POLYTECHNIC UNIVERSITY OF THE PHILIPPINES i

Chapter IV
Organizational Plan

This chapter tackles about forms of business ownership, organizational

structure, qualification of officers, compensation, office equipment and

equipment, administrative expenses, and gantt chart.

Forms of Business Ownership

This section describes the type of business organization to be formed.

Discuss the reason why you choose that type of business organization.

Organizational Structure

The organizational chart should be presented in this section. Discuss the

type of organizational structure used. You may add pictures of all staff.

The organizational structure identifies the existence of certain positions in

an organization and their authority relationship. It also determines the manner

and extent to which roles, powers, and responsibilities are delegated, controlled,

and coordinated, and how information flows between each level of management.

Figure below shows the organizational structure of Cornelio’s Kabuteysty

Mushroom Products.

MANAGER/
OWNER
 OPERATION
FINANCE OFFICER
OFFICER

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES ii

MUSHROOM FARMING
WORKERS

KABUCHARON
PROCESSING
WORKERS
Figure 4.1
Organizational Structure

The business will use functional as a business structure of the

organization. Rowena Castillo, the owner and manager, will be having the direct

line of responsibility and authority over the activities involving their functional

area. She will be the one to handle the marketing function in introducing the

proposed product that entails sales strategies that require close and studied

pricing and marketing strategies to attract more customers and gain a larger

amount of sales. It is the simplest form of the structure in which manager has

directly authority and control over the people being supervised. This form of

organization is most commonly used by small and medium enterprise.

Manpower Requirement

The description of the positions, qualification standards, job descriptions

and the number of employees should be shown in this section.

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Manpower planning consists of putting right number of people, right kind

of people at the right place, right time, doing the right things for which they are

suited for the achievement of goals of the organization.

Table 4.1
Manpower Requirement
No. of
Job Title Job Qualification Job Description
Positions
 Male or Female,
20-30 years old
 Preferably a  Maintain general
graduate of oversight and ensure
Bachelor of accuracy of financial
Science in records including,
Accountancy or receivables,
Accounting payables, inventory,
Management etc.
 Excellent oral and  Provide vision
written report regarding overall
 Computer literate financial health of the
1 Finance Officer (MS Office) company

Compensation and Other Benefits

This section presents the total compensation requirements for all

positions. Various schedules should be prepared.

Table 4.2
Compensation and Other Benefits
Government
Total Annual
Particulars Quantity Annual Salary Mandated
Cost
Benefits
Administrative
General
Manager 1 Php120,000.00 Php20,000.00 Php140,000.00
Finance
Officer 1 80,000.00 15,000.00 95,000.00
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES iv

Subtotal 235,000.00
Production
Operations
Officer 1 90,000.00 15,000.00 105,000.00
Workers 4 240,000.00 40,000.00 280,000.00
Subtotal 385,000.00
Total  Php610,000.00

Organizational Policies

In order to promote uniformity and consistency of action involving human

resources, it is essential to design good organizational policies, which would be

used as guide to follow and observe on organization of repetitive nature. These

policies serve as general rules for actions to obtain goals and objectives that will

lead to success of employees, workers, and the business itself as whole.

Policies towards the Employees

1. Attendance. It is encouraged that every employee should report to the

workstation at least 10 minutes before the start work.

2. Leave of absence. In case of planned leave, the employee should

inform the manager 2 days before the scheduled leave. In case of

emergency or sickness leave, employee should inform the manager of the

whereabouts of the employee

3. Real time waste works or unnecessary activities are not allowed.

4. Wear the clean and decent clothes. No wearing of undershirts and

sleeveless blouses.

5. No personal business transaction is allowed inside the premises unless

authorized by the owner.

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6. No smoking and drinking before and during work time.

7. Proper disposal of waste should be observed.

8. Workers are responsible for all the losses and damages of tools and

equipment in their custody.

9. Any irregularities in the working area should be reported to the manager

immediately.

