MANAGEMENT STUDY

5.1 Objectives of the Study

The study aims to:

-define the organizational structure of Laverie Inc.

-establish the amount of investment to be contributed by each

partner

-provide just compensation and proper benefit of the employees

-convene legal requirement needed in accordance with the law for

the operation of the business

5.2 Form of the Business Ownership

The Laverei Inc. will be established as a partnership

business composed of six members as the owners of the business.

Being a partnership business, the relation of the partners arises

from contract and not from status, the operation of law or

inheritance.

The following are requisites of partnership as states in our New

Civil Code of the Philippines:

1. A voluntary and valid agreement among the parties

2. A lawful purpose for which the partnership is organized

3. Contributions of money, property or industry

4. An association for a profit to be divided among the

factors

5. Mutual agency among the partners

6. A practice of transparency on the records and

transactions of the partnership

The Articles of Partnership is necessary and must not be kept

secret. The fact that partners have mutual agent of partnership,

all partners must know the terms and conditions of the contract

of partnership.

5.3 Capitalization

Each members of the partnership agreed to contribute equal

capital requirements for the business, which costs P3, 000,000.

The division of the amount is as follows:

Bolivar, Bearnela - P500, 000

Buenavista, Danielle Anne - P500, 000

Damian, Lira Mae - P500, 000

Dionisio, Jamzeinna - P500, 000

Dollosa, April Jean - P500, 000

Remillo, Robelyne-Reala - P500, 000

TOTAL - P3, 000,000

5.4 Organizational Chart

Figure 1. Organizational structure of Laverei Inc.

5.5 Manpower Requirements

The key to a success business lies in choosing the right

employees as describe based on duties and responsibilities of a

job.

Job analysis is an important tool in determining the

physical requirement of a job. The purpose of conducting job

analysis is to prepare job description and job specification,

which in turn help to hire. The right quality of workforce into

the organization.

5.5.1

5.5.2 Recruitment and Selection Process

When the establishment is open for hiring, an applicant

shall go through the following steps:

The applicant must fill out an application form with list of

persons who can guarantee his/her character.

He/she shall take test, which include I.Q. test, psychological

test and personality test that will vary depending on the

position being applied to.

Qualified applicant will be scheduled for an interview by the

administrative office.

The Admin Manger is responsible for processing the

application. He will also decide whether an applicant is accepted

or not.

Prospective employees will received a call from the officer-

in-charge if they are accepted and are required to submit

residence certificate, mayor’s permit and medical certificate by

a certified health officer, police and NBI clearances. After all

the requirements are submitted, they will be oriented regarding

their duties, undergo training and they will be assigned to their

works.

5.6 Compensation

ORGANIZATIONAL POLICIES

PERSONNEL POLICIES

Laverie values its workforce based on the belief that the

company’s greatest asset is its work force.

EMPLOYMENT

Recruitment / Hiring

Applicants are selected based on compliance with the basic

qualification requirements of the position, as stated in the

Manpower Requirements section. All applicants for employment

shall be required to fill out the application for Employment Form

(File 201) and should pass all the tests and interviews before

complying with the following personnel requirements:

SSS Identification Card or E-1 from

Photocopy of Birth Certificate

Recent NBI Clearance

2 pcs. 2 x 2 colored ID Picture (white background)

Physical/Medical Certificate

Employment Agreement

The newly hired employees are required to understand and

sign the Employement Agreement presented to him/her on or before

the first day of reporting for duty.

CONFLICT OF INTEREST

The company prohibits any employee from engaging in personal

activities or business dealings violating the company’s best

interest while employed.

Employment Status

As an employee, employment status may be any of the

following:

1. Regular Employee – one who has satisfactorily completed

the probationary period. As a permanent employee, he / she is

entitled to all company benefits and privileges.

2. Probationary Employee – a newly hired who is undergoing a

sixth month probationary period to determine whether he will be

granted permanent status. If he performs to meet the company

standards, he may be promoted as a regular employee.

3. Contractual Employee – on who is hired for a particular

project to be completed only thru a specific period.

Non-working Holidays

The company shall be opened on all days of the year except

on the following dates:

New Year’s Day (January 1)

People Power Day (February 25)

Holy Thursday

Good Friday

Araw ng Kagitingan (April 9)

Independence Day (June 12)

Labor Day (May 1)

Ninoy Aquino Day (August 21)

National Heroes’ Day (Last Sunday of August)

All Saints Day (November 1)

Eid al-Fitr (based on Islamic Calendar)

Bonifacio Day (November 30)

Christmas Day (December 25)

Rizal Day (December 30)

New Year’s Eve (December 31)

EMPLOYMENT DECORUM

Work Schedule

Since the opening and start of the operations in Baymart

Plaza is 7am, we will start at 8:30 am. Sales staff and store

supervisor are given 60 minutes for their lunch break. Lunch

break is at 12:00 to 1:00 pm. Employees in the office section

follow a regular eight-hour working schedule, from Monday to

Saturday.

