Chapter IV

Management Study
Management is a distinct process consisting of activities planning, organizing,
actuating, and controlling, performed to determine and accomplish stated objectives
with the use of human beings and other resources. (Terry and Franklin, 1994)
This chapter will measure the capability of the management to fulfill the duties of
establishing a whole company, showing their abilities to achieve their goals. This
chapter will include the form of business ownership, capitalization, organizational
structure, organizational policies, and legal requirement.
Objectives
The general objective of the study is to design the management system be used
by the firm to be able to achieve its goals and it aimed to discuss the following:
1.To determine the form of business ownership that the firm will operate;
2.To calculate the amount of capital each partner will invest and the needed working
capital in putting up the proposed business;
3.To develop an organizational set up applicable to efficiently and effectively
management of the operation;
4.To determine the manpower requirements and identify their corresponding
compensation;
5.To construct organizational policies that will serve as a guide in operating the
business; and
6.To discuss the legal requirements needed in putting up a business.
Form of Business Ownership
The proposed business established by partners namely: Rhoella Dizon, Shermine
Sartaguda, Carla Corpuz, Mary Joy Tolentino, Genie Vieb Bejer, Marie Diala and Jorgia
Solano will be in the form of partnership. They decided to operate the business in the
form of general partnership named JGRCSM Home Designs. They choose general
partnership because it suits them since there are only a minimal number of investors
and they just started a small business. A general partnership is a business arrangement
by which two or more individuals agree to share in all assets, profits, and financial and
legal liabilities of a jointly owned business. In a general partnership, partners agree
to unlimited liability, meaning liabilities are not capped and can be paid through the
seizure of an owner's assets. Furthermore, any partner may be sued for the business's
debts. (Bloomenthal, 2020)
 As agreed on the contract, all partners will contribute money and properties to
form the business. All assets, profits and liabilities that are related to the business will
be divided equally to all the members of the partnership.
Capitalization
The same as other businesses, capital is the most important thing to consider
when establishing a business. The capital is used in settling all the requirements and
other needs in forming a business. Without the capital, a business would not exist. The
contribution of all the partners will be used to establish the business.
Table 4.1
Partners Contribution Table
Partners Contribution
Dizon, Rhoella Php 26,897.29
Sartaguda, Shermine 26,897.29
Corpuz, Carla 26,897.29
Tolentino, Mary Joy 26,897.29
Bejer, Genie Vieb 26,897.29
Diala, Marie 26,897.29
Solano, Jorgia 26,897.29
Total Php 188,281.03

To start the business, JGRCSM Home Designs need a big capital. Table 4.1
shows the equal contribution needed to be collected for each of the partners. The total
amount of capital needed is Php 188,281.03 and divided to all of the partners which
cost Php 26,897.29. The total amount of the capital is the projected cost for the first
year of the business.
Organizational Structure
This structure is created to set up how an organization works and helps an
organization in getting its objectives to permit for future development. It could be
a framework utilized to characterize a chain of command inside an organization.
It distinguishes each work and where it reports to within the organization.

