Chapter IV

Organizational Feasibility

This aspect includes a study of the officers and key personnel, basic consideration in

forming the organization, form of ownership, organizational chart and project schedule.

I. Business Structure

A. Form of Ownership

The type of business is a partnership. It is to be registered with the Securities and

Exchange Commission (SEC) for the contract called articles of co-partnership. By the

contract of partnership, two or more persons bind themselves to contribute money, property

and industry with the intention of dividing the profits among themselves. Yumpy Palabok as

partnership will be registered with the different government agencies as Securities and

Exchange Commission (SEC), Department of Trade and Industry (DTI), Business Permit and

Licensing Office of Ormoc City Hall , Bureau of Internal Revenue (BIR) and Social Security

System (SSS). The project will have its full blast after it has complied with all the necessary

documents and technical requirements needed to operate and engage in this type of business.

The pre-operating capital for this business will be Php300,000 each partner has a total of

Php150,000.

B. Availability of Manpower

It is very vital in all business organization to know their manpower requirements to

operate systematically and effectively at all times. It will help also to determine the capacity

or capabilities of the employees to fit in the flow of business as well as to have a clear duties
and responsibilities. Having standard qualifications in hiring and selecting, the employee will

establish efficient business operations. People are considered to be the lifeblood of any

business organization. They are very important for the business to operate effectively and

efficiently. Yumpy Palabok will need a full time employee. In the business operation, we

need a total number of manpower in our restaurant They are the ones who will perform the

functions of following positions:

Position No. of employees

Manager 2

Service Crew 1

Cashier 1

Kitchen Steward 2

Total Employees 6

Organizational Structure

A. Organizational Chart

Manager

Cashier Kitchen Steward

Service Crew

Kitchen Kitchen
Steward 1 Steward 2
B. Job Description

Discipline is the primary concern of the organization for the attainment of the

productivity and efficiency that will lead to the organizational and personal growth. All of

the employees as well as the general partners are expected to behave ethically at all times. It

is the company’s policy to select applicants based on the following factors:

Position Job Description Job Specification

Manager  Responsible for the overall  Leadership mentality

supervision of all other  Time-management skills
managers and  Problem-solving capability
subordinates.  Decision-making skills
 Responsible for the  Communication skills
administration of all the  Ability to work under
management functions – pressure
planning, organizing,  Team-oriented mindset
controlling and directing.  Effective feedback delivery
 Handles the
implementation of the
policies, rules and
regulations throughout the
organization.
 Monitors the performance
of his subordinates.
 Responsible for the overall
ongoing production
operations including
inventory control,
scheduling,
documentation, equipment
maintenance, calibration,
shipping, and Quality
Control/Food Safety
Inspection
Kitchen Steward  Ensures the quality of  Customer service
products and all the food  Basic math
standards are met.  Computer skills
 Responsible for the  Cash handling skills
cleanliness of all the  Communication skills
kitchen tools and  Interpersonal skills
equipment.
 Ensures the maximum
 level of performance of
the machines and
equipment.
 Minimizes the wastage of
raw materials in
production
 Responsible for the safety
of food and elimination of
hazardous elements.
Counter/Cashier  Greet customers politely at  Maintain knowledge of
all times. sanitation, dishwashing,
 Ensures good customer maintenance, and safety
relations by giving standards
friendly service to them.  Responsible for storing
 Handles money/sales chemicals and cleaning
properly products
 Eliminate loss of the store  Communicates with other
by accurately receiving kitchen assistants to ensure
payment and giving of that all work is accomplished
change by team
 Keeps work area (floor,
machine, shelving, carts, )
clean at all times
 Dedicated to supporting a
safe work environment
 Must be well organized and
works well independently
part of a team
Service Crew  Working and  Providing good customer
communicating effectively service and attending to
with co-workers and customers' needs
management  Taking and serving
 Arriving for your shift on customers their orders
time  Dealing with customer
 Responding to questions, feedback with a positive
concerns, and complaints attitude
from customers, vendors,  Regular Sanitation
or clients  Lending a hand to different
 Conduct administrative store areas whenever it is
duties and errands as needed
required  Physical work includes
 Escalate any problems or standing for long periods,
complaints to the relevant reaching counter storage
supervisor or manager shelves, and lifting heavy
 Prioritize important tasks restaurant
and manage time equipment/ingredients.
 effectively
 Maintain professionalism
and a positive attitude

