Board of Directors (5)

Chief Executive Officer (1)

Productions Manager (1)

Chemist (1) Purchasing Officer (1)

Supervisor (1)

Factory Workers (12)

Maintenance Personnel (4)

Company Nurse (1)

Delivery Personnel (4)

Human Resource

Manager (1)Marketing/Sales

Manager (1)

Sales Agent (5)

Chief Accountant (1)

Cost Accountant

(1)

Treasurer (1)

Internal Auditor (1)

53

CHAPTER 3MAMAGEMENT PLAN

The management aspect involves the organization, company structures and

policies to fully prepare and equip the company with adequate knowledge on running the

business as well as complying with legal requirements. This portion also includes a clear

and precise identification of duties, responsibilities, compensations, flow of authority and

manpower level requirement to direct the members to coordination and productivity.

I. Company Structure

Fig.3.1 Company Structure

54

II. Manpower Requirements

General/ Administrative

Position Job Description Job QualificationsBoard of Directors - Directs the company

towards excellence.- Govern and facilitate the

decision making of the company.

- Assures the credibility and integrity of the company.

- Supervise the overall operation of the business.

- Implement business policies and goals.

- Must own at least one share of the capital stock registered in his/her name.

- Every director must continuously own at least a share of stock during his term, otherwise, he shall automatically cease to be a director.

- Must be capable of governing the business.

- Must know and understand the overall operations of the business.

Internal Auditor - Expresses an opinion whether assertions of the management in financial statements are free from material misstatements.

- Inspects and examine whether internal control is accurate and effective.

- Check whether the financial statements are free from error and fraud.

- Holds the title Certified Public Accountant.

- Must have objectivity and professionalism.

- With good communication and interpersonal skills.

Chief Executive Officer - Constructs business policies and recommendations to the board.

- Administer the overall operation of the business.

- Instructs and guides courses of actions throughout the operation.

- Must be a graduate of any business course.

- Should have at least 3 years of outstanding actual work experience.

- Professional written and verbal communication and interpersonal skills.

- Excellent managing skills.Productions Manager - Controls and monitors the

overall production of the product.

- Guides, instructs and motivate employees.

- Makes sure the efficiency and effectiveness of the

- Must be a graduate of any business course.

- With good managerial, communication and interpersonal skills.

- Competent and dedicated to the job.

55

employees. - Find ways to make the

company more productive through effective production processes.

Human Resource Personnel

- Screens applicants and suggest the management the most promising ones.

- Determines procedures on how to motivate and train employees.

- Ensures the preservation of employee dignity.

- Must be a graduate of Bachelor of Science Major in Human Resource Management or any related courses.

- With good interpersonal and communication skills.

Chief Accountant - Manage the accounts and finances of the company.

- Implement generally accepted accounting procedures.

- Determines proper handling of financial transactions and approves transactions within designated limits.

- Control the emergence of inconsistencies in accounting procedures.

- Reports to the management matters about the financial statement accounts.

- Holds the title of Certified Public Accountant.

- With good interpersonal and management skills.

- With good communication skills.

- Possess extensive knowledge of generally accepted standard accounting principles.

Cost Accountant - Primary responsibility is the compilation and preparation and of financial statements.

- Gathers and keep records of all production cost.

- Allocates the production cost to the products produced.

- Prepares the cost of production report.

- Do bank reconciliations- Make sure the

completeness, validity and accuracy of financial statements, per account

- Must be a graduate of accounting major course.

- With professionalism and good communication and interpersonal skills.

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balance and transaction level.

Treasurer - Keeps safe custody of the company’s cash.

- Prepares financial reports to management.

- A graduate of Bachelor of Science in Business Administration Major in Finance/Financial Management

- With good communication skills.

- Knowledge financial analysis and communication.

Company Nurse - Attends to the medical needs of the personnel.

- Manages the medical supplies in the clinic.

- Be able to apply first aid procedures if the circumstance requires.

- Male or Female.- Must hold a title of a

registered Nurse.21 to 40 years old

Purchasing Officer - Account all the inventory accounts.

