Manpower Resources Union Membership Money, Finance and Funds

Chapter 11
 Manpower Resources
 Union Membership
 Money, Finance and
Funds
Engineering Management Jumar Anthony V. Devera

July 27, 2010 BS Computer Engineering IV-4
Manpower Resource as an Economic, Productive
Units and Workers
Manpower Resource Defined:
– Manpower resource constitute a major element of

any industrial enterprise. A company operates,
grow and prosper through creative, dynamic
leadership cooperatively apply to capable
employees – from president down to the lowest
sweeper.

Manpower Planning
– The process of analyzing an organizational

human resource needs under changing conditions
and developing the activities necessary to satisfy
the needs.
– Also known as HUMAN RESOURCE PLANNING

Elements of Manpower Resource Planning
 Organizational Planning
 Selection and Placement
 Training
 Development
 Motivation of Employees

Aspects of Manpower Planning
 Systematic Forecasting of Manpower

– Needs on the basis of business conditions and forecast.
 Performance Management Analyzing
– Monitor and improve the performance of each employee
and of the organization as a whole.
 Career Management Determining
– Plan and monitor the career aspirations of each individuals
in the organization and developing them for improved
productivity.
 Management Development
– Assess and determine the developmental needs of
managers for future success.

Advantages of Proper Manpower Planning
– A company can be better assisted in attaining its goal and

objectives
– Helps the company to determine its manpower needs and

provides a method of meeting them
– An effective means of planning the development of growth

and development of the employees
– Assist in placing employees properly in jobs where they can

maximize the use of their skills and potentials
– Assist the company to attract and retained better qualified

employees

Five Steps to Manpower Planning
1. Determine the workload inputs based on the

corporate goals and objectives, and analyze their
IMPACT on each department’s operational
responsibility.
Factors to consider in Determining WORKLOAD
– Business Development and Assumptions
– Corporate Planning
– Economic Forecast
– Changes in Plans and Products
– New Product Lines
– Merge and Consolidation
2. Studying the jobs in the company and writing

the job description and job specification
3. Forecasting human resources and its needs.

Determination of the number and skill of people
required for the work.

4. Inventory of manpower an analysis of the present

manpower compliment of the company to determine
whether it has enough, less or more personnel.( Both
quantitatively and qualitatively).
5. Improvement plans determination of the appropriate steps

to implement the human resource plan in order to ensure
that the company has the right number and right quality of
people, properly assigned to jobs for which they are most
useful.

Union Organization
Union Organization defined:
– An employees organization formed to pool their

strength together to promote, protect and
improved their social and economic interest
through collective action.
– To bargain collectively with the employer in which

in order to improve the employment conditions
and status of its members.

Union Organization
Aims of a Union Organization:
– To conclude an agreement with the employer,

outlining the rights and duties of management and
the rights and duties of the workers.
– Its chief interest lies in the demand for improve

wages, working conditions, hours of work, job
security and other benefits.

Union Objectives
 Economic Objectives
– Concerned with the primary and secondary needs
of the worker.
 Political Objectives
– Focused on promoting power and prestige.

Union Objectives
Ways to Promote Political Objectives
I. Lobbying activities designed to secure the

passage of favourable legislation and opposing
unfavourable proposed law.
II. Supporting and campaigning for candidates for

political offices who are friendly to labor.

Types of Union
 Industrial Union
– Includes all workers in its rank in a particular firm
or plant regardless of occupation.
 Craft Union
– Membership is restricted to persons working in
the same trade or a related occupation in the firm.

The Work of Union
– Negotiating a contract of employment relationship

with management.
– Handling the complaints and grievances of
employees.
– Enlisting, organizing and indoctrinating new
embers.
– Financing the work of the union.
– Handling legal cases and pertinent problems of
the union or of its members.
– Conducting research work on union problems and
projects.
The Work of Union
– Conducting union training and education among

the officers and members.
– Conducting political aim and action.
– Establishing welfare activities for the members.
– Establishing linkages with other organization.
– Engaging in livelihood program for their members.
– Involvement in community activities.

