MANAGEMENT ASPECT

This chapter tackles the organizational arrangement of Lumos Nyctophile. The

management aspect shows the company background, form of ownership, qualifications

of each job specified, the employees’ specific duties and responsibilities, and the

organization’s policy and internal controls. The management aspect mentioned above

are desired to be helpful in sustaining the company in the long run.

COMPANY BACKGROUND

Lumos Nyctophile is committed in creating and developing budget-friendly lamps

that provides convenience, comfort and relaxation to consumers. The company name

was derived from the Latin word “Lumen” which means light and from the ancient Greek

word “Nyktos” and “Philos” which means lover of the night. It is inspired by persons who

are afraid and alone in darkness.

VISION

Lumos Nyctophile envisions itself to be the leading innovator and manufacturer of

multifunctional lamp in the Philippines.

MISSION

Lumos Nyctophile aims to create high-quality standards multifunctional lamp while

providing great value to their customers. They are committed to continuously

strengthening their products to become one of the most competent in furniture and

fixture industry.
COMPANY LOGO

Company Logo

 LUMOS - means “Light”

 NYCTO - means “Night”

 PHILIA - means “Love”

PRODUCT LOGO

Product Logo

The figure above describes the logo of the company product consisting of the

product name and bulb moon inspired which depicts the purpose of our product is to

light up the dark of every people.

FORM OF OWNERSHIP

Lumos Nyctophile is a sole proprietorship that was owned by Mr. Julian Diaz and

start the business with P_________ as a capital. In a sole proprietorship, the owner

manages and controls all the business activities and bears all the risks in managing it.

COMPOSITION OF AN ORGANIZATION

The organization is composed of one (1) General Manager which is the owner of

the business, one (1) Administrative Manager, one (1) Accountant, one (1)

Technician/Supervisor, and thirty (30) Craftsmen/Assembler, one (1) Cashier and two
 (2) Security Guards, the first one scheduled shift is 8:00 AM - 8:00 PM and the other

one is scheduled at 8:00 PM – 8:00 AM.

ORGANIZATIONAL CHART

General Manager

Administrative
Manager

Accountant

Technician/ Supervisor

Craftsman/ Assembler

Security Guard Cashier

 The organizational chart of Lumos Nyctophile was designed to have a better

illustration of the relationships and chains of command within the organization. As

shown above, the General Manager is at the top because he is the owner of the

business; hence, he is the overall in charge of the daily business operations. After

General Manager, there is an Administrative Manager which is responsible for

supervising the employees and assessing their work performance. The company will

also hire an accountant to manage their financial obligations. Next one is the technician/

supervisor who is responsible for managing workflow and overseeing the technical

aspect of the product. There is also a craftsman/ assembler in the company that will

perform skilled carved work on the bamboo. The company has a cashier that accepts

payments from customers, and lastly, the company will hire security guards, they are

responsible for the safety of the customers and the premises. It is highly expected that

the employees in the company has a good relationship and communication with each

other.
MANPOWER

Job Title: General Manager

Job Description:

 Overseeing daily business operations

 Training low-level managers

 Take full profit & loss responsibility

 Develop and implement business plan for profitability

 Hiring employees

Job Title: Administrative Manager

Job Description:

 Supervising day-to-day operations of the staff members

 Assess staff performance and provide coaching and guidance to ensure

maximum efficiency

 Ensure operations adhere to policies and regulations

 Overseeing maintenance activities

 Job Specification:

 The candidate must have a Bachelor’s degree in Business Administration,

Facility Management or any related field

 Must have at least 3 years’ experience as an Administrative Manager

 Exceptional leadership and time, task, and resource management skills

 Knowledge of clerical and administrative procedures

Starting salary – P25,000.00

Job Title: Accountant

Job Description:

 Handle monthly, quarterly and annual closings

 Manage balance sheets and profit/loss statements

 Filing and remitting taxes and other financial obligations

 Prepare budget forecasts

 Reconciling the company’s bank statements and bookkeeping ledgers

Job Specification:

 The candidate must have a bachelor’s degree in Accounting, Finance or

relevant degree

 Additional certification (CPA or CMA) is a plus

 Must have a working experience as an Accountant

  Knowledge and competency in accounting principles

 Advanced MS Excel skills and other accounting software

Starting salary - P16,000.00

Job Title: Technician/ Supervisor

Job Description:

 Assessing and improving electrical systems, such as adding electronic

devices (speaker)

 Reading blueprints to learn where circuits, outlets and other electrical

components are found or will be positioned

 Repairing broken electrical lights and making suggestions in improving the

previous standards

 Overseeing the technical aspect of the product

 Ensures that all parts of the product are properly working and the product

itself meets the quality standards of the company

 Identify any defective items and handle according to established procedures

Job Specification:

 The candidate must have high school diploma or equivalent

 Must have a 2-year Electrical, Technical or related degree

  At least 3 years’ experience as an Electrical Technician

 Extensive knowledge of electrical systems, wiring and all necessary

equipment

 Excellent communication skills

 Proactive organizational skills

Starting salary- P18, 000.00

Job Title: Craftsman/Assembler

Job Description:

 Performs skilled carved work on the bamboo

 Effectively and safely operates variety of tools and equipment in crafting

 Assembled the parts of the lamp and package it in a plastic

Job Specification:

 The candidate must have a high school diploma or equivalent

 Must completed a certificate program or an associate degree from a

vocational school or community college

 Must have a manufacturing experience for at least 3 years

Starting salary- P16, 000.00

Job Title: Cashier

Job Description:

 Accepts payments, ensuring all prices and quantities are accurate and
providing receipt to customer
 Responsible for counting the contents of cash register drawer after each shift

 Welcoming customers, answering their questions, helping them locate items,

and providing advice and recommendations

 Handle merchandise returns and exchanges

Job Specification:

 The candidate must have a high school diploma or equivalent

 At least 1-year experience as a cashier

 Effective communication and customer service skills

 Familiarity with electronic equipment, like cash register

Starting salary: P12, 000.00

Job Title: Security Guard

Job Description:

 Patrol company’s premises to prevent and detect signs of intrusion and

ensure security of doors and windows

  Monitor and authorize entrance and departure of employees, visitors, and

other persons to guard against theft and maintain security of premises.

 Warn persons of rule infractions or violations

 Inspect and adjust security systems, equipment, and machinery to ensure

operational use and to detect evidence of tampering

 Write reports of daily activities and irregularities, such as equipment or

property damage, theft, presence of unauthorized persons, or unusual

occurrences

Job Specification:

 The candidate must have a high school diploma or equivalent

 At least 3 years’ experience as a Security Guard or another similar role

 Candidate must have a certification, a Security Guard license or security

training

 Candidate should also have demonstrable experience working with

security systems and know how to write reports

Starting salary: P14, 000.00

EMPLOYEE BENEFITS

 Each employee will have 13th month pay.

 If the employee works beyond 8 hours, he/she is entitled to receive an additional

compensation equivalent to his regular wage plus at least thirty percent (30%)

thereof.

 If an employee works on a regular holiday, he/ she will receive at least twice

o (200%) of his/her regular wage rate.

 If an employee works on a Special Non-Working Holiday, the employee shall

receive

o 100% of his/her regular salary plus 30% of the daily rate.

 All employees are entitled to ten days sick leave and 5-day vacation leave per

year.

COMPANY POLICIES

Attendance

 The store will open at 8:00 AM – 7:00 PM from Monday to Saturday.

 Employees should arrive at least 15 minutes early before the time.

 Employees should notify the Administrative Manager ahead of time the

reason of their absence.

  If the employee has been absent for 6-consecutive days without further

notice, the employee will be considered absence without leave (AWOL).

 Employees who want to take a vacation leave should file it one week prior

to the effective date.

 Sick leaves must have a medical proof or certificate.

Dress Code and Personal Hygiene

INTERNAL CONTROLS

o The company will install a Closed-circuit television (CCTV) camera and will have

fire extinguisher on their premises

o Company will conduct background check on potential employees

o The company will set-up an inventory control system

o The company will hire two (2) security guards, the first one scheduled shift is

8:00 AM - 8:00 PM and the other one is scheduled at 8:00 PM – 8:00 AM

o A cash register drawer will be used to secure the cash after collecting cash

payments from customers

o All business payments and receipts will be recorded on the general ledger
GANTT CHART

ACTIVITIES AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

Planning

Putting up
equity

Find
Business
location

Building
Construction

Register the
business

Hire
employees

Contact
Suppliers

Start
Advertiseme
nt

Start
Business
Normal
Operation
 The Gantt Chart shows the company preparation from August which is the

planning stage up to December which is the target start of the business operations. On

the same month they put up the equity, find the business location and also the building

construction started which extended until September. While the building construction is

on-going, they work with the registration of the business. On the month of October, they

started hiring qualified employees and contacting suppliers that can provide raw

materials at a lowest price but with the best quality which lasted until November. Before

the hiring and contacting of suppliers ended, they started to advertise the business until

December which later on the business also started.

