MANAGEMENT STUDY

BASIC CONSIDERATIONS

For a business to have the best possible chance of succeeding, it is very

important to consider the basic and fundamental aspects of the business from the

start.

As the saying goes, if you fail to plan then you plan to fail - this is certainly the

case when applying it to the world of business. Businesses need to be built on

solid foundations and this of course needs to be done from the very start.

In line with this, the partners who at the same time will comprise the

management will be assigned to a specific field or area of responsibility. Each of the

partners will serve as General Manager, Managers, Accountant, and Cashier. All

members should perform their specific tasks in line with the interest of the

partnership and not in line with their own interest and at all times, they should be

held accountable for their acts.

Form of Business Organization

Mudsplash decided that the firm will be formed as a general partnership that is

engaged in servicing business. The proponents chose to have a partnership because

it is easier to create , it can raise more profits compared to a sole proprietorship,

there will be more power enhanced by more owners and income included and taxed

on partners personal tax return (Gitman, 2012). In partnership, there will be more

available brain power and managerial skill. Wherein, it is more effective when there

are two or more persons who are making the decision.

General partnership is a partnership where all of the partners are general

partners who are liable to the extent of their separate property after the partnership

assets have been exhausted (Soriano, 2010). The proponents decided to have a
general partnership for the reason that it will assume that profits, liability and

management duties are divided equally among partners. Another advantage of a

general partnership is that the company does not have to register with the city

government and pay often heavy fees, as compared in a corporation or a limited

liability company.

On the other side, partnership also have disadvantage. One of which is the

unlimited liability of partners, where a partner is an agent of another partners

liability. Another is when a partner a partner dies, the partnership will be dissolved.

The partnership will be formed by five (5) partners that will contribute for a total

amount of thirty million pesos (Php 30,000,000.00). All of the partners will be

considered general partners. The names of the partners are presented below.

Name Type of Partner Capitalization

Baguling, Judy Ann General Partner Php 6,000,000.00
Saguilot, Karen Vera C. General Partner Php 6,000,000.00
Sison, May General Partner Php 6,000,000.00
Torida, Lean General Partner Php 6,000,000.00
Tostos, Rhoda General Partner Php 6,000,000.00
Total Php 30,000,000

The partnership will have a total capital of thirty million pesos (Php

30,000,000.00). The partners must have a trust with its co-partners. That, it is

essential that in putting up a business with a partner or partners, there must be

confidence and trust in order that the company will have good foundation.

There are requirements that must be fulfilled in order to form a partnership.

Based on what Securities and Exchange Commission has required, the following are

what is needed to be submitted in concerned Local or National Government Office.

Mayors/ Business Permit

Latest Mayors Permit
Barangay Clearance
Community Tax Certificate with Gross Receipt
Financial Statement (Partnerships and Corporations)
BIR Clearance
 SSS Clearance
ECC (or CNC)
DTI Registration
SEC Registration (Partnerships and Corporations)
Barangay Clearance
Bill of Materials
Tax Declaration

COMPANY CORE VALUES

1. RESPONSIBILITY- Every employees and staffs must be accountable in fulfilling their

duty.
2. RESPECT The entity wants to build an environment that promotes respect in

dealing with customers and also with the other personnel in order to create creating

a harmonious workplace.
3. CONTINUOUS IMPROVEMENT- it is an ongoing effort to improve the services or

processes. These efforts can seek incremental improvement over time or

breakthrough improvement all at once

4. TEAMWORK Even though the entity is composed of several individuals with many

differences, they must to work as a team to achieve the common goal.

5. CUSTOMER SERVICE- Every workers/Staffs must take care of the customer's needs

by providing and delivering professional, helpful, high quality service and assistance

before, during, and after the customer's requirements are met.

ORGANIZATIONAL CHART
OFFICERS AND KEY PERSONNELS
 Labor Requirement

Workforce is an important aspect in every part of an organization. The Mud

Splash will need qualified employee to operate effectively and efficiently to attain

the companys objectives. Thus the following are the needed employees:

One (1) Accountant to prepare financial statements

Four (5) Mud Splash Staff and to assist customers
Two (2) Mechanical/Technical personnel for repair, maintenance and operating the

equipment
Two (2) Cashiers to received payments from customers
Two (2) Security Personnel to maintain safety of customers and employee
Ten (10) Massage Therapist for relaxation purposes of the customers

Personnel Selection

Personal Selection is the methodological process used to hire individuals. Job

description summarizes the responsibilities and duties of a given position that an

employee will undertake. Job qualifications are the special skills, experience and

knowledge that are necessary in order for an employee to be employed in a certain

position.