Rights and Conditions of Membership
– No arbitrary or excessive initiation and membership fees.

– Right to full and detail financial reports.
– Right to elect an officer.
– Not to knowingly admit as member or continue in
membership any individuals who belongs to a subversive
organization or who is engaged directly or indirectly in
any subversive activity.
– The workers desire to render social services to their
fellow workers.
– Management failure to give the employees what are due
to them by law or by company’s voluntary grants.

Reasons Why Employees Join a Union
– Employers’ unfair and arbitrary treatment of

employees.
– Discontent with earnings because of inequality of
pay or low wages.
– Workers realization that collective action is more
effective that divided action.
– The labor code protects the rights of workers.
– For better economic and working conditions.
– Managements failure to give proper attention to
the worker’s individual and group needs.
– The feeling of security in employment and in
economic advantages through collective action.

Money
Money Defined:
– Anything used by society as a medium of

exchange, and is widely acceptable for the
payment of goods and services without
questioning the integrity of the person offering it.
– Anything of value that is authorized by law to be

generally accepted as a medium of exchange and
as a standard of value within a given political
territory and a given time.
Functions of Money
1. As a medium of exchange.
 enables goods and services to be transferred from one
person to another.
2. As a standard to measure the value of goods and
services.
 used as a yardstick in pricing of things
3. As a store of value.
 money can be kept for future use.
Two ways of keeping money for future use:
1. By saving
2. By investing
4. As a means of deferred payments.
 enables us to buy goods at credit.

Kinds of Money
1. Commodity Money
• has a value of its own.
2. Credit Money
• credit instrument that is widely acceptable in payment for goods
and services and in the settlement of existing debts and
obligation.
Types of Credit Money
 Representative Paper Money
- backed up by 100% gold and silver reserve.
 Fiduciary Paper Money
- backed up by a partial gold or silver reserve.
 Bank Notes
- refers to the promise of a bank to pay the bearer or holder
of the note a sum certain in standard money upon
demand or upon representation of the note.

Kinds of Money
3. Flat Money
 kind of paper money issued by a government edict or
decree
 an inconvertible paper money because the government
holds no reserve to back it up.
4. Legal Tender Money
 kind of money that circulates because of its legal
tender power.

Finance
Finance Defined:
– the study of financial institutions and financial

markets and how they operate within the financial
system. (macro level)
– the study of financial planning, asset

management and fund raising for businesses and
financial institution. ( micro level)
– The art and science of managing money.

Financial System
Financial System Defined:
– composed of the myriad markets and institutions

through which funds flow between lenders and
borrowers.

Elements of Financial System
 Financial Market
– provide the mechanism for allocating financial resources
or funds from savers to borrowers.
– organized in which the suppliers and competitors for
various types of funds can transact.
Types of Financial Markets
1. Money Market
- refers to all institutions and procedure that
provide for transactions in short-term debt instruments that
are generally issued by borrowers with good credit rating.
2. Capital Market
- refers to all institutions and procedures that
provide for transactions in long-term financial instruction

 Financial Institution
– firms such as banks and credit unions, that engage in
financial activities to aid the flow of funds from savers to
borrowers.
Types of Financial Institution/Intermediaries
1. Banks
- includes all financial institutions engaged in the
lending of funds obtained from the public primarily
through receipts of deposits of any kinds.
2. Non-Banks
- financial institutions other than banks whose principal
functions includes lending, investing or placement
funds or evidence of indebtedness or equity
deposited with or otherwise acquired by them, either
for their own account or for the account of others.

