CHAPTER IV

MANAGEMENT ASPECT

I. MANAGEMENT DESCRIPTION

The study involves in reaching organizational goals in a useful and competent

manner using functions of planning, organizing, influencing and controlling

organizational resources. Management is the process of reaching organizational goals by

working with and through people and other organizational resources. Management is a

technique of extracting work from others in an integrated and coordinated manner for

realizing the specific objectives through productive use of material resources.

Management is a manner of mobilizing the physical, human and financial resources and

planning their utilization for business operations.

The researchers determined the form of ownership of the proposed business and

examine the organization which includes the pre-operating activities, legal requirements,

laws in the local government that are implemented, local tax rate, workforce, hiring

process, salary, and benefits that are related in the form of business.
II. FORMS OF OWNERSHIP

The form of ownership to be adopted by “Dreamer’s Ice Cream” is general

partnership with the trade name of “iScream Team Partnership”. Based on Article 1767

of the New Civil Code of the Philippines, “By the contract of partnership two or more

persons bind themselves to contribute money, property, or industry to a common fund,

with the intention of dividing the profits among themselves. Capitalist partner is a

partner who invests money or properties while an Industrial partner is a partner who

invests skill or expertise in a partnership.

Table 25

Types of Partners/Capital Contributions

Partners Type of partners Capital Source of

Contribution Capital
Casimiro, Keizel F. Capitalist P107,142.86 Personal
Savings
Dela Cruz, Alvin G. Capitalist P107,142.86 Personal
Savings
Merejilla, Rogellyn S. Capitalist/ Industrial P107,142.86 Personal
Savings
Reyes, Melanie F. Capitalist P107,142.86 Personal
Savings
Romano, Pauline M. Capitalist P107,142.86 Personal
Savings
Senobio, Anna Rowena F. Capitalist/ Industrial P107,142.86 Personal
Savings
Umali, Jeramie C. Capitalist P107,142.86 Personal
Savings
TOTAL P750,000.00
 III. PRE-OPERATING ACTIVITIES

The pre-operating activities are needed to be done by the business partners to start

the business operation legally. During this activity the partners are going to Caloocan city

Hall to get necessary license and permits like Mayor’s Permit, Sanitary Permit, Business

Permit, tax declaration and Barangay Clearance. The partners will further go to Securities

and Exchange Commission (SEC) for the registration of the business. Also partners go to

Department of Trade and Industries and registered the name of the business. Also, went

to the Bureau of Internal Revenue (BIR) for the process of identification number of the

business.

IV. LEGAL REQUIRMENTS

The following are the needed requirements for the business to operate legally.

 Securities and Exchange Commission (SEC) Registration

 Department of Trade and Industry (DTI) Business Registration Certificate

 Barangay Clearance

 Mayor’s Permit

 Sanitary Permit

 Lease of Contract

 Social Security System (SSS) Certificate of Membership

 Bureau of Internal Revenue (BIR) Number and Partnerships Tax Identification

number
  Department of Labor and Employment (DOLE)

 Safety and Fire Permit

 Phil health Employer Number and Certificate

V. LOCAL TAX RATE

The Corporate Tax Rate in Philippines stands at 30 percent (30%). Corporate Tax

Rate in the Philippines averaged from 32.05 percent from 1997 until 2015, reaching an

all-time high of 35 percent in 1997 and a record low of 30 percent in 2009. Corporate Tax

Rate in Philippines is reported by the Bureau of Internal Revenue.

VI. GOVERNMENTAL LAWS APPLIED

Labor laws are body of laws, rules and regulations enacted or issued by the state

to promote the welfare of the employees and regulate their relation with their employees.

it is collection of laws governing the world of work or employment.(Protacio, 2010).

A. Minimum Wage Rate

Minimum Wage rate established in NCR is P481.00 (P466.00 basic rate + P15.00

COLA

B. Holiday Pay

During regular holidays if employee did work he/she is entitled to be paid double

if not he/she is still be paid with single pay. While during especial holiday he/she is
entitled to be paid a single pay plus 30% of their single pay. But if the employees did not

work the “no work no pay” policy will be observed.

C. Overtime pay

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 percent (25%) thereof. Work performed beyond eight hours on a

holiday or rest day shall be paid an additional compensation equivalent to the rate for the

first eight hours on a holiday or rest day plus at least 30 percent thereof.

D. Rest day

It is the required rest period of not less than 24 consecutive hours after every six

normal workdays. The employer shall determine the weekly rest day. However, the

employer shall respect the preference of employees as to their weekly rest day when such

preference is based on religious grounds.

