Chapter III

Organization and Management Study

Organizations and Management focuses on the study of two things: how

individuals and groups interact within organizations, and how firms interact with one

another and with consumers, employees, communities, and institutions.

It includes the discussion of the basic consideration in forming the organization,

the form of ownership, organizational chart, officers and key personnel and the project

schedule.

Basic Consideration

The proposed project is intended to substantiate a Portable Help Desk

manufacturing business. It is bound to offer a high quality product, affordable and

economical price and useful product among the other school supplies or materials. The

proposed project is also considering a competitive human resource to arrive at the best

results and have a good marketing and production plan, administrative and support

functions of the highly competitive organization and management. It is also set to

establish a strong foundation of marketing organization that will provide the distribution

in a mass marketing environment. It will also do its best to validate the marketing and

distribution strategies that will help the company reach the highest rank of being the

most competitive and efficient company in terms of marketing and distribution through

an efficient allocation and systematic management of the resources, location and

processes.

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Form of Ownership

The proposed business organization is a Partnership Organization composed of

three members. A partnership is a formal arrangement by two or more parties to

manage and operate a business and share its profits. Each partner in this business will

function as a capitalist partner. The profits, liabilities, and even losses in the company

that may be incurred will be equally distributed. This form of business organization has

a greater advantage in this type of industry.

The following are some advantages of Partnership over Sole Proprietorship:

1. More capital is available for the business

2. Easy to establish and start-up costs are lower

3. Two heads (or more) are better than one

4. Combines special skills and experience of the partners

5. Greater borrowing capacity

Capitalization

In finance, capitalization refers to the sum of company’s debt and equity. It

represents the invested capital quantitative in nature that assesses the company’s

capital structure.

The proposed business will have a capital of Php 836,249.00 and each

contributed Php 278,749.67. The amount will be used by the proponents for the initial

operation.

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Organizational Structure

To work efficiently and effectively in the organization, each employee must have

a clear understanding of the organizational structure. An organizational structure is a

system that outlines how certain activities are directed in order to achieve the goals of

an organization. These activities can include rules, roles, and responsibilities.

The organizational structure also determines how information flows between levels

within the company.

The proponents will adopt the line structure of management because the

business activity requires few workers so the manager is responsible for the main

activity or production output.

Officers and Key Personnel

The following are the manpower requirement of the project in the operational

phase. It must be noted that the development and advancement period of the task is

taken care of by the representatives of the development firms that will embrace the

formative period of the venture, thus the workers at the said stage are included in the

section.

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Labor Requirement

Table 14

Manpower Number of Employee

Manager 1
Worker 2
Delivery Person 1
Total Number: 4

Organizational Chart

Figure 6

Manager

Delivery
Worker Worker
Person

MANAGER

Job Description:

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 - The manager is an employee who is responsible for planning, directing and

overseeing the operations and fiscal health of a business unit, division,

department, or an operating unit within an organization. A manager sets goals

for their employees and determines what actions need to take place to

execute the set goals. They organize and divide tasks into activities that can

be accomplished by team members. A manager communicates and motivates

their employees while establishing appropriate methods to evaluate job

performance.

Job Specification:

- Responsible for planning and maintaining work systems, procedures,

and policies that enable and encourage the optimum performance of its

people and other resources within a business unit

- Empower employees to take responsibility for their jobs and goals

- Ensure the health and safety of the workforce

- Ensures the development of the department

- Lead employees to meet the organization's expectations for productivity,

quality, continuous improvement, and goal accomplishment

- Perform other designated tasks as the need arises

WORKER

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Job Description

- The one who is responsible on the production and preparation of items for

distribution. Ensures all machinery runs smoothly and assisting the packaging

and shipment of items to the customers / consumers. They're also tasked to

promote the product to the customers to gain a positive feedback and also for

the company to increase or generate sales.

Job Specifications

- Prepare the materials needed on the production

- Assemble goods on production lines

- Store goods properly in a storage or warehouse

- Manages the inventory

- Arrange products neatly

- Ensures that the products has no defect or damage

- Maintain the cleanliness of work areas

- Perform other designated tasks as the need arises

DELIVERY PERSON

Job Description

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 - A delivery person is someone who picks up, transports, and drops off packages

within a small region or urban area. Most of the time, they transport

merchandise from a distribution centre to businesses and households. Delivers

products and goods safely and efficient to designated location within set

timeframe. Ensures proper handling and deliver high standards of customer

care.