 Financial Assets
– products of the financial system.
 Government Agencies
– implement rules and regulation within the financial system

Financial Statements
Financial Statements Defined:
– structured representation of the financial position,

financial performance and transactions
undertaken by an enterprise.
– shows the results of the management

stewardship of the resources entrusted to it
– the end product of accounting process

Components of Financial Statements
 Statement of Financial Position (Balance Sheet)

– a list of the assets, liabilities and owner’s equity
as of a specific date.
 Statement of Profit and Loss (Income Statement)
– a summary of the revenues and expenses of a
business entity for a specific period of time.
 Statement of Cash Flow
– a summary of cash receipts and cash payments
for a specific period of time.
Components of Financial Statements
FORMULAS:
 Statement of Financial Position (Balance Sheet)
Assets = Equities or Assets = Liabilities + Owner’s Equity
 Statement of Profit and Loss (Income Statement)
Net Income = Service Revenue – Operating Expenses
 Statement of Cash Flow
Cash Balance = cash flow from Operating Activities +
cash flow from Investing Activities +
cash flow from Financing Activities

Statement of Financial Position (Balance Sheet)

Statement of Profit and Loss (Income Statement)

Statement of Cash Flow

Funds
Funds Defined:
– sum of money or resources needed by an

enterprise to cover its operation – to maintain the
plant, to purchase materials and supplies, to pay
salary and wages, to cover storage, transportation
and shipping services, to advertise and others.

Needs for Funds
 Financing Daily Operations

– wages and salaries - power and light
– rent - marketing expenses
– taxes - administrative expenses
 Financing the Form’s Credit Services
– credit to customers
 Financing the Purchase of Inventory
– maintenance of adequate inventory of supply needed for a
project.
 Financing the Purchase of Major Assets
– purchasing major such as lands, plant, equipments and
others that can be used in the future or on expansion of the
firm.
Sources of Funds
 Cash Sales
– derived when the firm sells its products or services.
 Collection of Receivables
– credits extend to customers
 Loans and Credit
– borrowing or crediting resources or funds from a financial market or
intermediaries.
 Sale of Assets
– comes from the income due to the sale of company’s asset.
 Ownership Distribution
– the owner provides more money for the firm.
 Advances from Customers

– the customers are required to pay in advance on orders made.

Sources of Funds
 Short-Term Sources of Funds

– those with repayment of less than a year.
– collaterals are sometimes required.
 Advantages  Disadvantages
– easier to obtain. – mature more frequent
– often less costly. – the debts may be more
– offers flexibility to the costly than long-term
borrower. debts

Short-Term Sources of Funds

Providers of Short-Term Sources of Funds
 Trade Creditors
– refers to the suppliers extending credit to a buyer for use
in manufacturing processing or reselling for profit.
Instrument Used in Trade Credit
a. Open- Book Credit
– unsecured and permits the customer
b. A Promissory Note
– a note that the borrower will pay the lender with the
specified amount at a specific time.
c. Trade Acceptance
– a time draft drawn by the seller and accepted by the
purchaser as evidence that the goods shipped are
satisfactory and the price is due payable.

Providers of Short-Term Sources of Funds
 Commercial Banks
– grants two types of short-term loan: with collateral and
without collateral
 Commercial Paper House
– help business firms in borrowing funds from the money
market
 Finance Companies
– finance inventory and equipment in almost all types and
sizes of firms.
 Factors
– institutions that buy the account receivables of firms.
 Insurance Companies
– institutions that offers insurance as well as short-term loans
to a firm that needs a fund.

Long-Term Sources of Funds
 Long-Term Sources of Funds

– those with repayment of more than a year.
– collaterals are required.
Classification
1. Long-Term Debts
a. Term Loans
b. Bonds
2. Common Stock
3. Retained Earnings

Long-Term Debts
a. Term Loans
– a commercial or industrial loan from a commercial
bank commonly used for plant and equipment,
working capital, or debt repayment.
– have a maturity of 2 to 30 years.
Advantages
1. Funds can be generated more quickly.
2. Flexible.
3. The cost of insurance is low.

b. Bonds
– A certificate of indebtedness issued by a corporation to a
lender.
– A marketable security that the firm sells to raise funds.
– Ownership of bonds can be transferred and investors are
attracted to buy it.