- Ensures the availability of all materials for production and office use.

- Process acquisition slips and prepares purchase orders.

- Finished a college degree.- With good communication

and interpersonal skills.- With no criminal record or

offense.

Table 3.1 Manpower Requirements for General/Administrative

Sales/ Marketing

Position Job Description Job QualificationsMarketing/Sales Manager - Develop and create

marketing strategies.- Assures the market

visibility of the company.

- Instructs and guides agents.

- Thoroughly study the market needs and how to supply them.

- Must be a graduate of Bachelor of Science in Business Administration Major in Marketing or other related courses.

- With excellent marketing and management skills.

- With good communication and interpersonal skills.

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- Must have at least 2 productive years in the marketing-field.

Sales Agent - Search for potential buyers.

- Market and sell the product.

- Make deals and contracts with customers.

- 23-35 years old- Finished a college

degree.- With good

communication and interpersonal skills.

- With pleasing personality.

Table 3.2 Manpower Requirements for sales/marketing

Direct Labor

Position Job Description Job QualificationsFactory Workers - Has the over-all

responsibility on the process of producing the product.

- Puts raw materials into process.

- Guards the production process.

- Packing the final product.

- Male or Female- 20 years old and above- Must be at least a high

school graduate.- With no criminal record

or offense.

Table 3.3 Manpower Requirements for Direct labor

Indirect Labor

Position Job Description Job QualificationsChemist - Assures the accuracy of

the production process.- Test compounds and

solutions.- Check and guarantee the

quality of the product.- Research on and

develop the production process and the product itself.

- Finished a degree of Bachelor of Science in Chemical Engineering.

- With good communication and interpersonal skills.

- Ability to analyse and improve the scientific aspects of the production.

- -

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Supervisor - Instructs and guides the workers in their duties.

- Ensure that a group of subordinates properly execute their functions in the production.

- Observe and evaluate the workers’ performance.

- Assist and recommends to the manager the evaluation of the subordinates.

- Must be a graduate of any business courses.

- Must know how to manage and deal with employees.

- With good interpersonal and communication skills.

Maintenance Personnel - Regularly check and maintain the productivity of the machines and equipment.

- Repair broken parts of the machines and equipment

- Ensures the cleanliness and orderliness of the production site.

- Ensures the company supplies stock.

- Male- 23 years old and above- Must have technical

knowledge and experience on machines and equipment.

- Must be at least a high school graduate.

- With no criminal record or offense.

Delivery Personnel - Safely transports the goods to customers.

- Maintains the quality of the product during transportation.

- Ensures that the products would be delivered on time.

- Male- 23-35 years old- Must have a

professional driver’s license.

- At least a high school graduate.

- With no criminal record or offense.

Table 3.4 Manpower Requirements for Indirect Labor

59

III. Compensation

Category No. of

employees

Salary per month Salary per year

Administrative 10 162,700 1,952,400

Selling 6 80,000 960,000

Direct Labor 12 103,680 1,244,160

Indirect Labor 9 132,800 1,225,200

Total 37 479,180 5,381,760

Table 3.5 Total Compensation

Position No. of

Employees

Basic

Salaries -

2013

Salary

per

month

Months Salary

per year

Chief Executive Officer 1 25,000 25,000 12 300,000

Internal Auditor 1 20,000 20,000 12 240000

Productions Manager 1 20,000 20,000 12 240,000

Human Resource

Manager1 20,000 20,000 12 240,000

Chief Accountant 1 18,000 18,000 12 216,000

Cost Accountant 1 15,000 15,000 12 180,000

Treasurer 1 13,000 13,000 12 156,000

Purchasing Officer 1 12,000 12,000 12 144,000

Company Nurse 1 10,000 10,000 12 120,000

60

Maintenance Personnel 1 9,700 9,700 12 116,400

Total 10 162,700 162,700 1,952,400

Table 3.6 Salaries of Administrative Employees

Position No. of Employees

Basic Salaries -

2013

Salary per

month

Months Salary per year

Marketing/Sales Manager

1 20,000

20,000

12 240,000

Sales Agent 5 12,000

60,000

12 720,000

Total 6 32,000

80,000

  960,000

Table 3.7 Salaries of Sales/Marketing Employees

Position No. of Employees

Basic Salaries -

2013

Salary per

month

Months Salary per year

Factory Workers 12 8,640 103,680 12 1,244,160 Table 3.8 Salaries for Direct Labor