Job Specification

- Conduct inspections of vehicle before departing to deliver goods

- Packs and loads products onto trucks or what kind of transportation the

company has before delivering orders to customers on predetermined routes

- Deliver products with high level of professionalism

- Unload goods as per client specification

- Review deliveries with customers to ensure products meet their needs

- Perform other designated tasks as the need arises

MANAGEMENT PROPOSAL

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 Through advancement of innovation and help of individuals, the association will

positively made progress in creating quality items as well as most particularly in meeting

the goals of the board.

The organization will execute the best administration that will be utilized to

accomplish its objectives without compromising the nature of the items for customer

fulfillment at cost-effective price. The organization will likewise offer safety rules and

guidelines to stay away from accidents and its cost that may results to money related

misfortunes.

TRAINING AND DEVELOPMENT

Training and development describes the formal, on-going efforts that are made

within organizations to improve the performance and self-fulfillment of their employees

through a variety of educational methods and programs.

Specific preparing will be set up for the staffs that are in control for the immediate

work. Since these personnel have the most significant task in the organization a

complete direction and preparing is viewed as essential in accomplishing the standard

quality of the product which are recognize to have the most critical and dangerous

activity.

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COMPENSATION

The salaries of all the personnel in the organization will be based on what was

stated by the Wage Regulatory Board. The position and the types of work of the

employees will be considered internal. It will be given every end of the month.

Table 15

Employee Monthly Annually

Manager Php 9,100 Php 109,200
Worker (2) Php 8,580 Php 205,920
Delivery Person Php 8,580 Php 102,960
Total: Php 26,260 Php 418,080.

PERFORMANCE APPRAISAL

There will be a yearly performance evaluation of all the personnel in the company

and the outcome of the evaluation will be the basis of their performance appraisal.

BENEFITS OF EMPLOYEES

In agreement with the Labor Code of the Philippines, the following benefits

should be given to all individuals employed in the company:

13th Month Pay

Under Presidential Decree No. 851, employers from the private sector in the

Philippines are required to pay their rank-and-file employees a Thirteenth 13th Month

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Pay not later than December 24 every year. The 13th month pay is equivalent to one

twelfth (1/12) of an employee’s basic annual salary.

Sick Leave

An absence from work permitted because of illness. One sick leave is allowed in

a week, but if there is a severe case of illness which may comprise confinement on the

hospital, a medical certificate must be presented.

Maternity and Paternity Leave

Republic Act No. 11210 (RA 11210) also known as the 105-Day Expanded

Maternity Leave Law is a new law, approved on 20 February 2019 and came into effect

shortly after, which increases the standard period of maternity leave benefit in the

Philippines for eligible employees from 60 days to 105 days. 

Republic Act 8187, also known as the “Paternity Leave Act of 1996” was enacted

in order to provide for the well-being of families by assuring that husbands can

effectively exercise their functions as new fathers through a paid work leave of seven

(7) days. Aside from this, the Paternity Leave Act also restricts the benefits of this leave

to married male employees.

SSS

The Philippine Social Security System is a state-run, social insurance program in

the Philippines to workers in the private, professional and informal sectors. SSS is

established by virtue of Republic Act No.1161, better known as the Social Security Act

of 1954.

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Figure 7

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PhilHealth

The Philippine Health Insurance Corporation was created in 1995 to implement

universal health coverage in the Philippines. It is a tax-exempt, government-owned and

controlled corporation of the Philippines, and is attached to the Department of Health.

Figure 8

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PAG-IBIG

The Home Development Mutual Fund (abbreviated as HDMF), more popularly

known as the Pag-IBIG Fund, is a Philippine government-owned and controlled

corporation under the Department of Human Settlements and Urban

Development responsible for the administration of the national savings program and

affordable shelter financing for Filipinos employed by local and foreign-based employers

as well as voluntary and self-employed members. It offers its members short-term loans

and access to housing programs.

Figure 9

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