Organization and Management Aspect

Type of Organization

Kasaka Agri-Supply Enterprise will be a partnership. This type of business organization is

relatively easy to establish because of lower start-up costs and lesser legal requirements than
of a corporation. There will be four partners in Kasaka Agri-Supply Enterprise. One will be an
industrial-capitalist partner to monitor the business on a regular basis, while the other three
shall be capitalist partners.

Partnerships allow pooling of larger funds while minimizing business risks as these are split
among the partners. To fully enjoy the perks of being a partnership in the Philippines, this shall
be registered in the Securities and Exchange Commission with the necessary documentary
requirements such as Articles of Partnership among others.

Organizational Structure

The proposed business will not require a complex organizational structure as it only needs few
employees. However, delineation of responsibilities must be given, hence, there still needs to
have one. Kasaka Agri-Supply Enterprise aims to use a line organization where there is a simple
and vertical flow of relationships among the employees and the partners. Authority flows from
the partners to the employees and responsibility for the tasks if fixed upon specific individuals.

The organizational structure of Kasaka Agri-Supply Enterprise shall be as follows:

Partners

Manager

Cashier Laborer
Personnel and Laborer Structure

Kasaka Agri-Supply Enterprise shall be classified under Micro, Small and Medium Enterprises,
specifically a micro enterprise, due to its less than 10 employment level range and its asset size
of under 3 million pesos.

There will be one cashier and two laborers who directly report to the manager (also the
industrial-capitalist partner). Given the high cost of hiring an accountant, the partners decided
to outsource accounting functions to an accounting firm that is based in Gapan City. The
industrial-capitalist partner then meets with the partners to discuss business operations. On the
other hand, the partners (including the industrialist-capitalist partner) decide the major policies
to be implemented on Kasaka Agri-Supply Enterprise.

Duties and Responsibilities

The duties and responsibilities of the personnel and the partners of Kasaka Agri-Supply
Enterprise are listed in the below table:

Personnel Qualifications Responsibilities

Laborer Between 18 to 35 Cleaning and preparing store area for business.
years old Loading and unloading goods for delivery and for
Can read and storage.
write Delivering goods to customers.
Physically fit Assisting customers in selecting farming supplies.
With Driver’s Assisting in inventory counting of farming supplies.
License Following manager’s other orders from time to time.

Cashier 18 to 35 years old Process transactions and issue receipt to customers.

At least Senior Collects payments by accepting cash and depositing
High School such to the drawer.
Graduate – ABM Resolves customer issues and answers questions.
strand Prepares daily sales reports to manager.
Reconcile cash on the drawer and receipts at the
end of business day.
Cleaning and preparing store area for business.
Following manager’s other others from time to time.

Manager Industrial- Marketing

capitalist partner
Implementing marketing strategies to increase
awareness farmers on the existence and services
offered by Kasaka Agri-Supply Enterprise.
Dealing and completing transactions with customers.
Sending complimentary gifts to farmers on
 Personnel Qualifications Responsibilities
Christmas.
Inventorial

Facilitating periodic inventory count.

Monitoring inventory levels and ensuring that
inventories as sold FIFO.
Placing orders from authorized distributors.

Administrative
Selecting applicants for hiring of partners
Training of new employees
Conducting performance evaluation of business and
employees.
Present daily sales reports to partners.
Deposit cash earned by the business daily.
Ensure internal controls are implemented.

Partner Listed in the Adhering in the responsibilities listed in the Articles

Partners’ Profile of Partnership.
Qualification Formulating marketing strategies for
implementation.
Making key decisions on business operations based
on the financial and sales reports.
Complying with legal and regulatory requirements
for business operations.
Infusing of additional capital requirements if
needed.

Compensation Scheme

The compensation scheme for the employees of Kasaka Agri-Supply Enterprise shall follow the
daily minimum wage rates mandated by the National Wages and Productivity Commission for
Central Luzon. The two laborers and the cashier shall be covered by Social Security System,
HDMF and Philhealth, while the partners shall opt for voluntary filing. It should be noted that
employee share of these contributions shall be deducted from their basic pay. Filing of these
government contributions shall be done by the outsourced service of the accountant. Payment
of these salaries will be done twice monthly, on the first and last Mondays.

On the other hand, the manager shall receive an allowance to commensurate his service to
Kasaka Agri-Supply Enterprise. That will be treated as partner’s drawings. Partners, on the other
hand, shall share on the profits earned after tax. A more comprehensive compensation scheme
is illustrated in the following table:
 Personnel Daily wage COLA Philhealth SSS PAG-IBIG TOTAL Monthly
Laborer 395 30 5.43 34.91 3.57 468.91 13,129.4
977.5/517.5 8
Cashier 420 30 5.78 34.91 3.57 494.26 13,839.2
8
50/50
philhealth

Pag-ibig
100 pesos
Accountant 5,000.00
(Outsourced)
Partners N/A, based on net income after taxes.

Partners’ Profile Qualification

(Assign this later)

Project Timetable