10. Personal problems should not affect working performance. Problems

should be left at home.

Policies towards Suppliers

1. The forms and condition between the suppliers must be clearly stated

to avoid conflicts.

2. Damaged supplies will be returned immediately after inspection that

will extend for two days and will be replaced by another of same

quality.

3. Since the firm has not yet established a good credit rating, purchase

will be more on cash basis.

Policies towards Customers and Retailers

1. The customers are not allowed inside the working area of the firm.

2. For defective products, the firm is allowing 2 days for the product to be

returned and replaced.

3. Any return exceeding the three-day allowable replacement will not be

accepted.
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Working Schedule

Working schedule for the first year of operation.

Working hours: 8 hours

Time schedule: 8am - 4pm

Days of Production: 3 times a week (Monday, Wednesday, and Friday)

Number of working days in a year: 260 days for administrative staffs; 164 days

for production manager and workers.

Less:

 Legal Holidays: 6 days

 Special Non-working Holidays: 4 days

 Local Holidays: 1 day

 Day Offs: 0 days

Number of operational days in a year = 249 days for administrative staffs; 153

days for production manager and workers.

Legal Holidays

HOLIDAYS DATE DAY

Maundy Thursday April 14, 2022 Thursday
Good Friday April 15, 2022 Friday
Eid’l Fitr May 3. 2022 Tuesday
National Heroes' Day August 29, 2022 Monday
Bonifacio Day November 30, 2022 Wednesday
Rizal Day December 30, 2022 Friday
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Special Non-Working Holidays

HOLIDAYS DATE DAY

Chinese New Year February 1, 2022 Tuesday
EDSA People Power February 25, 2022 Friday
Revolution Anniversary
All Saint's Day November 1, 2022 Tuesday
Feast of Immaculate December 8, 2022 Thursday
Conception

Local Holidays

HOLIDAYS DATE DAY

Calamba City Day April 21, 2022 Thursday

Management Activities Proposals

In order to maintain a competitive edge in the marketplace, the Cornelio’s

Kabuteysty Mushroom Products through administrative personnel must set aside

a time for training and development of their employees. The management will

consider the training of employees in their current jobs and to develop more their

skills in the workplace. Some of the proposals include the following:

1. Deliver Effective Training – The manager and production officer will

conduct quarterly briefing, trainings and workshops in order to enhance

and improve the skills of their teams. The operations officer together

with the workers are set to attend seminars and trainings like Good

Manufacturing Practices, Food Safety Awareness, 5s, Basic

Occupational Safety and the like. The finance officer is set to attend

Understanding Financial Statements, Basic Bookkeeping, Budgeting

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES viii

and the like. The manager who handles the marketing part of the

business is set to attend marketing and selling related seminars and

trainings like Facebook Page Advertising, Market Trends, Effective

Selling and Negotiation Skils. Learning objectives must be set to

ensure the right set of employees. This can be hand’s – on trainings,

seminars or meeting with the group.

2. Employee Assessment Program - The management will assess the

whole organization by using the behavioural assessment of the

employees to which includes work ethics, behavior, attitudes, and

commitment. This evaluation will be one of the best assessment

solutions to select, retain and develop employees. This proposal allows

the employee’s opportunity to develop and contribute to the farm’s long

term objectives. This assessment solution helps to identify the

strengths and areas of opportunity for development.

3. Conducting Employee Opinion Survey – The management will set

criteria to survey the employees in the workplace to focus on specific

issues like evaluating the work climate of a certain employee. It is a

method to understand their needs, views, suggestions and

recommendations in the organization. Administrative and Production

personnel will be involved in the decision making and commitments

that affect them.

Office Equipment
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Office equipment are assets used for the operating functions of the

company.

Table 4.3
Office Equipment
Particulars Quantity/PC Unit Price Total Cost
Laptop 1 16,000.00 16,000.00
Printer 1 5,000.00 5,000.00
Total     21,000.00
Source:
Table 4.3 shows the office equipment of the company. It is observed that

the laptop has the most expensive cost. It is used to data encoding and social

media advertising.