II. Business Policies

A. Quality Standards

Employee Job Qualification

Manager  College graduate of as 4-year Management degree
 At least 2 years of managerial experience and has a higher degree of
academic preparation with pleasing personality
 25-30 years old, male or female
 Highly intelligent and very good in decision making
 Creative and imaginative
 Hardworking and good in handling people
 Good communicative skills
Cashier  At least Senior high school graduate 18-21 years old, male or female
 With working experience in any fast food or restaurant.
 Hardworking and with high level of work discipline.
 Fast in accomplishing task and can do multi-tasking
Kitchen  Senior High School or College graduate in Accountancy or any
Steward related course.
 At least 1 year working experience related in handling money.
 22-30 years old, male or female
 Good communication skills
 Computer literate, knowledge in
Service  Senior High School graduate
Crew  Proven work experience as a Crew Member or similar role
 Friendly, reliable, and punctual
 Strong communication skills
 Physically fit and able to work on feet for long periods
 Enjoy working with people
 Relevant training and/or certifications as a Crew Member

B. Safety Policies

Yumpy Palabok acknowledges its moral and legal obligation to provide a safe and

healthy work environment for its employees and customers. This includes ensuring that the
organization does not endanger the local community by causing injury, disease, or property

damage.

Yumpy Palabok will ensure that every employee is well-qualified and knowledgeable

about the principles of safe work practices as well as the organization’s safety practices to

provide job protection.

 To ensure occupational protection, the business should follow the following:

 Take care of yourself and your coworker’s well-being.

 Throughout the workplace, common safety signs can be seen.

 To conduct the task correctly and safely, required training demonstrations are needed.

 When using devices and machinery, maintain a proper stance.

 Workplace that is both safe and hygienic.

 Emergency procedures.

 Prior to using, all machinery, computers, and tools are inspected.

 Enforce company safety and health policies and make it a condition of employment for

workers to observe them.

 Accidents should be monitored to decide what caused them and how to avoid them in the

future.

 In order to minimize and eliminate the risk of food borne illness, the business

 would also adhere to Hazard Analysis Critical Control Point (HACCP) guidelines in

terms of food preparation.

Safe Food Handling Practices:

 On the day of planning, use as few hands as possible.

 Before and after handling food, make sure to wash your hands.
 Personal protective equipment should be kept clean at all times.

 To avoid food contamination, keep raw and cooked foods apart in the fridge.

 The temperature in the refrigerator should be between 0 and 4 degrees Celsius, and the

temperature in the dry storage should be between 10 and 21 degrees Celsius.

 To prevent dripping, which can lead to food contamination and bacteria, do not store raw

food above cooked food while storing.

 Still keep an eye on the food.

 The foods must be clearly labeled.

 In stock storage, remember FIFO (first in, first out).

Safe cooking Practices:

 When cooking, all foods should have an internal temperature of 75 degrees Celsius or

higher (for poultry it is 82 degrees Celsius). When doing so, use a food temperature as a

guide.

 Keep perishable foods, and poultry items such as chicken, and milk out of the danger

zone. Store them at 4 degrees Celsius or lower, or at 64 degrees Celsius or higher.

 Cold foods should be kept cold, and hot foods should be kept hot.

Proper Thawing of Food:

 6 hours prior to cooking, defrost the meat.

 Thaw in a sink with cold water

 Microwave it to thaw.

 Refrigerate to thaw.
Serving of Food:

 Clean and sanitized glass, plates, and utensils are required.

 Plates must be held at the bottom or edges, and glasses must be held by the stem or body.

 Yumpy Palabok would also contribute to the HACCP method for receiving food at the

restaurant.

 Purchases must be tested, and meat products must be kept at a temperature of -18°C. It

will ensure that the food served is handled correctly and cleanly, that raw materials are

stored properly to prevent bacteria from spreading, and that every food handler is

professionally qualified and experienced.