Position No. of Employees

Basic Salaries -

2013

Salary per

month

Months Salary per year

Chemist 1 20,000 20,000 12 240,000Supervisor 1 17,000 17,000 12 204,000Maintenance Personnel

3 9,700 29,100 12 349,200

Delivery Personnel 4 9,000 36,000 12 432,000Total 9 67,700 126,100 12 1,225,200

Table 3.9 Salaries for Indirect Labor

IV. Business Monitoring

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A. Pre investment Activity

Before the execution of the business, adequate knowledge should be

acquired for three months whether the formulated idea is feasible or not. Indeed,

enough attention must be rendered to this concern to be able to forecast the

possibilities. This period is set to identify the market of the projected business and

how the business will be operated and managed.

B. Business Application

This period is intended for the accomplishment of filing all the legal

papers required for the operation of the corporation. Such legal documents include

the Article of Incorporation to be filed in the Securities and Exchange

Commission (SEC), and business name to the Department of Trade and

Industry .Moreover, the company will also file other requirements to other

government offices.

C. Issuance of Stock Shares

In order to fully finance the operation of the company, such as

construction of the site, purchasing equipment and materials needed and other

projected costs, Carbon Plus Corporation will issue shares to its potential

shareholders worth P 50,000,000.00 with 500,000 authorized ordinary share

capital, P 100.00 par value.

D. Site Preparation

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In this period, the business shall prepare its plant and office location. The

business would buy the land and construct the plant and office building. It might

take more or less than half of a year for the construction to be finished and

polished.

E. Installation and acquisition of machineries and equipment

During the preparation of the plant site, the management will scout all the

necessary machineries and equipment to be used in its operations. Once the plant

site is prepared for settlement, the company would then acquire and install the

machineries and equipment.

F. Hiring and training of personnel

Now, the company shall be open for hiring employees. It shall employ the

most competent applicant for the success of the company does not only lie with

the management but also to all its personnel. Thus, after hiring the most

competent applicant it shall now undergo through training. Here, the employee

would know and understand how the business would function.

G. Purchase of Raw Materials

This is about the purchase of raw materials coming from Quezon and near

areas. This also deals with the familiarization of employees with regards to the

usage of the raw materials in the production process for them to be

knowledgeable in the components of the product.

H. Advertising and Promotion

63

In order to help the product make its way into the market, there is a need

for advertisements and promotions. Advertisements and promotions are a huge

and critical part in marketing the product especially in the first years of the

company’s operations.

I. Start of Production and Operation

The production of Activated Carbon will now start at this point. At this

time, all raw materials, manpower, and machineries are ready to operate and start

the production. Product order can now be entertained.

V. Organizational Policies

A. Employment

Before the actual operations of the business, the company will already be

working on the recruitment, hiring and training of the employees, to condition

them in the nature of the operations. After undergoing training and evaluation,

each employee would be under the responsibilities of their respective department

managers.

The key personnel will be employed on a permanent basis or depending in

work performance. However, plant workers and staff will first subject to a six-

month probationary period.

1. Hiring

64

The company will hire employees in accordance with the set of

qualifications for each position. It will be done on a first come first serve

basis; no special treatment would be tolerated to promote fairness.

2. Suspension

Suspension is a common practice in the workplace as a part of the

reinforcement procedure of the company. Negative reinforcement by B D.

Skinner will be used by Carbon Plus Corporation to motivate the

employees to follow the stated policies, wherein, corresponding

punishment will be given to employees who violate the policies.

3. Termination

Employees who persistently and heavily violate the policies of the

organization can be subjected to termination.

B. Office Hours

Carbon plus Corporation’s office is open Monday through Saturday from

8 o’clock in the morning to 12 o’clock in the afternoon and shall resume at 1:00 to

5:00 in the afternoon, having a Forty eight (48) Office working hours in a week

per personnel.