E. 13th Month pay

13th month pay is a form of monetary benefit equivalent to the monthly basic

compensation received by an employee, computed pro-rata according to the number of

months within a year that the employee has rendered service to the employer.
VII. MANPOWER REQUIREMENTS

A. ORGANIZATIONAL CHART

Figure 23

“Dreamer’s Ice Cream” Organizational Chart

Managerial/ Industrial Partner

Partner1 ( Marketing/HRD)
Partner2 (Production)

Staff Staff

Figure 23 shows the Organizational Chart of Dreamer’s Ice Cream that indicates

its employees and their respective position.

 B. EMPLOYEES

Table 26

Types of Employees

Employees Number of Employees

Managerial/ Industrial Partner Two(2)

Staff Two (2)

Table 26 shows the employees of Dreamer’s Ice Cream and their respective

positions.

Employees: Job Description, Qualifications, Duties and Responsibilities

MANAGER (Industrial Partner)

 Concern for internal and external customer satisfaction.

 Recruiting employees

 Focuses on strategic expansion

 Responsible for maintaining the overall image of the store

 Manager must make sure his store is meeting the targets and earning profits.

 Oversees the function of the organization.

QUALIFICATIONS:

 Applicant must possess at least a Bachelor’s/College Degree.

 At least 1 year experience in related field.
 Proven ability in motivating a team.
 With very good communication skills (both oral and written)

STAFF/ CREW

 Concerns for the production of ice cream.

 Responsible for the ordering, and serving the customers.
 Helps in cleaning and maintaining the cleanliness of the store.

QUALIFICATIONS

 With or without experience on making ice cream.

 Willing to be trained.
 At least High school graduate.
 Must be 18 years of age or above.
B. HIRING PROCESS

Figure 24

Hiring Process

POSTING OF HIRING FOR VACANCIES

ACCEPTING OF APPLICANTS

BACKGROUND CHECK OF APPLICANTS

PREVIOUS EMPLOYMENT

FINAL INTERVIEW AND ORIENTATION

TRAINING

SUBMISSION OF REQUIREMENTS

ORIENTATION

START OF WORK
 Figure 24 shows the hiring and selection process of Dreamers Ice Cream. The first

step is posting of the notice informing the public that the newly opened business is in

need of qualified employees. Second is the accepting of applicants with their resume.

Third will be the background check of the applicant’s previous employment and profile.

If the applicant is qualified in the position, he/she can now proceed to the final interview

followed by the orientation for 2-day training process. After the training, if the applicant

is now capable enough to perform the job, the next step will be the submission of

requirements. After the submission of necessary requirements, the applicant can now

have their orientation, thereafter are now ready to start to work.

B. Standard Operating Procedure

Opening Procedure:

 Opening prayer before the store officially starts

 Work of the staff/crew will start at 8:00 am

 Employees must sign-in and out to the log book provided at the entrance table.

 Employees assign in the production department are required to change and wear

the appropriate and prescribe uniform. ( Apron, Hairnet, Cup or Visor)

 Employees should sanitize first tools and utensils before the production.

 Check all the materials/equipment needed in production process.

 Closing Procedure:

 All materials, equipment and tools must be cleaned, sanitized and kept on proper

storage.

 Putting waste together in the place easily seen by garbage collectors.

 Manager will record the ending inventory of the staffs to know the remaining

stock on hand.

 The manager will conduct a random check to the cleanliness in the whole

business premises.

 The managers will safe keep the sales into the vault.

 At 9:00 pm, the store will close.

C. Company Policies

 Dreamers Ice Cream will operate its business from 8:00 am to 9:00 pm Mondays

to Sundays, seven (7) days a week, including holidays.

 Wearing of prescribed clothing/uniform must be strictly observed.

 No wearing of jewelries during working hours. (Necklace, Ring, Earrings)

 Employees must be responsible for the cleanliness of their station.

 Clean as you go.

 No open wound.

 Employees should fit to work.

 Must wear their health I.D.

 No spitting.

 No bringing of liquor inside the business premises.

  Observe cleanliness all the time.

 Possession of fire arm or dangerous weapon inside the store premises is

prohibited.

 No smoking inside the business establishment.

 Proper hygiene is required.

D. Operating Hours

Dreamers Ice Cream will operate from 8:00 am to 9:00 pm Mondays to Saturdays.

The business will have one (1) hour lunch break for the employees, but will still operate

and accept orders.