Long-Term Debts
Types of Bonds
1. Debentures – no collateral requirements
2. Mortgage Bond – secured by real estate
3. Collateral Trust Bond – secured by stock and bonds
owned by issuing corporation
4. Guaranteed Bond – payment of interest or principal
5. Subordinated Debentures – with an interior claim over the
other debts
6. Convertible Bonds – convertible into shares of common
stock
7. Bond with Warrants – warrants are options which permits
the holder to buy stocks of issuing company at a stated
price
8. Income Bonds – pays interest only when earned.

Common Stock
– the basic ownership class of corporate stock.
– the last to be paid against the company’s assets

and profits, if the company earn, the stockholder
will receive a dividend, but if not the holders of the
common stock will not receive any dividend.
– Common stock does not have maturity and

repayment dates

Retained Earnings
– refer to “corporate earnings not paid out as

dividends”.
– earnings are due to reinvestment of the

stockholder of the corporation.
– the retained earnings can be used indefinitely.

References:
– Accounting by Warren Reeve Fess

– Principles of Financial Accounting by
Milagros B. Hernane, CPA
– Accounting for Partnership and
Corporation by Gloria J. Tolentino-Baysa,
CPA and Ma. Conception Y. Lupisan, CPA
– Bank Operations Theory and Practice by
Augustus F. Cezar, BSC,LLB
– New trends in High School Economics by
Rhodora Tolentino
The End!!!
Thank You Very Much!!!
Kamsahamnida !!!


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Chapter 11

Engineering Management Jumar Anthony V. Devera

Manpower Resource Defined:

– Manpower resource constitute a major element of

Engineering Management Jumar Anthony V. Devera

– The process of analyzing an organizational

– Also known as HUMAN RESOURCE PLANNING

Engineering Management Jumar Anthony V. Devera

Engineering Management Jumar Anthony V. Devera

 Systematic Forecasting of Manpower

Engineering Management Jumar Anthony V. Devera

– A company can be better assisted in attaining its goal and

– Helps the company to determine its manpower needs and

– An effective means of planning the development of growth

– Assist in placing employees properly in jobs where they can

– Assist the company to attract and retained better qualified

Engineering Management Jumar Anthony V. Devera

1. Determine the workload inputs based on the

2. Studying the jobs in the company and writing

3. Forecasting human resources and its needs.

Engineering Management Jumar Anthony V. Devera

4. Inventory of manpower an analysis of the present

5. Improvement plans determination of the appropriate steps

Engineering Management Jumar Anthony V. Devera

Union Organization defined:

– An employees organization formed to pool their

– To bargain collectively with the employer in which

Engineering Management Jumar Anthony V. Devera

Aims of a Union Organization:

– To conclude an agreement with the employer,

– Its chief interest lies in the demand for improve

Engineering Management Jumar Anthony V. Devera

Engineering Management Jumar Anthony V. Devera

Ways to Promote Political Objectives

I. Lobbying activities designed to secure the

II. Supporting and campaigning for candidates for

Engineering Management Jumar Anthony V. Devera

Engineering Management Jumar Anthony V. Devera

– Negotiating a contract of employment relationship

– Conducting union training and education among

Engineering Management Jumar Anthony V. Devera

– No arbitrary or excessive initiation and membership fees.

Engineering Management Jumar Anthony V. Devera

– Employers’ unfair and arbitrary treatment of

Engineering Management Jumar Anthony V. Devera

– Anything used by society as a medium of

– Anything of value that is authorized by law to be

Engineering Management Jumar Anthony V. Devera

Engineering Management Jumar Anthony V. Devera

Engineering Management Jumar Anthony V. Devera

– the study of financial institutions and financial

– the study of financial planning, asset

– The art and science of managing money.

Financial System Defined:

– composed of the myriad markets and institutions

Engineering Management Jumar Anthony V. Devera

Engineering Management Jumar Anthony V. Devera

Engineering Management Jumar Anthony V. Devera

Engineering Management Jumar Anthony V. Devera

Financial Statements Defined:

– structured representation of the financial position,

– shows the results of the management

– the end product of accounting process