budget

 Maintaining statistic and financial records

 Dealing with customer queries and complaints

 Overseeing pricing and stock control

 Maximizing profitability and setting/meeting sales targets including motivating staff to do so

 Preparing promotional materials and displays

Cook
 Setting up the kitchen with the tools and ingredients needed

 Responsible for cooking the dishes to be served

 Prepares food for the customers

Manages other employees in the kitchen

Workers
 Prepare the needed raw materials and tools for production

 Serves the food to the customers

 Meet the demand schedule in line with the quality standard

 Inform the manager about the problems concerning the operation

 Takes instructions from cook and manager

Bookkeeper
 Monitors office supply levels and reorder as necessary

 Tags and monitors fixed assets

 Takes all reasonable discounts on supplier invoice

 Records all business transaction, receipts and disbursement and compile business
documents

 Visits the business at least twice a month

 Maintains the annual budget

Job Specification
Detailed description of the qualifications, skills, and experience required for a particular post of
employment. (HarperCollins Publishers)
A job specification defines the knowledge, skills and abilities that arerequired to perform a job
in an organization. Job specification covers aspects like education, work-experience,
managerial experience, etc. which can help accomplish the goals related to the job. Job
specification helps in the recruitment & selection process, evaluating the performance of
employees and in their appraisal & promotion. Job specification, along with job description, is
actually derived from job analysis. Collectively, job specification and job description help in
giving a overview of the job in terms of its title, position, roles, responsibilities, education,
experience, workplace etc. (Youjoomla, 2008)
Manager
 At least 21 years old

 Must be a college graduate (preferably business course)

 Processes adequate managerial and entrepreneurial skills

 Must have excellent oral and written communication skills

 Must know how to handle employees

 Must be capable in detecting market trends

 Must be good at decision making

 Must be hardworking, honest with good moral character

Cook
 At least 20-35 years old

 Must be good at picking ingredients

Must know how to cook Filipino viands

 Must be good at food handling

 Must be hardworking and disciplined enough

Workers
 Must be 18 – 35 years old

 At least high school graduate

 Must be honest and hardworking

 Must be punctual at all times

 Must know how to serve food

 Must be physically and mentally fit

 Must possess good moral character

 Must be physically and mentally fit

Bookkeeper
 Must be 21 years old

 Must be graduate of accounting course or any business-related course

 At least one year experience in the said field

 Must be capable of preparing a reliable financial reports

 Must have the knowledge of accounting techniques and procedures

 Must have knowledge of maintaining account balance and reporting of status

Compensation
This defined as the total remuneration, in cash or in kind, payable by an employer to an
employee in return for work done by the latter during an accounting period. (ESA 2010,
Paragraph 4.02) Compensation of employees consists of wages and salaries in cash or in kind
(D.11) and employer's actual and imputed social contributions (D.121 and D.122).
Compensation is a form Monthly Annually
of monetary benefit
given to the employees.
This may differ
depending on the
status of the business
and the regulation of
the government. In
addition, the manager,
workers will be paid
based on the skills and
abilities each one
possess. All the
employees will receive
their salaries every 30th
day of the month.
Position
Manager 15,000 180,000
Cook 12,000 144,000
Part-time Worker 1 6,300 75,600
Part-time Worker 1 6,300 75,600
Part-time Worker 1 6,300 75,600
Part-time Worker 1 6,300 75,600
Part-time Bookkeeper 2,500 30,000
Total Php656,400
of Compensation

Table 4.3 shows that the four (4) workers will receive Php6,300 per month.

Annually, a total of Php75,600 will be received by each worker. The managing partner will
receive Php180,000.00 annually while the part- time bookkeeper will received Php2,500.00 per
month and Php30,000.00 per year. The business will incur a total of Php656,400 for the salary
expense.
Other Benefits
Compensation can be extended to other forms of remuneration benefits other than the salaries
and wages of the employees such as 13th month pay, SSS, Pag-ibig, and Phil Health in order
for the employees to attain the outmost safety, security and to give them the purpose of
motivation and at same time, a compliance with the government employee.
Organizational Policies
A business organization must set specific rules and regulations to be followed to have a
systematic organization that will lead to the success of the employees, customers, and
supplier’s policies. The following are the policies set up by AICP Partnership.
1. Each worker is expected to come to work on time from 9:00 am to 3:00 pm for the morning
part-timers and 3:00 pm to 9:00 pm for the afternoon part-timers.