Other exceptional dates for the operation of the business shall

be decided upon the administration based on the following

conditions:

Bad weather

Emergency events

Other unexpected circumstances

Attendance

They are expected to observe their scheduled work hours. If

they have to be absent, prior approval must be secured before

they intend to leave through the Leave Application Form.

The detailed procedures for filling of leaving the following:

1. Fill up the necessary information on the Leave Application

Form available at the Office of the Store Supervisor. It shall be

filed upon the Personnel Department at least one day before the

corresponding requested leave.

2. Submit the fill-up form to the Office of the Supervisor for

approval.

3. The immediate supervisor shall affix his/her signature on the

application form as a proof that the application form is reviewed

and approved, and then the form shall be returned to the Office

of the Store Supervisor.

4. The employee shall be informed about his/her Leave Application

Form being approved or rejected immediately upon signature of the

store supervisor.

Punctuality

They are expected to report on time, not only at the start

of the work, but also after break time. They must plan their

daily activities and provide allowance for any unexpected delays

so that they can report promptly.

They shall be given a grace period of thirty minutes. After

which their tardiness shall be subject to salary deduction and

the corresponding disciplinary action under the Company Code of

Discipline.

Overtime

On some occasions, they may be required to render overtime

work (work beyond their regular work hours) or to work during

their rest day or holiday.

If they are a Rank and File employee, they are entitled to

overtime pay. Overtime should have prior approval through the

Overtime Request Form. Without this form, their overtime work may

not be credited for payroll purposes. They are entitled to the

overtime pay rates for their overtime work as provided for by

law.

Work Attire

The Store supervisor is required to wear business attire and

closed leather shoes. The rest of the employees shall be provided

with uniforms they required to wear inside and outside the

workplace. They should also wear safety shoes for protection.

Wash days will be Saturday (for some employees who required to

attend work on this day). They are allowed to wear casual clothes

expect rubber slippers, shorts, and skimpy attires.

Proper grooming is also required for the employees

especially among the sales staff and roving salespersons. Short

haircut for male employees and proper hair style and light and

light make up for female employees, and clean nails are observed.

Identification Cards

Employees shall be provided with identification card that

they must wear at all times inside company premises and

especially on the outside operations (selling, delivery/roving

people).

Personnel Records

Employees’ personal records must be kept up-to-date to

insure that the company can give their employees the service and

opportunities to which they are entitled.

Health and Safety Work

All employees are expected to observe healthy and safety

measures set up by the company. These include maintaining the

cleanliness of equipment and work areas, proper use of comfort,

rooms, and observance of personnel hygiene, proper waste disposal

and wearing of appropriate uniform for proper grooming.

SALARY ADMINISTRATION

Payment of Salaries

Their salary shall be on cash basis. Their pay slip shall

reflect their regular earnings, extra earnings like overtime and

holiday pay, and deductions for withholding tax, SSS and

PhilHealth for the pay period.

Pay days are scheduled at the end of the month for store

supervisor and at 15th day and the end of the month for the rest

of the employees.

Paid Number of Days

Employees paid on a daily basis are on a no work, no-pay status.

PERFOMANCE EVALUATION

Performance Appraisal

The company follows the Pay-per-Performance philosophy.

Therefore, the regular performance assessment is very important.

Periodically, the store supervisor will evaluate the

performance of the sales staff based on certain criteria. The

company may respond appropriately, including termination, if your

performance consistency falls below standards.

EMPLOYEE BENEFITS AND PRIVILEGES

Paid Holidays

All employees are entitled to full pay for the following

holidays even if they do not work on these days:

New Year’s Day (January 1)

People Power Day (February 25)

Holy Thursday

Good Friday

Araw ng Kagitingan (April 9)

Independence Day (June 12)

Labor Day (May 1)

Ninoy Aquino Day (August 21)

National Heroes’ Day (Last Sunday of August)

All Saints Day (November 1)

Eid al-Fitr (based on Islamic Calendar)

Bonifacio Day (November 30)

Christmas Day (December 25)

Rizal Day (December 30)

New Year’s Eve (December 31)

However, upon the declaration of the Rationalizing the

Celebration of National Holidays Law or the Republic Act 9492, it

is required to the employees to work on the dates given above if

it is not a religious event.

If the employees are required to work on the Monday prior to the

holiday, they will receive holiday premium as additional pay.

SSS and PhilHealth

All employees of the company must register with the Social

Security System (SSS) and are therefore entitled to all its

benefits and services. These are made possible through the SSS

deductions from their pay plus the company’s corresponding

monthly contributions.