F. Work Schedule

Table 27

Employees Schedule

DAYS (MONDAYS TO
POSITION SUNDAYS) BREAKTIME

Manager/Industrial 8:00 am to 5:00 pm 12:00 nn to 1:00 pm

Partner 1

Manager/Industrial 12:00 nn to 9:00 pm 4:00 pm to 5:00 pm

Partner 2

Staff 1 8:00 am to 5:00 pm 12:00 nn to 1:00 pm

Staff 2 12:00 am to 9:00 pm 2:00 pm to 3:00 pm

 Table 27 will show the working hours of the employees. Each will be given an

hour of break time for lunch.

F. Assignment Rotation

Each employee has their assigned task to be performed accordingly. The manager

will be the one who will oversee whether the business operation is doing well. They are

also responsible for the cleanliness and safety of the products before the business

operation.

G. Wage and Benefits

a. Basic Wage Rate

Table 28

Monthly and Annual Salary of Employees

DESIGNATION RATE PER MONTHLY ANNUALLY

DAY

MANAGER/INDUSTRIAL
PARTNER (2) P 600.00 P 31,200.00 P 405,600.00

STAFF (2)
P 481.00 P 25, 012.00 P 325,156.00

TOTAL P 2,162.00 P 56,212.00 P 730,756.00

Table 28 indicates the monthly and annual salary of the Dreamers Ice Cream

employees. Employees are evaluated in accordance with their respective positions in the
business. Compensation system will be 15th and 30th day of the month; salaries are being

given to each employee.

b. Mandatory Benefits

13th Month Pay

13th month pay is a form of monetary benefit equivalent to the monthly basic

compensation received by an employee, computed pro-rata according to the number of

months within a year that the employee has rendered service to the employer.

SSS Benefit

Dreamers Ice Cream shall pay the employer share to the SSS contribution, while

the share of the employees will be deducted from their monthly salary. (Eroles,et.al,2014)

PhilHealth

The Philippine Health Insurance Program was established to provide health

insurance coverage and ensure affordable, acceptable, available and accessible health

care services for all citizens of the Philippines. It shall serve as the means for the healthy

to help pay for the care of the sick and for those who can afford medical care to subsidize

those who cannot.

Pag-ibig Fund

It offers its members a housing programs, savings and multipurpose loan.

Membership to Pag-ibig fund is voluntary if monthly basic rate is less than P4, 000.00.
 Figure 25

Uniform lay-out

Front design Back design

Figure 25 shows the complete uniform to be used by the employees during the

operating hours.
VIII. OPERATING HOURS

Table 29

Operating Hours

Days Designation Time

Monday to Saturday Manager 1/Staff 1 8:00 am to 5:00 pm

Monday to Saturday Manager 2 /Staff 2 12:00 nn to 9:00 pm

Table 29 shows the “Dreamer’s Ice Cream” operating hours and days. The

business will be open from 8:00 am in the morning until 9:00 pm from Monday to

Saturday.
 PROJECTED SCHEDULE GANTT CHART

Figure 26

Gantt chart

MA
OCT NOV DEC JAN FEB
R
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
ACTIVITIES
Putting up
Capital
Processing of
Legal
Requirements
Leasehold
Improvement
Purchasing of
Equipment and
Furniture
Purchasing of
Utensils and
Supplies
Hiring of
Employees

Advertising
Start of business
operation

Figure 26 shows the projected time schedule of the business. Putting up with

capital will be collected within 3weeks of October. Five (5) weeks will be schedule in

processing the legal requirements which will from last week of October and whole month

of November. Leasehold improvement will start at the 2nd week of November. Purchasing

of Equipment and Furniture will be conducted on the 2nd week of December until 1st

week of January. 2nd and 3rd week of January will be the purchasing of utensils and
supplies. Hiring of employees will be conducted on the last 4th week of January to 2nd

week of February. Advertising will be implemented on the 3rd and 4th week of February

and opening of the business will on 1st week of March.

 SUMMARY OF MANAGEMENT ASPECT

Dreamer’s Ice Cream is a business engage in selling homemade ice cream. The

form of ownership is General Partnership, and the seven (7) partners contribute P107,

142.86 each with the total of P750, 000.00 as initial capital. The pre operating procedures

shows the different requirements in putting a business such as planning, business

registration, securing permits needed in operate legally. The organizational chart is being

shown with the corresponding position of employee in Dreamer’s Ice Cream. The hiring

procedures indicate the type of employees needed to be hired according to the

qualification assign by the business. The duties and responsibilities that the company

requires to have is also discussed here. The standard operating schedule is also

implemented to make sure that all employees will comply. The employees will get a

minimum age of P481.00 and P600.00 for the managers and other employment benefits

provided by the law. The operating hours will be from Monday to Saturday, 8:00 am to

9:00 pm.