C. Operating Policies

C.1 Orientation

All newly hired employees regardless of classification of rank and status must

undergo on orientation and indoctrination as to the Company’s vision, mission, policies, rules

and regulations, duties and responsibilities and menu familiarization.

C.2. Work Schedule

It is the policy of the company to provide appropriate work hours without violating

the mandated rest days. As such, the company requires all employees to follow the seven (7)

hours working shift, including one-hour break assigned to them.

C.4. Attendance and Punctuality

Attendance and punctuality are important qualities that the company expects from its

employees. They are the factors that determine an employee’s efficiency and reliability. The

Employee’s presence is necessary for the smooth flow of work at the start of the business

hours.

 Attendance

Every employee shall ask written permission from the Store Manager or Department

Head, before taking the leave of absence.

a) Unscheduled Absences - Employees must file an application for absence for at least one

(1) week ahead to Store Manager or Department Head.

b) If employee incurred sickness and cannot report for work, he must call the supervisor or

manager at least two (2) hours before his duty. If no calls were received on the day of his

absence or his call came in late, this will be considered as AWOL. Upon return to work,

he must file an absence slip with medical certificate attached for signature and approval

of Store Manager or Supervisor

c) Emergency Leave - If employees must go on emergency leave, he must file an absence

slip immediately. Attached to the absence slip must be documents justifying his reason

for going on emergency leave. An employee who is absent from work without written

approval is subject to penalties. An employee who is absent without official leave for

five consecutive days is considered to have abandoned his work and therefore subject to

outright dismissal from the company.

 Punctuality

It is the policy of the company to discourage tardiness as this affects the morale of the

punctual employees as well as the operations of the business. Tardiness shall mean coming to

work past the required starting time. It also means failure to go back in the workplace

immediately after break periods. Heavy traffic, oversleeping , personal reasons, etc. do not

constitute justification for late arrivals. Only three (3) tardiness are allowed within one

month. In excess of this, an employee is subject to disciplinary action. Arrival in the

workplace two hours after scheduled time will be sufficient ground to consider an employee

as absent for half day. Tardiness shall be chargeable directly against basic pay.

C.5. Personnel Movement and Performance Evaluation

It is management’s prerogative to assign, transfer, reclassify, promote or demote its

employees accordingly based on merit and performance. Thus, employees are continuously

evaluated as to their performance, work attitude, productivity, honesty and diligence and may

be served as bases for management’s decisions on personnel movement. Performance

evaluation shall be done to every employee on his 3rd, 4th, and 5 th month. For regular

employees, performance evaluation shall be done twice a year every May and November of a

calendar year.

C.6. Voluntary Resignation

In case an employee intends to resign, he/she must give a one-month prior notice to

the management and must comply with all the clearance requirements; otherwise the

employee shall forfeit whatever remaining compensation due to him.

D. Waste Management

Customers are always the priority. The business would like to give them a one

hundred percent satisfaction of sanity and the maintenance of cleanliness in all areas of the

kiosk is included in the customer requirements. So, Yumpy Palabok encourages all the

members of the organization especially the business is in the food industry to strictly

comply with the set of standards in cleanliness specifically with the proper disposal of

waste.

Yumpy Palabok wants to commit to proper waste disposal. We want to make the Kiosk

clean, environmentally friendly, and free from any source of contamination.

Here are important things to ensure proper waste disposal:

 Yumpy Palabok will be having proper trash cans for proper segregation of waste.

 Yumpy Palabok employees should be trained on how to properly segregate waste and

make it organized.

 Make sure that the containers of waste should regularly wash, sanitize, and clean. This

will help to prevent contamination and make sure that it is free from any bacteria.

 Food Scraps should be maintained on removing from the kitchen (regularly or daily).

 Collecting garbage should be done twice or thrice a week.

 Overflowing of garbage containers should not be allowed. To avoid overflowing garbage

it should be monitored regularly. Get extra containers.

 Provide special containers for those dangerous items like broken glass for safety

purposes.
 When the garbage containers are not in use make sure that it is closed or covered to

avoid contamination.

