The Adelphi College

New St. Barangay Poblacion, Lingayen, Pangasinan

College of Education

Program: Bachelor Of Business Administration

Course Code: ELECT 4

Subject: Security Analysis

Learning Module : 002

Name: ____________________________________________________

Date of Submission:

Topic: Unit I

Learning Outcomes:

After studying this unit, you will be able to:

 Define Capital market

 Explain introduction to new issue market

 Discuss functions of new issues market

INTRODUCTION:

Security analysis is a pre-requisite for making investments. In the present day financial
markets, investment has become complicated. Investment may be defined as an activity that commits
funds in any financial/physical form in the present with an expectation of receiving additional return in
the future.

LESSON PROPER:

SECURITY ANALYSIS

Security analysis is the analysis of tradable financial instruments called securities. These are
usually classified into debt securities, equities, or some hybrid of the two. Tradable credit derivatives are
also securities. Commodities or futures contracts are not securities. They are distinguished from
securities by the fact that their performance is not dependent on the management or activities of an
outside or third party. Options on these contracts are however considered securities, since performance
is now dependent on the activities of a third party. The definition of what is and what is not a security
comes directly from the language of a United States Supreme Court decision in the case of SEC v. W. J.
Howey Co.. Security analysis is typically divided into fundamental analysis, which relies upon the
examination of fundamental business factors such as financial statements, and technical analysis, which
focuses upon price trends and momentum. Quantitative analysis may use indicators from both areas.
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New St. Barangay Poblacion, Lingayen, Pangasinan
College of Education

Types of securities

1. Shares

A share is an equity security. Its owner owns one part of the capital of the company which has
issued the shares in question. The shares enable the shareholder the right to take part in the decision-
making in the company. If the latter operates with profit, the owners of shares may receive dividends.
The amount of the dividend is decided upon by the shareholders at a General Meeting of the
Shareholders.

2. Bonds

A bond is a debt security. When purchasing a bond, you have no right to participate in the
company's decision making but are entitled to the reimbursement of the principal and the interest.
There are several ways of repayment as the companies may decide that the principal be paid in regular
annual installments or on the maturity of bonds. The interest may be refunded in a fixed amount or may
be variable (inflation rate or foreign currency). The issuers pay the interest once every year or once
every half-year (on the coupon maturity date).

3. Open-end funds

An open-end fund stands for a diversified portfolio of securities and similar investments, chosen
and professionally managed by a fund management company. Since the fund does not have fixed capital
but is rather 'open ended', it grows together with new investors joining and thus funding it. Open-end
funds can invest in domestic and international securities, in either shares, bonds or other investment
vehicles. Depending on the portfolio, the fund's risk and returns vary accordingly.

3.1. Trading in open-end funds

Open-end funds do normally not trade on exchanges, and there are indeed few exchanges
worldwide where open-end fund shares can be bought; but there are exceptions. Usually, open-end
funds are bought through fund management companies. Investors can invest into the fund via a postal
or a standing order, being charged with an entry fee upon each new purchase and with an exit fee when
they decide to sell their fund units. The other option, however, is to buy through a brokerage firm;
trading in open-end fund shares on an exchange involves no entry or exit fees for investors, as they are
only bound by broker's fees.

4. Index open-end funds

With an index open-end fund, fund management companies allot investors’ assets to a basket of
securities making up a chosen index that thus tracks the yield of the mentioned index. While the big
investors may invest directly into a fund, minor investors can only trade in fund shares on stock
exchanges. Due to the possibility of arbitrage, the market price of index open-end fund shares does
usually not stray from its NAV for more than 1%.
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4.1. Trading in index open-end fund shares on primary market before purchasing index open-end fund
units, a declaration of accession must be signed. After that, assets are transferred to a special fund
account, open at a custodian bank. Upon each purchase and sale, the fund charges appropriate entry
and exit fees

. 4.2. Trading in index open-end fund shares on secondary market Minor investors can buy index open-
end fund shares on the exchange at the price that forms on the market, without entry or exit fees, being
charged solely brokerage fees. Exchange trading of index open-end fund shares does not affect the size
of capital; while the owners of index open-end fund shares change, the fund’s assets remain unaffected.