SSS provides the following benefits:

Sickness Pay

Maternity Pay

Disability Pay

Loans – Salary, Educational Calamity, Housing, Stock Investment

Funeral Benefit

Death Benefit

Retirement Benefit

PhilHealth shoulders part of the employees’ hospital bills.

SEPARATION

Resignation

The company would like their employees to stay on and grow

with it as long as possible. However, some factors may arise

which may impel them to resign voluntarily. In such case, they

are expected to inform the Store Supervisor of their decision and

submit a resignation letter allowing at least 30 days’ notice.

Their clearance shall be prepared in their last working day.

Termination

In other cases, it can be the company who may wish to

terminate their employees’ services. Employee may be terminated

if they fail to improve their performance even after repeated

warnings, or if the grossly violate any company rules and

regulations.

CODE OF CONDUCT

RATIONALE

Company Rules and Regulations, herein embodied as part of the

Code of Conduct (thereafter referred to as “Code”) re-established

to guide all employees in their work behavior and performance.

These are necessary to ensure the orderly conduct of the business

to afford protection to both the company and its employees.

When violation of the Company rules and regulations occurs,

disciplinary action is imposed to correct rather than punish the

individual. Disciplinary action may vary depending on the

history, circumstances and gravity of the offense. In all

instances, the employees shall be treated fairly and accorded his

right to due process.

RESPONSBILITY

The code implies to all employees, regardless of status and

location. It is every employee’s responsibility to know the

company rules and regulations and to be guided by such work

conduct and performance.

DUE PROCESS

Every employee shall be accorded due process in case of

violation of any company rules and regulations prior to the

imposition of any disciplinary action. This means providing the

employee many opportunities to explain his side, and giving

notice of the disciplinary to be imposed and the cause for such

in conformity with these guidelines:

1. The Store Supervisor shall inform the employees about the

violation and direct him in writing to submit a written

explanation within forty-eight hours.

2. The Store Supervisor shall conduct an investigation of the

incident.

All records pertaining to the case proceedings shall be kept in

the employee’s 201 file.

DISCIPLINARY ACTION

Disciplinary action is imposed in progressively increasing

weight, as follows;

Written Warning – written admonition given to an employee who has

committed, for the first time, an infraction of Category A

Company rules and regulations. This will include warning that

repetition of the same offense shall be dealt with more severely.

Stern Reprimand – a written stern reprimand which is given to an

employee who has committed a Category A offense for the second

time, or Category B offense for the first time.

Suspension – a forced temporary absence from work imposed as a

penalty for gave offenses or repeated infractions. Days of

suspension refer to the number of working daysan employee is

required to be out of work. An employee is deprived of his pay

for the period of his suspension.

Termination/Dismissal – imposed when the employee repeatedly

violates the same offense, for which warning, reprimand or

suspension have previously been imposed, and when such offense/s

are already of such nature that they constitute just cause or

reasonable ground for dismissal under the Labor Code.

Preventive Suspension – may be imposed on an employee pending

investigation of his case, if his presence poses a serious and

imminent threat to the life of properly of the company or its

employees. This should not last more than thirty days.

Payment of Damages – over and above the penalties mentioned, the

employee may also be required to pay the value of any property

damaged/lost due to his negligence of act.

TABLES OF DISCIPLINARY ACTION

Offenses shall be classified under four categories, i.e.

Category A., Category B, Category C, and Category D. The

disciplinary action may be imposed hall depend primarily on the

gravity of the offense and may be influenced by mitigating or

aggravating circumstances surrounding the cases. As a rule,

however, the disciplinary actions for each category of offense

are as follows:

CATEGORY OF OFFENSES DISCIPLINARY ACTION

Category A

1st Offense Written Warning

2nd Offense Stem Reprimand

3rd Offense 1-5 working days

suspension

4th Offense 6-10 working days

suspension

5th Offense Dismissal

Category B

1st Offense Stem reprimand or 1-

5 working

Days or Suspension

2nd Offense 6-10 working days

suspension

3rd Offense 6-30 working days

suspension

4th Offense Dismissal

Category C

1st Offense 1-15 working days

suspension

2nd Offense 11-15 working days

suspension

3rd Offense Dismissal

Category D

1st Offense Dismissal

TABLE OF OFFENSES

A. NEGLIGENCE OF DUTY

CATEGORY

1. Failure to report immediately a personal injury occurring on

company time or within company property or premises.

A

2. Receiving visitors during office/operation hours

without prior permission. Receiving or making

excessive or lengthy unofficial telephone calls.

A

3. Failure to notify the Store Supervisor of any changes

in personal data such as address, civil status, etc.

within seven working days from such change/s.

A

4. Shortage or overage of daily cash collection by sales staff

A

5. Holding unauthorized or unofficial meetings during

company time. B

6. Loafing / wasting time, prolonging rest periods for more

than

what is authorized, or loitering in comfort rooms,

co-employees workplace away from the subjects assigned

workplace while on duty.