 To avoid growing bacteria in the garbage containers use garbage liners to make sure that

the garbage containers are clean and to make sure that the bacteria will not have time on

growing which will help in avoiding contamination.

 Employees that have direct contact with the garbage and garbage containers should

always wash and sanitize their hands.

The business will also take steps to reduce the amount of waste that the business generates.

These are the following:

 Make food to order to prevent wasting food by preparing too much food.

 To avoid dehydration and waste, keep vegetables and other perishable foods in airtight

containers that can be reused.

 Purchase the exact amount of ingredients that will be needed.

 Compost food waste

E. Reward system for employees

E.1. Salaries and Wages

All employees shall receive their respective salaries or wages as provided in their

Contracts of employment every 15th and last day of the month. Cut-off for payroll

computation is every 10th and 25th of the month.

E.2. Overtime Pay

 Employees may be required to work beyond their shift or even on rest days due to

work requirements. Every effort should be made to avoid unnecessary overtime work and to

keep work within reasonable limits. All overtime work should have prior written approval

from the Store Manager. Every employee should file their overtime slips within the pay-

period to be compensated. No overtime slip, no overtime pay.

E.3. Cancelled Day-off/Holiday Pay

Every employee shall be provided with a rest period of twenty-four (24) hours after

every six (6) consecutive normal working days.

The following shall be considered regular holidays:

  New Year’s Day - January 01

  Maundy Thursday - movable date

  Good Friday - movable date

  Araw ng Kagitingan - April 09

  Labor Day - May 01

  Independence Day - June 12

  National Heroes Day - last Sunday of August

  Ramadan - movable date

  Bonifacio Day - November 30

  Christmas Day - December 25

  Rizal Day - December 30

The following shall be considered special holidays:

  All Saints Day - November 01

  Last day of the Year - December 31

Work performed on a regular holiday shall be compensated with an additional

compensation equivalent to 100% of his regular salary. Work performed on an employee’s

rest days or on a special holiday shall be paid an additional compensation of 30% of his

regular salary.

E.4. 13th Month Pay

The 13th month pay of an employee which shall be equivalent to 1/12 of his basic

salary earned within a calendar year shall be given not later than December 24 of each year.

E.5 Accident Insurance

Regular employees are enrolled by the Company under a reputable Insurance

Organization. Any accident incurred whether work-related or not shall be compensated by

this Insurance firm. This plan shall be on employer-employee participating basis.

E.6. Other Incentives and Awards

Awards and certificates of recognition, such as Crew of the Month, Best in

Attendance, Most Punctual Employee, Model Employee of the Year and the like shall

be given the discretion of management.

F. Legal Requirements
F.1. Ormoc City Hall

  Business Permit

  Barangay Business Clearance

  Lease Contract

  Locational Clearance

  Picture of Establishment

  Fire Clearance

  Sanitary Permit

F.2. BIR (Bureau of Internal Revenue)

 2316 Form - Certificate of Compensation Payment/Tax Withheld For Compensation

Payment With or Without Tax Withheld

 1702-RT Form - Annual Income Tax Return For Corporation, Partnership and Other

Non-Individual Taxpayer Subject Only to Regular Income Tax Rate

 1903 Form - Application for Registration For Corporations, Partnerships (Taxable/Non-

Taxable), Including GAIs, LGUs, Cooperatives and Associations.

F.3. SSS (Social Security System)

 R-5 (Employer Contributions Payment Return) - This is a standard report used by the

SSS to account taxes that are paid by the employer for each employee receiving a salary

from the employer’s company.

 R-1A - Contribution details of newly hired members/employees and is submitted

monthly by the company. )

F.4. DTI (Department of Trade and Industry)

 Application for Partnership

 Business Name Registration Form

F.5. SEC (Securities and Exchange Commission)

 Articles of Partnership

 Registration Data Sheet

F.6. FDA (Food and Drug Administration)

 Petition to open a food establishment

 RA 3720 - An Act to Ensure the Safety and Purity of Foods and Cosmetics, and the

Purity, Safety, Efficacy and Quality of Drugs and Devices being Made Available to the

public.

 Checklist for food establishment