5. Close-end funds (ID) ID is a close-end investment fund investing its capital into securities by other
issuers. Investment company is managed by a management company (DZU) which decides which
securities to include in the fund's portfolio. The DZU is paid a management fee by the investment
company; it usually amounts to 1-2% per year in Slovenia. The value of shares of the close-end funds is
closely correlated to the value of the company's.

6. Investment certificates

Investment certificates are debt securities issued by a bank, and are designed to offer the
investor an agreed yield under pre-defined conditions stipulated in the prospectus. Issuers are mainly
large banks, and an important criterion in selecting the bank in whose investment certificates you would
like to invest is its credit rating. Investment certificates represent an investment directly linked to an
index, share price, raw material price, exchange rate, interest, industry, and other publicly available
values. The holder of an investment certificate does thereby not become an indirect owner of the assets
underlying the certificate. A certificate ensures the investor a guaranteed manner of payment.
Investment certificates are predictable and the investor can always anticipate their yield (or loss) in a
specific situation, which makes them a successful investment vehicle in times of heavy market losses.
There are different types of investment certificates – some guarantee yields no matter what the
situation on the market, while others yield profit only when the prices fall, etc.

7. Warrants

Warrants are options issued by a joint-stock company, which give holders the right to purchase
a certain quantity of the respective company’s shares at a pre-determined price. After a certain period,
the right to purchase shares terminates.

Fundamental Analysis: Fundamental analysis is primarily concerned with determining the

intrinsic value or the true value of a security. For determining the security’s intrinsic value the details of
all major factors (GNP, industry sales, firm sales and expense etc) is collected or an estimates of earnings
per share may be multiplied by a justified or normal prices earnings ratio. After making this
determination, the intrinsic value is compared with the security’s current market price. If the market
price is substantially greater than the intrinsic value the security is said to be overpriced. If the market
price is substantially less than the intrinsic value, the security is said to be under priced.
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New St. Barangay Poblacion, Lingayen, Pangasinan
College of Education

However, fundamental analysis comprises: 1. Economic Analysis 2. Industry Analysis 3.

Company Analysis

ECONOMIC ANALYSIS

For the security analyst or investor, the anticipated economic environment, and therefore the
economic forecast, is important for making decisions concerning both the timings of an investment and
the relative investment desirability among the various industries in the economy. The key for the analyst
is that overall economic activities manifest itself in the behavior of the stocks in general. That is, the
success of the economy will ultimately include the success of the overall market.

INDUSTRY ANALYSIS

The mediocre firm in the growth industry usually out performs the best stocks in a stagnant
industry. Therefore, it is worthwhile for a security analyst to pinpoint growth industry, which has good
investment prospects. The past performance of an industry is not a good predictor of the future- if one
look very far into the future. Therefore, it is important to study industry analysis. For an industry analyst-
industry life cycle analysis, characteristics and classification of industry is important.

INDUSTRY LIFE CYCLE ANALYSIS

Many industrial economists believe that the development of almost every industry may be
analyzed in terms of following stages

1. Pioneering stage: During this stage, the technology and product is relatively new. The prospective
demand for the product is promising in this industry. The demand for the product attracts many
producers to produce the particular product. This lead to severe competition and only fittest companies
survive in this stage. The producers try to develop brand name, differentiate the product and create a
product image. This would lead to nonprice competition too. The severe competition often leads to
change of position of the firms in terms of market share and profit.

2. Rapid growth stage: This stage starts with the appearance of surviving firms from the pioneering
stage. The companies that beat the competition grow strongly in sales, market share and financial
performance. The improved technology of production leads to low cost and good quality of products.
Companies with rapid growth in this stage, declare dividends during this stage. It is always adisable to
invest in these companies.