C. Factory Hours

Carbon Plus Corporation will operate from Mondays to Saturdays from

8:00am to 12:00 and will resume at 1:00 to 5:00 in the afternoon. Therefore each

worker will have forty eight (48) working hours a week.

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At some point in time, there are possibilities that the higher authority

would call the attention of the employees and schedule them for work as

necessary. All employees are expected to be at their work locations ready for

work at their scheduled time. Persistent late arrival to work and/ or early leaving

from work will result in disciplinary actions moreover, it may include

termination.

D. Working days

There will 286 working days for office employees and factory personnel

after considering the non-working holidays and a 10 day-allowance for

interruptions in the operation such as brownouts, equipment breakdowns,

typhoons and the likes.

Salaries for key personnel are fixed and shall be released every 15 th and

30th day of the month. Moreover, salaries of operations personnel are also paid

every 15th and 30th day of the month, depending on the number of hours they have

worked.

Months Number of Days

Sundays Non-working Holidays

Operating Days

January 31 4 2 25February 28 4 0 24March 31 5 0 26April 30 4 3 23May 31 4 1 26June 30 5 1 24July 31 4 0 27August 31 5 5 21September 30 4 0 26

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October 31 4 0 27November 30 5 3 22December 31 4 2 25TOTAL 365 52 17 296

Table 3.10 Working days

E. Leave of absences

All personnel of the company are entitled to a maximum of ten (10) days

leave of absences per operating year. The leave of absences should be filed one

week before the desired date and requires approval of the department manager.

The key personnel need to accomplish important tasks on their respective

department before they can avail the leave of absences. Moreover, they should

return in the office in case urgent or important situation happens that requires

their presence.

F. Disciplinary Measures

1. First offense- Verbal warning

Under this circumstance, the employee is reminded verbally about

the job performed poorly or minor violation of company’s rules and

regulations.

2. Second offense – written reprimand

What applies to verbal warning also applies to written reprimand.

In this case, the employee receives a memorandum or personal letter from

its department manager. A record of employees’ violation will be kept.

3. Third and Fourth offense- suspension

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It is done when there is a severely employee mistake. The

suspension period last up to six month period depending upon the nature

of the offense done by the employee.

4. Fifth offense- Management Intervention

In case a serious violation takes place or mistakes become frequent

in performing specific task, the management decides a specific action

applicable to the situation, which may further result to termination of the

employee on his service.

G. Employee health benefits

At the time of recruitment, there will be a physical health examination to

each applicant for the company to be sure that the personnel that will be hired are

physically healthy and mentally fit for the position. A regular quarterly check-up

will also be employed to company employees. Moreover, the company’s clinic

will be open to cater to the needs of the employees.

H. Probationary Period

A six-month probationary period is required for all new employees. This

probationary period provides an opportunity for new employees to evaluate their

work situations and in turn, provides the CEO an opportunity to judge their

performance and suitability for continued employment. This probationary does

not represent a guarantee or contract fir employment for the full six-months or

any other period of time, and does not affect the eligibility requirements for

benefits. A written evaluation will be provided by the CEO. If time restraints

68

prevail, the new employee is under the probation until the evaluation has taken

place.

At the end of the probationary period, the CEO shall prepare a written

evaluation of the employee’s performance, and review the evaluation of the

employee. The evaluation shall take into consideration the employee’s ability to

form sound relationship with the membership, volunteers, staff, CEO and Board

of Directors; progress on the job; and professional community relationship.

I. Vacation

Employees may take vacations at any time during the year. They must,

however, prearrange such vacation with the CEO to avoid conflict with scheduled

and other work in the company that may require their presence. Employees may

accumulate up to 15 days of vacation time.

J. Overtime Work

Article 87 of the Labor Code of the Philippines grants that work may be

performed beyond eight (8) hours a day provided that the employee is paid for

the overtime work, an additional compensation equivalent to his regular wage

plus at least twenty-five (25%) percent thereof.

o Office employees may work until 10 o’clock in the evening

o First and Last shift of factory workers can work before their scheduled

time for overtime provided that it is necessary and for the benefit of the

entity.