General Manager

Job Description

to be appointed by the partners to oversee the entire operations of the business

and formulate policies and strategies that maximizes the value of the business
settles any dispute or jurisdictional conflicts among employees
he communicates the overall financial and management status of the business to

partners

Job Qualifications

must be a graduate of BSBA Major in Management or in any related field

must at least have two (2) years managerial skills
 computer literate
must be at least 22-40 yrs of age

Accountant

Job description

responsible for preparation of financial statements

responsible for Journalizing daily transactions
responsible for the safety of receipts and documents
responsible for preparing payroll

Job Qualifications

must be a graduate of Bachelor of Science in Accountancy

must be a Certified Public Accountant
with excellent communication skills
familiarity with computer technology and knowledge of software program related to

the field

Mud Splash Staf

Job description

responsible in assisting the customers

assist the customers in exploring the mud center
responsible in creating a friendly environment

Job Qualifications

college level attainment

with excellent communication skills
have the ability to develop strong customers relationship

Cashier

Job description

responsible in receiving payments from customers

responsible in managing all cash transaction
responsible in counting cash on hand (drawers) and check if there is adequate

change.

Job Qualifications
 have the ability to develop strong customers relationship
with excellent communication skills
at least college level
computer literate and have mathematical skills

Mechanical/Technical Personnel

Job description

responsible for repair and maintenance of equipments and machineries

responsible in operating equipments and machineries

Job Qualifications

must be a degree holder of mechanical or electrical engineering

with outstanding communication skills
must be single

Janitor

Job description

responsible in cleanliness and orderliness of the Mud Splash

Job Qualifications

at least high school graduate

must be hardworking and responsible

Massage Therapist

Job description

responsible for massaging the client body for relaxation purposes

Job Qualifications

take a course that's recognized by one of the professional bodies for massage

therapy

Hands-on experience in body massage therapy

 BUSINESS POLICIES

1. Employment

It governs employment practices and labor relations. It also identifies the

rules and standards regarding employment such as pre-employment policies, labor

conditions, wage rate, work hours, employee benefits, and termination

of employees.

Hiring
a. Equal Employment Opportunity

Employment decisions shall be based on merit and business needs, not on

race, color, citizenship, marital status, national origin, ancestry, gender, sexual

orientation, religion, physical or mental disability and political affiliations.

b. Consanguinity

Applicants up to the third degree of consanguinity with other employee shall

be employed.

c. Tests and Interviews

Tests and interviews shall be conducted during the recruitment and selection

of employees. The company shall see to it that the test and interviews will be

conducted on a fair basis and in an honestly manner.

Employees
a. New Employee Orientation and Training
Upon employment proceeding to work, employees and staffs will be oriented about

their duties and responsibilities, rules and regulations.For mechanical and technical

staffs and Mud splash staffs they shall undergo training.

b. Causes for Disciplinary Actions
Failure to wear established dress code while at work.

Loitering, wasting time and being in an area where the employee has no

legitimate business.

Creating unsanitary conditions or practices.

 Smoking in non-smoking areas and during working hours.

Improper conduct and acts of disrespect to fellow employees, visitors and

suppliers.

Provoking, instigating, deliberately assaulting or attempting to inflict harm to

fellow employee.

Entering the company site during off hours without authorization.

Any act of vandalism and destroying any part of the building.

Drinking alcoholic beverages in company site during working hours.

Unauthorized operation of machinery and equipment Willful holding back or

slowing down to limit work output.

c. Causes for Termination

Willful destruction or damages to company property; any connivance to commit

destruction of company property.

Willful neglect of employee in the use of company equipment causing or

resulting to injury to other employee.

Possession of deadly weapons such as firearms and explosion inside the

company site.
Theft of property belonging to another person or to the company.
Introducing and/or selling prohibited drugs or alcohol within company sites.
Abuses of position in the company in an attempt to gain profit or take

advantage of employees.
Damaging company reputation, spreading false information about the company

and/or its products.

Falsely representing one to be an officer, agent or representative of the

company or any of its officers.

Commission of a crime or offense against any person in the company.
Engaging in work while under the influence of liquor or any intoxicating drug.
Embezzlement of company funds.
Obtaining or releasing company properties through fraud or deceit.
2. Time Keeping and Attendance Policies
All employees are required to tell in advance their inability to work or to

come to work on time unless with advance approval.

Employees who make a request in advance (at least 24 hours) and are
 approved for a scheduled day off, either paid or unpaid will not have any absence

counted against them.

Management will attempt to accommodate all reasonable requests for

scheduled leaves.
Examples are:
Vacations or programmed leave
Wedding of self or family member
Funeral of a family member
Hospitalization or other scheduled medical appointments
Personal or family tragedies

3. Payroll and Pay Compensation Matters

Regular Holidays
Every employee covered by the Holiday pay rule is entitled to his daily basic

wage for any unworked regular holiday. This means that the employee is entitled to

at least 100% of his basic wage even if she/he did not report to work, provided

he/she is present or is on leave of absence with pay on the work immediately

preceding the holiday.

Work performed on that day merits at least twice (200%) of the basic wage of

the employee. Where the holiday falls on the scheduled rest day of the employee,

work performed on said day merits at least an additional 30% of the employees

regular holiday rate for a total of at least 260%.

There are 11 regular holidays in a year under Executive Order No. 203,

namely:

List of Regular Holidays in the Philippines

New Years Day 1-Jan

Maundy Thursday Movable Date
Good Friday Movable Date
Araw ng Kagitingan 9-Apr
Labor Day 1-May
Independence Day 12-Jun
National Heroes Day Last Sunday of August
Bonifacio Day 30-Nov
 Christmas Day 25-Dec
Rizal Day 30-Dec
Eidl Fitr Movable Date

Special Days

Executive Order No. 203 list down two (2) special days that shall be observed:

All Saints Say (November 1) and the last day of the year (December 31). During

special days, the participants of no work, no pay applies and on such other special

days proclaimed by the President or congress.

Workers who were not required or permitted to work on those days are not by

law entitled to any compensation.

On the other hand, work performed on special days merit additional

compensation of not less 30% on top of the basic pay or a total of 130%. If the

worker is permitted or suffered to work on said day which maybe his/her scheduled

rest day, he/she is entitled to at least 50% over and above the basic pay or total

150%.

Absences

All covered employees shall be entitled to holiday pay when they are on leave of

absence with pay. Employees who are on leave of absence without pay on the day

immediately preceding a regular holiday may not be paid the required holiday pay if

they have not worked on such regular holiday.

The company shall grant the same percentage of the holiday pay as the benefit

granted by competent authority in the form of employees compensation or social

security payment whichever is higher, if they are not reporting for work while on

such benefits.
Where the day immediately preceding the holiday is a non-working day in the

establishment or the scheduled rest day of the employee, he/she shall not be
 deemed to be on leave of absence on that day, in which case he/she shall be

entitled to the holiday pay if he/she worked on the day immediately preceding the

non-working day or rest day.

Employees who are absent on working days are not compensated and the

corresponding day or days they were absent except for authorized leaves pay.

Premium Pay

Premium pay refers to the additional compensation required by law for work

performed within eight hours on nonworking days, such as rest days and special

days.

Benefits

The minimum statutory premium pay rates are as follows:

a. For work performed on rest days or on special days. Plus 30% of the daily rate of

100% or a total of 130%.

b. For work performed on a rest day which is also a special day. Plus 50% of the daily

rate of 100% or a total of 150%.

c. For work performed on a regular holiday which is also the employees rest day. Plus

30% of the regular holiday rate is 200% based on his daily basic wage rate or a total

of 260%.

Overtime Pay

Overtime work is performed beyond eight hours a day. Every employee who is

entitled to premium pay is likewise entitled to the benefit of overtime pay.

The minimum overtime pay rates vary according to the day the overtime work

is performed, as follows:

a. For work in excess of eight hours performed on ordinary working days: additional

25% of the hourly rate.

b. For work in excess of eight hours performed on a scheduled rest day, a special day
 and a regular holiday: additional 30% of the hourly rate on said days.

Thirteenth Month Pay

The thirteenth month pay is computed by total basic salary earned for the year

exclusive of overtime, holiday and night shift differential pay divided by 12 = 13 th

month pay.

Leaves

The three types of leaves which employer is obliged to extend to its

employees are:

a. Service incentive leave (SIL) is given to every employee who has rendered at least

one year of service is entitled to a yearly service incentive leave of five days with

pay.

The service incentive leave may be used for sick and vacation leave

purposes. The unused service incentive leave is commutable to its money

equivalent at the end of the year. In computing, the basis shall be the salary rate at

the date of completion.

b. Maternity Leave
A female member who has paid at least three monthly contributions in the 12 th

month period immediately preceding the semester of childbirth or miscarriage shall

be paid a daily maternity benefit of 100% of her average daily salary credit for 60

days or 78 days in case of caesarian delivery. The payment of daily maternity

benefit shall be a bar to the recovery of sickness benefit for the same compensable

period.
The maternity leave shall be extended without pay on account of illness medically

certified to arise out of the pregnancy, delivery, abortion or miscarriage, which

renders the woman unfit for work, unless she has earned leave credits from which
 such extended leave may be charged.
The maternity leave shall be paid by the employer only for the first four deliveries

by a woman-employee.
c. Paternity Leave
Refers to the benefit granted to a married male employee allowing him not to report

for work for seven days (for each delivery for the first four deliveries of wife) but

continues to earn the compensation, therefore, on the condition that his spouse has

delivered a child or suffered miscarriage for purposes of enabling him to effectively

lend support to his wife in her period of recovery and/or in the nursing of the newly-

born child.
4. Health, Safety and Security

Before hiring, the employees shall undergo medical and physical

examination and shall have to obtain sanitary health permit.

For security reasons, identification cards are provided for the workers to be

worn inside the company premises at all times.

Production workers are required to wear their uniforms on the scheduled

date. They will wear white T-shirt during Monday and Thursday, while they will wear

blue during Tuesday and Friday, denim jeans and sneakers. And Wednesday will be

their civilian day. By workers directly connected to the manufacturing process and

by all people who enter the production area.

Right of employees

Right to be respect by others.

Workers have the right to be respected by his or her co-workers, clients and

even their employees.

Right to remuneration for service rendered.

Every worker of the partnership has the right to receive their salary as

compensation for what they have rendered to the partnership.

 Right to adequate working conditions.

The workers must be provided with a convenient working place where they

could perform their task safely and effectively.

Right to Collective Bargaining

Workers have the right to come to an agreement with the partnership in

cases where dispute arises or when unfavorable management decisions are made

against the workers.

Right to concerted activities.

Responsibilities of the Employees

To protect the right of others

Workers must have high sense of respect and consideration for all

individuals not only in the partnership but also to other people in the society.

To fulfill obligation to contracted service to employers

Every worker of the partnership must be responsible to their

respective job to finish.

To protect and conserve materials

The partnership has various materials and equipment that must be

preserved by the workers so as not to delay or impair the operations of the

business.

To observe terms and conditions of employment

The employees as well as the employer must see to it that it satisfy

the terms in conditions stated in the contract of employment.

To observe peace and order

Every worker is encouraged to keep the place safe and convenient

for the concern of the individuals in the partnership so as to avoid tension or

troubles.
 EMPLOYEE SELECTION AND HIRING PROCESS

The partners shall be responsible in the employee selection and hiring.

The manner in which the employees work has a direct effect on the efficiency

and effectiveness of the business and its way in attaining its goals or objectives.

Therefore, the management will carry out training programs needed to ensure these

employees will be capable and are assigned to the right job.

RECRUITMENT

Vacancies in position shall be broadcast in public through social mediums:

Flyers, radio, and newspaper notices. All employees must have integrity and sense

of responsibility.

APPLICATION REQUIREMENTS

Applicants will be hired on the basis of educational qualifications, skills and

ability. The partnership has the freedom to hire employees upon qualification that it

may deem necessary.

The company requires the aspiring applicant to submit the following:

Curriculum vitae/resume with recent 2x2 picture

Transcript of records/ Form 138

Birth certificate

Health certificate

Police and NBI clearance

SSS number, Phil Health number, Tax Identification Number

Name of qualified applicants based on their documents submitted will be

informed through phone calls for a preliminary review. The final interview would

immediately follow for applicants who passed the interview and names of selected

applicants will be posted after the final assessment.

Employee Uniform Policy

A uniform will be by the management and is a compulsory policy, worn during

working hours and within the business premises. This is for them to be presentable

and be recognized as an employee of the gallery. Part of their uniform is a name tag

for easy communication with customers.

Promotion

Through the manager recommendation an employee will be promoted with the

owners approval. An employee rendering a year service is the ones to be

prioritized. If in case that an employee fails to do his/her job they are subjected to

be moved in lower rank or be terminated based on the employees failure.

Resignation in Policy

An employee who decides to resign from the post is required to file a resignation

letter one month prior to the concurrence for clearance purposes. Those with

pending obligation shall not be permitted to leave the company.

Retirement of the Employee

Optimal retirement for the employees at the age of fifty (50) can be done. Whereas

the mandatory retirement is at the age of sixty (60).

 Benefits of having workplace policies

Well-written workplace policies:

are consistent with the values of the organization

comply with employment and other associated legislation

demonstrate that the organization is being operated in an efficient and businesslike

manner

ensure uniformity and consistency in decision-making and operational procedures

add strength to the position of staff when possible legal actions arise

save time when a new problem can be handled quickly and effectively through an

existing policy

foster stability and continuity

maintain the direction of the organization even during periods of change

provide the framework for business planning

assist in assessing performance and establishing accountability

clarify functions and responsibilities.

PROJECT SCHEDULE