3. Maturity and stabilization stage: After enjoying above-average growth, the industry now enters in
maturity and stabilization stage. The symptoms of technology obsolescence may appear. To keep going,
technological innovation in the production process should be introduced. A close monitoring at
industries events are necessary at this stage.

4. Decline stage: The industry enters the growth stage with satiation of demand, encroachment of new
products, and change in consumer preferences. At this stage the earnings of the industry are started
 The Adelphi College
New St. Barangay Poblacion, Lingayen, Pangasinan
College of Education

declining. In this stage the growth of industry is low even in boom period and decline at a higher rate
during recession. It is always advisable not to invest in the share of low growth industry.

Discussion Questions:

1. Discuss financial assets, financial markets, and the role of financial intermediaries

2. Differentiate among equity and debt markets and stock and bond market indexes.

3.What is your implications about the Industry Life Cycle Analysis?

4.As busineman/business woman someday, how can you achieve long term development in your
respective industry?

Reference for detailed study:

1. Donald E. Fischer, “Security Analysis and Portfolio Management”, Prentice Hall Inc. 2. Charles P.
Jones, “ Investments Analysis and Management”, Wiley International. 3. Jack Clark Francis,
“Investments Analysis and Management”, Mc-Graw Hills International. 4. M. Ranganatham, and R.
Madhumathi, “Investments Analysis and Portfolio Management”, Pearson Education.

Prepared by:

Dennis M. Aquino, AB.,MPA..LlB

Instructor
 The Adelphi College
New St. Barangay Poblacion, Lingayen, Pangasinan
College of Education

Program: Bachelor Of Business Administration

Course Code: CB MEC 01

Subject: Operational Management

Learning Module 002

Name: ____________________________________________________

Date of Submission:

Topic: Unit I

Learning Outcomes:

After completing this lesson you will be able to:

1.Understand the concept of Production management

2. Define operations management

3.Explain the Role of managers

4. Understand the Long run decision

Lesson Proper:

Production management, which originally meant the management of production lines, has
today evolved into a comprehensive idea directly related to corporate strategy. The process of evolution
appears to be closely related to the birth of industrial giants having complex production systems. Today
organizations are viewed as systems. A system is a collection of objectives of regular interaction and
interdependence. A systems model of the organization identifies the subsystems or sub-components
that make up the organizations. A business firm might well have finance, marketing, accounting,
personnel, engineering, purchasing, and physical distribution systems in addition to the operations
 The Adelphi College
New St. Barangay Poblacion, Lingayen, Pangasinan
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system. These systems are not independent, but are interrelated to one another in many vital ways. The
systems viewpoint identifies each of these functional areas of the organization as subsystems. Thus
operations stand out as a very important subsystem of the ‘organization’ system. The significance of this
approach is that operations is not viewed as an independent subsystem of any organization; it is rather
considered as an interrelated subsystem that incorporates large emphasis from other subsystems. As a
result the decision makers of any organization always bears in mind the operations function in times of
developing the overall corporate strategies. Similarly, the operations function always adheres to the
goals of the corporate bodies.

The Operations Objectives

The major objective of the operations subsystem is to provide conversion capabilities for meeting the
organization’s goal and strategy. The specific objectives (sub goals) of the operations subsystem are:

A.To define product and service characteristics

B. To define process characteristics To define product/service quality

C. To ensure efficiency in terms of

(a) Effective employee relations and cost control of labor

(b) Cost control of material

(c) Cost control in facility utilization

D.To provide customer service through

(a) Producing quantities to meet expected demand

(b) Meeting the required delivery date for goods & services

E. To ensure adaptability for future survival These operations sub-goals or the objectives can be attained
through the decisions that are made in the various operations areas. Each decision involves important
trade-off between choices about product and process vs. choices about quality, efficiency, schedule and
adaptability. Again the priorities among these sub goals and their related emphasis should be direct
reflection of the organization’s mission. Once again the general thrust of the process is guided by
competitive and markets conditions in the industry, which provide the basis for the organizations
strategy.

Role of Operations Manager

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New St. Barangay Poblacion, Lingayen, Pangasinan
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Operations managers like other managers must guide the efforts of other people in selecting the
organization’s goals and accomplishing its objectives. They may perform some of the tasks they direct,
but when they are performing what are strictly management tasks, their work is to plan and direct the
work of others. Production and operations managers require two main types of decisions - one for the
design of the systems and the other related to the operation and control of the system inclusive of long-
run and short-run decisions. They will have to give emphasis on the factors of cost, service and reliability
of both functional and time performance that depend on the basic purposes of the whole concern and
the general nature of production of goods or services to be rendered. In this way, generally, economic
concerns will most emphasize cost based upon quality and delivery of goods.

Long run decisions base on the production design system. These will be given below:

i) Selection of the product: First of all the product is to be selected to the requirements of
the people to fetch more appeal.

ii) Design of the product: Selection and design are greatly related mutually. They have
interaction of strong nature with capability of the product. The design will create the
appreciability of the people.

iii) Selection of equipment and processes: There are many equipment and processes. The
equipment and processes should be such that concern can cope up within its capital
limit prescribed for the equipment; and processes should be such to cope up design.

iv) Production design of items processed: Production cost interacts greatly with the
design of arts, products, and paper work forms. Design decision mostly set the limiting
characteristics of cost and processing of the system.

v) Job design: Total system design includes many things of which job design is an integral
part. It involves the basic organization of work and the integration of human
engineering data to produce designed jobs optimally. vi) Site of the industry and
business: The decisions about location of the system play an important part if the
balance of cost factors determined by nearness to markets and material supply is
critical. Location should be near to market so that the transportation expenses are not
more and supply of material does not pose any great problem due to seasons.

vi) Facility layout: All decisions regarding design capacity, basic modes of production, shift,
use of overtime and subcontracting. Besides, operations and equipment must be
situated in a pattern that lessens overall material handling cost or meets the needs of
some more complicated criterion. The latter need is most difficult for the complex
intermittent model where routes change. Many detailed problems are connected with
each other so as to specify sufficiently the layout of a production system. These include
heating, lightning and other utility needs, the allocation of storing space and the design
of the building to accommodate the layout.
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Short-run decisions concerning the design of operation and control systems are as follows: i)
Inventory control: Decisions should be made regarding inventory at demand

ii) Production control: Decision should be made relating to allocation of productive capacity
consistent with demand and inventory policy. Feasible schedules must be worked out, and the load on
men and machines and the flow of production should be in control.

iii) Maintenance and reliability of the system: Decisions should be made for the efforts of
maintenance, recognition of the random nature of equipment breakdown and recognition that machine
down-time may itself be connected with important costs or loss of sales.

i) Quality control: While controlling the quality, care should be taken so that defective parts are
not produced and shipped, wage payment systems.

ii) Cost control and improvement: It is the duty of the production supervisors to see that daily
decisions regarding the balance of labor material and overhead costs are done to the
satisfaction up to minimum. The individual production systems change these factors’
importance in production management. No doubt every system faces these problems to some
extent. The equipment policy may cost more where capital investment per labor is more but in
some industries it may not cost more.

The art of operations management includes the sense of the relative importance of the various
problems in a given circumstance or situation. Skills required of the operations managers In trying to
work through others to accomplish the objectives of operations and production, managers must posses
a variety of skills of which two major categories are as follows.

i) Technical competence: Since managers make decisions about the tasks that other
people are to perform, they need a basic understanding of the technology with which
the production system works and they need adequate knowledge of the work they are
to manage. Technical competence can be obtained through personal training and
experience or through the use of staff specialists and consultants.

ii) Behavioral competence: People find that they can achieve more, both in work and in
rewards, by working as a group, rather than by working alone. Management must
consider the social as well as the physical aspects of the work and workers. Since
managers work through others, their work necessarily involves a great deal of
interpersonal contact. A good manager therefore should have good behavioral
competence—the ability to work with other people. Operations manager must posses a
variety technical skills and have the ability to work with others.

Activity:
 The Adelphi College
New St. Barangay Poblacion, Lingayen, Pangasinan
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1. As a production manager do you think that you would face any problem in taking long term
production decisions?

2.What are they?

3.Why these problems might arise?

4.How you can overcome all these problems? Justify.

 The Adelphi College
New St. Barangay Poblacion, Lingayen, Pangasinan
College of Education

Program: Bachelor Of Business Administration

Course Code: MAJOR 101

Subject: ENVIRONMENTAL MANAGEMENT

Learning Module 002

Name: ____________________________________________________

Date of Submission:

Topic: Unit I

Learning Outcomes:

After studying this unit, you will be able to:

 Improved environmental performance and reduced liability.

 competitive advantage and improved compliance - reduced costs ,fewer accidents.

 employee involvement - improved public image - enhanced customer trust

 better access to capital

 The Adelphi College
New St. Barangay Poblacion, Lingayen, Pangasinan
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Introduction:

This is intended to support and facilitate the development of environmental management

systems (EMS) among small and medium-sized organizations. The Guide explains how you can develop
and implement an effective EMS and how it can support your organization’s mission and goals.
Development of an EMS is a voluntary approach to improving your organization’s environmental
performance. The Guide is designed primarily for use by EMS implementers — the people within a small
or medium-sized organization that will lead the EMS development effort. The heart of the Guide is found
in Section 4, “Key Elements of an EMS.” For each of the recommended EMS elements, this section
discusses the importance of the element, how you can get started, and some key suggestions for
implementation. In addition, examples of how other organizations have addressed various EMS
elements are provided in Section 4. The Guide uses the ISO 14001 Standard as a model for an EMS. The
ISO 14001 Standard is the widely accepted official international standard for environmental
management systems. This Guide is not intended for use by registrars (or others) for registration
purposes, nor is it intended to provide specific interpretation of the ISO 14001 Standard.

How this Guide is Organized

Section 1 Describes the many benefits of an EMS and how it can help your organization to compete and
prosper in today’s global marketplace.

Section 2 Summarizes the overall management systems concepts. This section explains what a
management system is and how it can support your organization’s mission

Section 3 Describes the overall process for building an EMS and provides recommendations for planning
the overall EMS development effort

Section 4 Provides detailed guidance on how your EMS should be designed and implemented. This
section discusses each of the key elements of an EMS and how you can put them in place.

Section 5 Describes the process for registering an EMS and selecting a registrar. Section 6 Discusses
other sources of assistance your organization can use to build and sustain its EMS.

Why Your Organization Should Have an EMS

This section explains why an EMS can help your organization to compete and prosper in today’s global
market.

As one of your organization’s leaders, you know that interest in environmental protection and
sustainable development is growing. Like many others, your organization may be increasingly challenged
to demonstrate its commitment to the environment.

Implementing an EMS can help in a number of important ways.

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First, an effective EMS makes good business sense. By helping you identify the causes of environmental
problems (and then eliminate them), an EMS can help you save money. Think of it this way:

• Is it better to make a product right the first time or to perform a lot of re-work later?

• Is it cheaper to prevent a spill in the first place or clean it up afterwards?

• Is it more cost-effective to prevent pollution or to manage it after it has been generated? Second, an
EMS can be an investment in long-term

4. “We found that an EMS could improve employee retention, new hire selection, working conditions,
and the perceptions of our customers, suppliers, lenders, neighbors, and regulators.” - Milan Screw
Products (A 32-person manufacturer of precision fittings) term viability of your organization. An EMS will
help you to be more effective in achieving environmental goals. And, by helping businesses to keep
existing customers and attract new ones, an EMS adds value. Much of what you need for an EMS may
already be in place! The management system framework described in this Guide contains many
elements that are common to managing other business processes, such as quality, health & safety,
finance, or human resources. As you review this you may find that you already have many EMS
processes in place, but for other purposes (such as quality). Integrating environmental management
with other key business processes can improve the organization’s financial and environmental
performance.

The key to effective environmental management is the use of a systematic approach to planning,
controlling, measuring and improving an organization’s environmental efforts. Potentially significant
environmental improvements (and cost savings) can be achieved by reviewing and improving your
organization’s management processes. Not all environmental problems need to be solved by installing
expensive pollution control equipment. Of course, there is some work involved in planning and
implementing an EMS. But many organizations have found that the development of an EMS can be a
vehicle for positive change. These organizations believe that the benefits of an EMS far outweigh the
potential costs . As they say in the Total Quality Management (TQM) world, “quality is free” — as long as
you are willing to make the investments that will let you reap the rewards. The same holds true for
enviromental management.
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If your organization already has or is considering a quality management system (such as ISO
9000), you will find some significant synergy between what you need for quality management and for
environmental management.

Note:

Small and medium-sized organizations often have some advantages over larger organizations in
ensuring effective environmental management. In smaller organizations, lines of communication are
generally shorter, organizational structures are less complex, people often perform multiple functions,
and access to management is simpler. All of these can be real advantages for effective environmental
management.
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New St. Barangay Poblacion, Lingayen, Pangasinan
College of Education

Se
ction 2: Key EMS Concepts This section explains what a management system is — and how it can help
your company.

You have probably heard of Total Quality Management (TQM). Your organization may apply
TQM principles to some or all of its operations and activities. An effective EMS is built on TQM concepts.
To improve environmental management, your organization needs to focus not only on what things
happen but also on why they happen. Over time, this systematic identification and correction of system
deficiencies leads to better environmental (and overall business) performance. Most EMS models
(including the recently issued ISO 14001 Standard, which will be described later) are built on the “Plan,
Do, Check, Act” model introduced by Shewart and Deming. This model endorses the concept of
continual improvement.

In the ISO 14001 EMS Standard, these “plan, do, check, act” steps have been expanded into seventeen
EMS elements. Each element is discussed in Section 4 of this Guide. Putting TQM principles into practice
in the environmental area is the job of top management. To build and sustain an effective EMS,
management must communicate to all employees the importance of :

• making the environment an organizational priority (thinking of effective environmental management

as fundamental to the organization’s survival)
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• building environmental management in everywhere (thinking about the environment as part of

product and process development, among other activities)

 Looking problems as oppurtunities

The concept of continual improvement recognizes that problems will occur. But a committed
organization learns from its mistakes and prevents similar problems from occurring in the future. An
effective EMS must be dynamic to allow your organization to adapt to a quickly changing business
environment. For this reason, you should keep your EMS flexible and simple. This also helps make your
EMS understandable for the people who must implement it — you and your organization’s employees.
As you build and implement an EMS, some roadblocks may be encountered. Some people in the
organization may view an EMS as bureaucracy or extra expense — an “add-on” to what you do now.
There may be resistance to change or fear of new responsibilities. To overcome these potential
roadblocks, make sure that everyone understands why the organization needs an effective EMS and how
an EMS will help you control environmental impacts in a cost-effective manner. Getting people involved
in designing and implementing the EMS will demonstrate the organization’s commitment to the
environment and help to ensure that the EMS is realistic, practical and adds value. Building or improving
your EMS (with the help of this Guide) is a great opportunity to assess how your organization manages
environmental obligations and to find better (and more cost-effective) solutions. While you will probably
identify some areas where your current EMS can be improved, this does not mean that you should
change things that are working well ! By reviewing what your organization does and how well it works,
you can ensure that your EMS will be viable and effective, both now and in the future. Don’t get
discouraged if your system has some bugs at first — this is to be expected. Remember, the focus is on
continual improvement

Section 3: Step-by-Step Action Plan

This section explains the process of building an EMS.

Building an EMS might sound like an overwhelming task for a small organization, but it need not
be. Time and other resources are limited in any small organization, so it is important that your resources
are used wisely. One way to do this is by following a simple, effective plan. Fortunately, you can build on
the experiences of other organizations who have already implemented an EMS. Examples are provided
throughout this Guide .

The importance of careful planning cannot be overemphasized. Taking the time to figure out
what you need to do, how you will do it, and which people must be involved will pay big dividends down
the road. Using a team approach for building your EMS is a good way to improve commitment and
ensure that the objectives, procedures and other system elements are realistic, achievable, and cost-
effective. Ideas for using your team and involving employees are discussed on the following pages. A few
hints to keep in mind as you build your EMS:
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• Help is available — don’t hesitate to use it. (See Section 6 of this Guide for more on
resources.)

• Consultants can provide help in evaluating your EMS and suggesting approaches used
successfully elsewhere. Look for ways to hold consulting costs down. For example, you may be able to
join forces with other small businesses in your area to hire a

• Look at your existing environmental compliance plans and programs to assess how effective
they have been and how they might be improved

Creating Your Own EMS:

Key Steps The first step in the EMS-building process is gaining top management’s commitment
to supporting the EMS. Management must understand the benefits of an EMS and what it will take to
put an EMS in place. Management commitment and vision should be clear and communicated across
the organization. Not all small or medium-size organizations have the luxury of choosing among multiple
candidates, but your choice of project champion is critical. The champion should have the necessary
authority, an understanding of the organization, and project management skills. The champion should
be a “systems thinker” (some ISO 9000 experience would be a plus, but is not necessary) and must have
the time to commit to the EMS-building process. The project champion should prepare a preliminary
budget and schedule for developing the EMS. Costs will likely include staff and employee time, training,
some consulting assistance, materials, and possibly some equipment (such as a computer or word
processor). The schedule should consider the various tasks described below, among others. A team with
representation from key management functions and production or service areas can identify and assess
issues, opportunities, and existing processes. You may want to consider including contractors, suppliers,
and other external parties to be part of the project team where appropriate. This team will need to
meet frequently, especially in the early stages of the project. The cross-functional team can help to
ensure that procedures are reasonable and will build commitment to the EMS. Employees are a great
source of knowledge on environmental and health & safety issues related to their areas as well as on the
effectiveness of current processes and procedures. They can help the project team in drafting
procedures. Employee ownership of the EMS will be greatly enhanced by meaningful employee
involvement in the EMS development process.

The next step is to conduct a preliminary review of your current environmental programs and
system and compare these against the criteria for your EMS (such as ISO 14001). Evaluate your
organization’s structure and its procedures, policies, environmental impacts, training programs, and
other factors. Determine which elements of your current system are in good shape and which need
additional work. The project plan might need to be modified based on the results of the preliminary
review. The modified plan should describe in detail the key actions needed, who will be responsible,
what resources are needed, and when the work will be completed. At this point, you are ready to
develop procedures and other system documents. In some cases, this might involve modifying existing
environmental procedures or adapting other business procedures (such as quality or health & safety
 The Adelphi College
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management procedures) for EMS purposes. In some cases, you might need to develop new procedures.
Get help from employees and the cross-functional team, as discussed above. In building your EMS, make
sure that the system is sufficiently flexible. While you will likely need to modify your EMS over time, try
to avoid making your EMS so rigid that you must change it frequently to reflect the realities of your
operation. Once the procedures and other documents have been prepared, you are ready to implement
the EMS. As a first step, train your employees on the EMS, especially with regard to the environmental
impacts of their activities, any new / modified procedures, and any new responsibilities. After the EMS is
up and running, be sure to assess system performance. This will be accomplished through periodic EMS
audits and ongoing monitoring and measurement. Assessment of EMS performance provides the
opportunity to improve the system and your environmental performance over time.

Activity:

1.Why do we need an environmental management system?

2. Explain the concept of Plan,Do , Check , Act model?

3. How EMS it can help our organization to compete and prosper in today’s global marketplace?

References:

Philip J. Stapleton, Principal Glover-Stapleton Associates, Inc. Anita M. Cooney, Project Manager NSF
International William M. Hix Jr., Intern NSF International.

Prepared By:

DENNIS M. AQUINO,A.B,MPA,LLB.

Instructor