Manager

Worker 1 Worker 2
 Figure 4.1
Organizational Structure
JGRCSM Home Designs used a line organizational structure so that they can
easily determine the responsibility of every member of the organization. The figure
shows that the manager’s authority goes to its workers. The manager is the one who
perform planning, organizing, staffing, directing, and controlling. To run the organization
effectively and smoothly all these functions are needed. While the workers are also
playing an important role in an organization, they are the one who physically carry out
the work. The performance of the organization depends on how productively the
workers performs their work.
Manpower Requirements
One of the most critical components of a successful company is manpower. The
company’s staff is represented by the manager and workers they’ll be in-charge of
overseeing and producing the goods that their customer needs.
To meet the requirements of the customer they have to carry out their roles,
obligations and responsibilities. Job descriptions and duties must be kept up to date in
order to ensure this.
Job Description
A job description is usually generated after a job review, which involves looking
at the tasks and sequences of tasks needed to complete the job. The study looks at the
experience, skills, and abilities required to do the job. Although the person/work
specification may be viewed as a separate document, it is most commonly found within
the job description. Employers often use a job description in the recruiting process.
Manager
The duties and responsibilities that a manager should do were as follows:
 Assume responsibility for the overall activity of the company, comply with its
mandate, vision, priorities, objectives, guiding principles and other directives.
 Must be a good decision-maker.
 Successful marketing strategies must be developed for the company.
 Build successful marketing strategy for the promotion and growth of the
organization.
 Must be in-charge of the workforce and have full control over them.
 Must build and maintain a friendly working atmosphere for the team.
 To prevent confrontation, workers must cultivate a spirit of collaboration and
solidarity.
Worker
 Must be able to read and understand simple instructions provided.
 No prior work experience is needed, but they must complete the necessary training.
 A high school diploma is required.
 Must be at least 18 years old.
 Must be hard working, trustworthy, and morally upright.
 Physical and mental fitness are needed.
Organizational Policies
Every company sets its own policies, which have been proven to be successful.
Practiced by all levels of management, from the manager to the staffs and employees to
achieve uniformity, advantages, and goals of the company.
JGRCSM Home Designs has implemented the following policies:
I. Personal Policies
1. All workers should start working at 9:00 am until 5:00 pm.
2. Each worker will be working 8 hours from Monday to Saturday.
3. Any minute that an employee exceeds from the start of the working hours will be
marked as late.
4. Each employee has a lunch break from 12:00 pm to 1:00 pm.
5. All employees are not allowed to absent without leave or prior notice to the
management.
II. Production Policies
1. All workers inside the production area must wear proper attire including uniforms,
gloves, and facemasks.
2. All workers must wash their hands or sanitize first for the proper hygiene and
safety.
3. Before starting to make the products make sure that the tools needed for the
production are already prepared.
4. All workers must prevent having damages on the products until the delivery to
the clients.
5. All products that will be produced must be handled with care.
III. Safety Rules and Regulations
1. Employees must be mindful of the organization’s safety rules and regulations.
 2. Ensuring that occupational well-being and working conditions are closely
monitored in order to avoid sickness and injuries.
3. Providing the required guidance, supervision, knowledge, and training to protect
employees from work related risks to health and safety.
4. All identified or detected hazards should be reported to their supervisors.
5. A first aid kit should always be on-hand.
6. All incidents and near misses should be reported right away.
IV. Retailers Policies
1. Retailers may position orders using order slip, phone calls or via e-mail.
2. Retailers may pick-up the product to our store or ask for delivery.
3. Retailers are required to pay the total cost of the product sold.
4. Products purchased in our retail stores cannot be returned nor refunded, unless
there is damage pr the given item is incorrect.
5. Before being delivered to retailers, the product must first undergo quality
inspection.
V. Customers Policies
1. Customers can purchase through google forms, via e-mail or via sending direct
messages on our official social media accounts.
2. If there should be an occurrence of deformity in the item, customers are allowed
to return it within three days from the day they had received the item.
3. For comments and suggestions, customers can leave a feedback on our social
media accounts by using our hashtag (#JGRCSMfeedbacks) or by tagging us.
VI. Suppliers Policies
1. There should be a composed agreement concurred and endorsed by both the
retailers and the suppliers.
2. Suppliers must maintain the confidentiality of the information provided by
JGRCSM Home Designs.
3. Suppliers should regard and focus on consistence with materials fair control
guidelines.
4. Suppliers should evade all irreconcilable situations while engaged with JGRCSM
Home Designs and its clients, and promptly report any potential or conflict to
JGRCSM Home Designs.
5. Brief installments of its payables will be executed.
Legal Requirement
The proposed business to be established needs to secure the necessary
documents by having transactions with some government and private agencies done by
the proponents of the firm.
 The business firm must conform to the following requirements to have its legal
identity:
I. Filling of the articles of Partnership to Securities and Exchange Commission
(SEC)
When the capital of the business firm is more than P 3,000.00, it must be dully
registered with Securities and Exchange Commission (SEC). This registration is a
condition for the issuance to the partnership of the business license to engage in
business. The partnership agreement is embodied in the Articles of Partnership which
must be registered to the Securities and Exchange Commission.
Listed below are the following requirements for registration of the partnership with
SEC:
 Articles of Partnership (for limited partnerships, this should be executed under
death)
 Articles of Co-Partnership
 Partnership Agreement
 Name Verification Slip Form
 Accomplished Registration Data Sheet
 Written Undertaking to change Corporate Name
 Registration Clearance
 Registration fee based on capital contribution
 In case, contributed capital is in the form of real property, additional requirement
is needed;
 Deed of Assignment executed by the stockholder who is the owner.
II. Registration of the Business
The business name of JGRCSM Home Designs: Manufacturer of Wire Art must
be registered to the Department of Trade and Industry and to the Securities and
Exchange Commission.
The following are the necessary requirements in applying for the Certificate of
Business Name Registration:
 Accomplished application form
 1 valid ID
III. Acquisition of Barangay Clearance
The business firm must secure a copy of barangay clearance for the application
of its operation.
IV. Application for Mayor’s Permit
 The following are the requirements must be complied for the application of
Mayor’s permit:
 Sketch of the location of the business.
 Accomplished Business Permit Application Form
 Barangay Certification for business operation (3 copies) with Official Receipt
 Community Tax Certificate/Corporate Community Tax Certificate
 Certificate of Real Property Tax Payment
 Sanitary Permit
 Occupational Permit
 Market Certification (if located at Public Market)
 Lease Contract (if rented)
 Location Clearance issued by City Planning and Development Office (CPDO)
 Photocopy of DTI Registration/SEC Registration
 Fire Safety Inspection Certificate
 Veterinary Clearance
 SSS Clearance
 2 pcs. 2x2 colored ID Picture
V. Registration with the Bureau of Internal Revenue for Income Tax Exemption
The firm must be registered at the Bureau of Internal Revenue to recognize its
existence as an income generating enterprise and to comply with the tax regulations.
The following are the requirements and procedures to be complied for BIR registration:
 Get Tax Identification Number (TIN)
 Secure Registration Certificate:
 DTI Registration
 SEC Registration Certificate
 Mayor’s Permit (Photocopy)
 Submit requirements and apply as VAT or non-VAT taxpayer.
Table 4.2
Fees and Licenses
Particulars Amount
SEC Registration 500.00
BIR 500.00
Mayor’s Permit 250.00
Business Tax 100.00
Medical Fee 200.00
Zoning Fee 1,400.00
Fire Inspection Fee 584.00
Garbage Fee 1,000.00
Business Plate Fee 130.00
Annual Inspection Fee 650.00
Total Php 5,314.00