Office Furniture and Fixtures

Table 4.4 shows the prices of the office furniture and fixture that will be

used by the administrative personnel. It is good for 5 years.

Table 4.4
Office Furniture and Fixtures
Quantit
Description y Unit Cost Total Cost
Office Table 1 Php2000.00 Php2000.00
Office Chair 3 949.00 2847.00
Wall Clock 1 150.00 150.00
Total     Php4997.00
Source:

Office Tools and Supplies

Table 4.5 shows the office tools and supplies that being used by the

company. They are necessary to record the transaction of the business.

Table 4.5
Office Tools and Supplies
Description Quantity Unit Cost Total Cost
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Ball pen 30pieces Php5.00 Php175.00

Bond Paper 10 ream 100.00 1,000.00
Eraser 3 pieces 5.00 15.00
Pentel Pen 5 pieces 10.00 50.00
Envelope 5 pieces 1.25 62.50
Folder 3 pieces 3.00 90.00
Pencil 1 dozen 3.33 40.00
Record Book 2 pieces 41.00 410.00
Ink 1 piece 77.50 77.50
Ink(computer) 5 pieces 500.00 2,500.00
Correction tape 2 piece 15.00 30.00
Time card 2 dozen 0.38 9.00
Staple wire 50 pieces 0.95 47.50
Ruler 1 piece 6.50 6.50
Total Php4,513.00
Source:

Business Permit and Licenses

Table 4.6
Business Permit and Licenses
Particulars Amount

Total

Gantt Chart of Activities

Gantt chart is a graphical depiction of a project schedule. It's is a type of

bar chart that shows the start and finish dates of several elements of a project

that include resources, milestones, tasks and dependencies. (Investopedia)

Activities Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Business Plan, Research

and Analysis
Capital Funding
Purchase of machineries
and equipment and furniture
and fixtures (Mushroom
Farming)
Leasehold Improvement
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Figure 4.2
Gantt Chart
Figure 4.2 shows the gantt chart of the business in preparation for the

expansion through the establishment of mushroom farm. It started to the

business plan research and analysis. It shows the capital funding, purchase of

equipment and raw materials, training of employees, and business permits

renewal. It also entails the processes of producing oyster mushroom and how

operations will run all throughout the year. The chart covers different processes

that begin with the first process until the harvesting of fresh oyster mushroom

and until the end of its life. It can be noticed that in the year 1 of its first quarter,

there is no production of fresh oyster mushrooms yet. Month of January until

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March are period for preparation of mother culture, subculture and preparations

of fruiting bags. It approximately consumes 3 months before fruiting bags can

actually produce and harvest oyster mushroom fruits. For continuous production,

it can be gleaned in the month of April to June is the production and harvesting

period of first batch of fruiting bags before it ends. The same period in the month

of April to June will be used for preparation of mother culture, subculture and

preparations of fruiting bags for next production. So, by the end of the first batch

another batch will batch will produce oyster mushroom. Therefore, there is no

lagging of time in producing and harvesting unlike in the first quarter of the year

since it is the beginning period. Thus, in the following years, there is continuous

and undisrupted production and harvesting of the mushroom fruits to

compensate the demand in kabucharon processing.

Administrative Expenses

Administrative expenses are the expenses that an organization incurs not

directly tied to a specific function such as manufacturing, production or sales.

These expenses are related to the organization as a whole as opposed to an

individual department.

Table 4.7
Administrative Expenses
Particulars Amount
Salaries - Office Workers
Office Tools and Supplies
Business Permit and Licenses
Depreciation Expense – Office Equipment and
Furniture and Fixtures
Rent Expense (if applicable)
Utilities (Office)
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Total Administrative Expenses

Table 4.7 shows the administrative expenses of the company. It may be

gleaned from the table above that the highest cost was the salaries of the office

workers.