2. Some unethical behaviors of the employees such as tardiness and absenteeism will be given
a written warning, suspension, and /or

termination.

 For the first offense, a written warning and incident report will be issued to the concerned
employee.

 For the second offense, a suspension of 2 days will be imposed.

 For the third offense, notice for termination will be issued to the employee.
3. Three times unexcused tardiness will be equivalent to 1 day unexcused absence and will be
deducted from their compensation.
4. If an employee will be absent, he must notify the manager at least 2 hours before the
absence.
5. Every employee should be at the site five minutes before his or her work.
6. Business ethics with fellow employees must be observed.
7. Salaries and wages of the workers will be paid every 30th day of the month.
8. Proper disposal of waste should be observed.
9. Cleanliness and orderliness of the resto must be maintained.
Policies towards the Customers
1. The customers are free to drop written questions, comments and suggestions regarding the
product in the drop box located at the same premise.

2. If a customer has leftover on the plate, the customer will paid another half of the price
amounting to Php92.50.

3. The business is not liable to any allergic reactions of the customers from the products
especially when any possible allergic contents are stated to the customers before the customer
pay.
Policies towards the Supplier
1. The raw materials must be delivered within the specified time based on monthly purchase
schedule.

2. The forms and conditions between the suppliers must be clearly stated to avoid conflicts.

3. Damaged supplies will be returned immediately after inspection and will be replaced by
another of same quality.

4. Since the firm has not yet established a good credit rating, purchases will be on cash basis
probably for six (6) months.

Legal Requirements
Establishing a business requires certain considerations before its actual operation. One of
those that need to be accomplished is legal requirements for the registration of the business.
Avoiding conflicts regarding the existence and execution of the firm’s operation, Unli Pasta and
Sweets Resto ensures that it conforms to the following requirements.
I. Registration of Barangay Micro Business Enterprise (BMBE) To be a member of Barangay
Micro Business Enterprise (BMBE), the following requirements must be secured:
1. Application form signed by the owner or manager of the entity, applying for registration
(BMBE Form 01);
2. One (1) picture of the owner in case of single proprietorship and of the manager in case of
the other types of business entity;
3. Sworn statement of assets owner and or to be used or the product of the business in
triplicate(BMBE Form 01);
4. Tax identification number (TIN)of the applicant; and
5. In case of judicial person, a copy of its parties of incorporation or corporation of partnership.
II. Registration of the Partnership to Securities and Exchange Commission
When the partnership capital is Php_.00 or more, in money or in property, the public instrument
must be recorded with the Securities and Exchange Commission (SEC) and will pay Php_.00
for registration. Here are the basic steps to follow:
 Have the proposed business name verified in the verification unit of SEC; and

 Submit the following documents:

To be a member of Barangay Micro Business Enterprise (BMBE), the following requirements
must be secured:
1. Application form signed by the owner or manager of the entity, applying for registration
(BMBE Form 01);
2. One (1) picture of the owner in case of single proprietorship and of the manager in case of
the other types of business entity;
3. Sworn statement of assets owner and or to be used or the product of the business in
triplicate(BMBE Form 01);
4. Tax identification number (TIN)of the applicant; and
5. In case of judicial person, a copy of its parties of incorporation or corporation of partnership.
II. Registration of the Partnership to Securities and Exchange Commission
When the partnership capital is Php_.00 or more, in money or in property, the public instrument
must be recorded with the Securities and Exchange Commission (SEC) and will pay Php_.00
for registration. Here are the basic steps to follow:
 Have the proposed business name verified in the verification unit of SEC; and

 Submit the following documents: