Board of Directors (5)

Chief Executive Officer (1)

Productions Manager (1)

Chemist (1) Purchasing Officer (1) Supervisor (1)

Factory Workers (8)

Maintenance Personnel (2)

Delivery Personnel (2)

Security Guard (4)

Human Resource Manager (1)

Marketing/Sales Manager (1)

Sales Agent (5)

Chief Accountant (1)

Accountant (1)

Treasurer (1)

Internal Auditor (1)

CHAPTER 3MAMAGEMENT PLAN

Introduction

The management aspect involves 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

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.

- Should have at least 3 years of working experience.

- 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.

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.

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

- Must be a graduate of Bachelor of Science in Accountancy.

- With professionalism and good communication and interpersonal skills.

- Must be a graduate of Bachelor of Science in Accountancy.

- With good communication and interpersonal skills.

statements, per account balance and transaction level.

Chemist - 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.

Treasurer - Receives and authorizes disbursements and receipts of funds.

- 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.

Security Guard - Monitors the in and out of employees and other persons within the entity.

- Guards the company’s properties.

- Responds to alarms and disturbances

- Male- 25-35 years old- Must have no physical

disability.- Highly trained.- 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.

- 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 QualificationsPurchasing 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.

Supervisor - Instructs and guides the workers in their duties.

-  Ensure that a group of

- Must be a graduate of any business courses.

- Must know how to manage

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.

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 equipments

- Ensures the cleanliness and orderliness of the production site.

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

knowledge and experience on machines and equipments.

- 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

III. Compensation

PositionNumber of Employees

Monthly Salaries and Wages Per Employee

Salaries and Wages Per

Month

Salaries and Wages Per

Year

CEO 1 20000 20000 240000

Vice-President 1 19000 19000 228000

Board of Directors 3 19000 57000 684000

Internal Auditor 1 13000 13000 156000

Chief Operating Officer 1 16000 16000 192000Productions Manager 1 14000 14000 168000Chemist 1 10000 10000 120000

Purchasing Officer 1 9000 9000 108000Supervisor 1 10000 10000 120000

Factory Workers 8 7000 56000 672000

Maintenance Man 2 7000 14000 168000

Delivery Man 2 6000 12000 144000Security Guard 4 6000 24000 288000Human Resource Manager 1 13000 13000 156000Marketing/Sales Manager 1 14600 14600 175200

Sales Agent 5 10000 50000 600000

Chief Accountant 1 12000 12000 144000

Cost Accountant 1 11000 11000 132000Treasurer 1 9500 9500 114000Grand Total 37 226100 384100 4609200

Table 3.5 Compensation

IV. Business Monitoring

Pre investment Activity

Before the execution of the business, adequate knowledge should be acquired

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.

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.

Issuance of Stocks and Application of Loan

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. In addition to that, the

company will also employ financing the operation through borrowing loan from Banco

De Oro (BDO).

Site Preparation

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 a year for the construction to be finished and polished.

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

.

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.

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.

Advertising and Promotion

E-business will be the primary way of the company to advertise and promote

products. Creating a web page that will enable all manufacturers grab an easy access to

ordering activated carbon will be the starting point.

Aside from e-commerce, leaflets and printed materials such as tarpaulin, banners

and streamers will be placed to every town in Quezon. Radio and TV advertisements will

soon follow as the company expand.

Advertisements and promotions will start as soon as the company is almost 75%

ready to operate.

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

Employment

One month 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 be hired on a six-month contract and

it’s renewable subject to the working performance of the employee.

o Hiring

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.

o 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.

o Termination

Employees who persistently and heavily violate the policies of the organization

can be subjected to termination.

Office Hours

Carbon plus Corporation’s office is open Monday through Friday 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 (40) Office working hours in a week per personnel.

Factory Hours

Carbon Plus Corporation’s Factory will operate six days per week from Monday

through Friday. Working hour starts at 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.

At some point in time, there are possibilities that the CEO 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.

Working days

There will 300 working days for factory employees and 248 working days for the office

personnel. 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 paid weekly depending

on the number of hours they have worked.

Months Number of Days

Saturdays Sundays Non-working Holidays

Operating Days

January 31 4 4 1 26February 28 4 4 24March 31 5 5 3 23April 30 4 4 1 25May 31 4 4 1 26June 30 5 5 1 24July 31 4 4 27August 31 4 4 2 25September 30 5 5 25October 31 4 4 27November 30 4 4 2 24December 31 5 5 2 24TOTAL 365 52 52 13 248

Table 3.6 Office working days

Months Number of Days

Sundays Non-working Holidays

Operating Days

January 31 4 1 26February 28 4 24March 31 5 3 23April 30 4 1 25May 31 4 1 26June 30 5 1 24July 31 4 27August 31 4 2 25September 30 5 25October 31 4 27November 30 4 2 24December 31 5 2 24TOTAL 365 52 13 248

Table 3.7 Factory Working Days

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.

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

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.

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.

Employee Classification

The eligibility to participate in various Carbon Plus Corp. Benefit Plans and other

programs is based upon the classification as an employee. While the Carbon Plus

Corporation with its rules and policies apply equally to all hourly and salaried employees,

temporary or casual employees may not utilize certain benefits and programs. Please

refer to the definitions below to determine employee classifications and eligible

employees:

1. Full- time employee- an employee who is employed on a scheduled basis for a

normal workweek, which is 40 hours per week for the office personnel and 48 hours

for the factory workers, including overtime and who is not classified as part-time,

temporary, or causal.

2. Casual Employees- a person who may not be called by the company at any time for

employment on a non-scheduled and non- recurring basis, and becomes an employee

of the company only after reporting to work, and for the period of time during which

the person is working.

Probationary Period

A six-month probability 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 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.

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.

Overtime Work

Article 87 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.

For Work Performed on Rate of Pay, Based on

Daily Rate

Rate of Pay, Based on Overtime Rate

Rest 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 3.8 Rates on Holidays and Overtime(source: Cost Accounting by Nenita Mejorada)

Paid Holiday

As in accordance with the labor code 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:

Table 3.9 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 25

Special Non-Working Holiday Date

Ninoy Aquino Day August 21

All Saints Day November 1

Last Day of the Year December 31

Table 3.10 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.

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.

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.

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.

Philhealth Pag-ibig

Social Security System

Gantt Chart

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 3.11. Table form for estimated period to start the operation