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For Work Performed on

Rate of Pay, Based on

Daily Rate

Rate of Pay, Based on

Overtime RateRest days 130% 169%

Special days 130% 169%

Rest day which is also a special day

150% 195%

Regular holiday 200% 260%

Regular holiday which is also a rest day

260% 338%

Table 3.11 Rates on Holidays and Overtime(source: Cost Accounting by Nenita Mejorada)

K. Paid Holiday

As in accordance with the Labor Code of the Philippines Art. 94, right to

holiday pay, every worker shall be paid his regular daily wage during regular

holidays.

Carbon Plus Corporation may require an employee to work on any holiday but

such employee shall be paid on a compensation equivalent work on any holiday

but such employee shall be paid a compensation equivalent to twice his regular

rate, and as used under this Article “Holiday” includes:

70

Table

3.12

Schedule of regular holidays

Regular Holiday Date

New Year’s Day January 1

Maundy Thursday Movable Date

Good Friday Movable date

Araw ng Kagitingan April 9

Labor Day May 1

Independence Day June 12

Eid’l Fitr August 20

National Heroes Day Last Monday of August

Bonifacio day November 30

Christmas Day December 25Special Non-Working Holiday Date

Chinese New Year January 23

Quezon Day August 19

Lucena Day August 20

Ninoy Aquino Day August 21

All Saints Day November 1

Additional Special Non Working

Day

November 2

Last Day of the Year December 31

71

Table 3.13 Schedule of Special Non- Working Holiday

VI. Legal Requirements

For the business to be legally established and operated, the company must first

comply with different legal requirements. Thus, it shall file and process all the necessary

required documents to the following government entities before it starts its operations:

Security and Exchange Commission

The company shall file articles of incorporation and all other

necessary requirements at the SEC office. This would give the entity its

separate juridical identity.

Department of Trade and Industry

DTI monitors businesses within the country. Thus, it is a requirement of

the government to register all business operating inside the country. And so,

the company shall register the business at this office.

Bureau of Internal Revenue

The company must file a tax identification number at the BIR. This would

oblige the company to pay taxes at a monthly, quarterly or annual basis.

72

Department of Environment and Natural Resources

To ensure that the company is operating in accordance with the

requirements of DENR in the proper waste management as well as other

aspects involving the utilization of the environment.

Land Transportation Office

The company will secure all the essential permit and licenses

for the registration of the delivery vehicle.

Local Government of Pagbilao

Compliance with the legal requirement of Pagbilao will alsobe necessary,

for the location of the company’s plant site.

City Government of Lucena

Carbon Plus Corporation complies with all the legal

requirements in the city where the company will be operating.

o Zoning

The company has submitted all the legal requirements to the Zoning

Department on the local government located at City Hall, Lucena City.

o Fire and Safety

The Bureau of Fire has granted the Carbon Plus Corporation the fire and

safety permit after the inspection by their authorized staffs.

73

o Building permit

The City Engineer’s office has given the corresponding building permit

to the Carbon Plus Corporation after completion of all requirements

needed in applying for the permit.

o Business Taxes and Licenses

Mayor’s permit, clearances from baranggay, and other legal

requirements have been granted to the company. These clearances and

permits will be renewed every year end and business taxes will be paid

to the City Hall for the validity of the permits and the legality of the

business.

o Sanitary Permit

Initial inspection of the place and observation of the rules and

regulations was conducted in a manner satisfactory to the Regional

Sanitation Committee.

For employee benefits:

It is mandatory by the government to give benefits and compensations to

its employees. Thus, the company should register and file its company at the

agencies below for the payment of employee compensations.

74

Philhealth Pag-ibig

Social Security System

75

VII. Gantt Chart

2012 2013

Months Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Feasibility Study

Business Application

Financing Activities

Preparation of plant site & acquisition of machineriesHiring and Training Staffs

Purchase of raw materials

Promotion and Advertisements

Start of operation

Table 3.14. Table form for estimated period to start the operation