B

7. Leave place of work during working hours without

permission

from store supervisor/administrative assistant for

leaving B

the company compound without permission at any time

before

the end of the employees work shift.

8. Malingering or feigning illness to avoid doing assigned

work to

avoid returning to work. B

9. Sleeping or napping on company time while on duty.

B

B. DISHONESTY

1. Any attempt to falsify or paid travel expenses, reports,

D

receipts, invoices or any other documents, upon

which reimbursed is based.

2. Bribery or offering or accepting anything of value in

exchange D

of job, work assignment, work location or favorable

condition to

employment.

C. OFFENSES AGAINST AUTHORITY

1. Any act consulting disrespect to or utter contempt for

C

Company Authorities.

2. Any act which constitute a threat or intimidation

D

Against the person of a company authority with the intent

of causing embarrassment, harm or bodily injury.

3. Refusing to accept or carry out official assignments

D

Issued by the immediate superior or any senior officer.

D. OFFENSES AGAINST PERSONS

1. Any attempts to inflict or cause to any bodily injury

D

having in fact inflicted or caused bodily injury while

inside the company premises during company time.

2. Sexual Harassment.

D

E. OFFENSES AGAINST PROPERTY

1. Driving company vehicles without authority or

C

unauthorized repair of such vehicles expect emergency

situations.

2. Defacing company properties, tampering, printing of

C

walls or façade of building and any other forms of

vandalism.

3. Theft, robbery, or appropriation for personal gain or

benefit. D

4. Any company property, regardless

the amount of property.

5. Engaging in authorized sales company property for

D

personal benefit.

F. OFFENSES AGAINST PUBLIC MORALS

1. Showing or exhibiting pornographic materials,

D

Pictures or literature on company time and on company

premises.

2. Showing discourteous acts towards customers.

B

3. Willful and repeated violation of traffic rules and

regulations B

by roving salesmen,

4. Borrowing money from subordinates.

C

G. OFFENSES AGAINST PUBLIC HEALTH AND SAFETY

1. Disregard of any notice or sign such as smoking in

B

“NO Smoking” areas.

2. Refusal or failure to follow safety rules.

B

3. Working while under the influence of liquor,

C

Intoxicating drinks prohibited drugs.

4. Having a serious contagious disease which may

D

endanger health of the employees and knowing about it,

fails to report of willfully withholds such information

to the company.

H. SECURITY

1. Failure to wear, or improper wearing of company

A

identification card or prescribed uniform or alternation

of uniform.

2. Causing loss of accountable forms or documents due to

B

careless or negligence.

3. Refusal to submit to or failure to meet security

C

requirements of the company.

4. Unauthorized possession or carrying firearms,

D

explosives or other deadly weapons inside the company

premises.

I. ATTENDANCE

1. TARDINESS – exceeding the grace

period of 30 minutes.

A

Tardiness shall be considered as one offense.

2. ABSENCE WITHOUT OFFICIAL LEAVE – each day

B

Absence is a separate offense.

J. OTHERS

Conviction of any criminal offense

under the law.

D

5.8 Legal Requirements

Upon establishing the business:

1. Registration of Business Name – before putting up a

business, an ideal name should be considered most. It represents

the identity of the business. Proposed business names should be

checked on the Department of Trade and Industry to make sure that

there is no business that uses the proposed names. Thinks of at

least five (5) proposed names for the business so that it will be

easier to change in case the proceeding business is unavailable

anymore. If the proposed business name is approved, it should be

applied as the official name of the business.

2. Articles of Partnership/Incorporation – this is mainly

for business with the partnership or corporation form. It is

submitted to the Securities and Exchange Commission for

registration of the business. This includes the name of the

company business, the company profile, the organization format or

chart, the capital investment or paid-up capital, and other

required information. Attach the filled-up SEC Form designed for

the registration of the partnership/corporation and submit to the

SEC with the corresponding fees.

3. Business Permit Application – this is mainly required

when someone in the community plans to put up his own business,

whether it is a sole proprietorship, partnership, corporation or

a cooperative business. Fees are subjected to be paid upon

application.

4. BIR Form No. 1903 (Application for Registration for

Partnership/Corporation) – this is the duly required to be

accompished by corporations, partnerships, government agencies nd

instrumentalities, and local government units. This will be

accomplished with the Revenue District Office having jurisdiction

over the principal place of business or branch/regional office.

5. BIR Form No. 1906 (Application for Authority to Print

Receipts and Invoices) – this is needed when the establishments

will issue printed receipts upon sale. This is accomplished on

the Revenue District Office.

6. Barangay Permit – this is obtained from the Bureau of

Fire Protection prior to the activities of the establishment,

which are prone to fire together with the completeness of safety

precautions needed in case of fire such as fire estinguisher.