BUSINESS LOCATION

Actual Store Location

 It was located Sta. Cruz, Manila. Both sale and production will take place in this

commercial space since the production won’t accumulate huge area.

Vicinity Map of Store Location

It shows the vicinity map where the store is located. The exact address of Lumos

Nyctophile is V. Fugoso St, Brgy 311, District 3, Sta. Cruz, Manila. The owner chose

this area because it is within the vicinity of University Belt and Manila area, because

their target market is students, young professionals.

LEGAL ASPECT

This chapter tackles the organization’s legal requirements that are needed to

comply in operating the business. This includes the process in registering the business

and employees’ salary deductions.

REQUIREMENTS AND PROCEDURE IN REGISTERING THE BUSINESS

1. Register a business name at Department of Trade and Industry

2. Registration with barangay

A. Submit completed application form together with the following:

a. Certificate of Business Registration from DTI

b. Two (2) valid IDs

c. Proof of Address such as Contract of Lease (if rented) or Certificate of

Land Title (if owned)

3. Register the business in the Mayor’s Office

A. Submit completed application form together with the following:

a. Certificate of Business Registration from DTI

b. Barangay Clearance Certificate

c. Two (2) valid IDs

d. Proof of Address such as Contract of Lease (if rented) or Certificate of

Land Title (if owned)

 4. Register the business with the Bureau of Internal Revenue

A. Go to the Regional District Office (RDO) where the business is located

B. Fill-up the BIR Form 1901 – Application for Registration (for sole Proprietor)

C. Submit completed registration form together with the following:

a. Certificate of Business Registration from DTI

b. Barangay Clearance Certificate

a. Valid IDs, if applicable

c. Proof of Address such as Contract of Lease (if rented) or Certificate of

Land Title (if owned)

d. Mayor’s Business Permit

D. Pay the Registration Form (BIR 1605)

E. Register your book of accounts and invoices

F. Claim your Certificate of Registration (BIR Form 2303)

5. Registration with Social Security System

Sole proprietor should accomplish SSS Forms R-1 (Employer SSS Registration)

and R-1A (Employer Report).

6. Registration with Home Development Mutual Fund

According to Republic Act 7835, it is a mandatory requirement for employers to

contribute, on behalf of their employees, to the Pag-IBIG Fund or Home Development

Mutual Fund (HDMF). For new employees, they can apply membership by undergoing

the HDMF Online Membership Registration. On the part of the employers, they can
submit the list of their new employees by filling up the Member’s Contribution

Remittance Form (MCRF) and mark as NH (Newly Hire) when filing monthly HDMF

contribution. It is to be noted that the employee must be a member of Social Security

System before he/she can register to Pag-IBIG Fund.

7. Registration with Philippine Health Insurance Corporation

According to Republic Act 7875 otherwise known as the National Health

Insurance Act of 1995, all government and private sector employers must register

with PhilHealth to enable them to provide social health insurance coverage to their

employees. The following are the steps to register with PhilHealth:

A. Submit the following at any PhilHealth Office:

a. Employer Data Record or ER1 Form (in duplicate). The form may be

downloaded at PhilHealth Website.

b. Business permit/license to operate and SEC Registration is required

for partnership.

B. After processing, PhilHealth will issue the following:

a. PhilHealth Employer Number (PEN) and the Certificate of Registration.

b. PhilHealth Identification Number (PIN) and Member Data Record (MDR)

of

c. registered employees

C. Display the Certificate of Registration in a conspicuous area of your office as a

requirement.
SALARY DEDUCTIONS

Salary deductions are mandatory contributions collected by the government

based on an employee’s basic salary.

SOCIAL SECURITY SYSTEM

The amount deducted every month for the SSS contribution is 12% of an

employee’s monthly salary credit.

PHILHEALTH

The PhilHealth premium contribution rate is 3% of the monthly basic salary,

shared equally by employers and employees.

PAG-IBIG

The maximum PAG-IBIG contribution is 2% per month for members earning P1,

500 and above per month.

REFERENCES:

(MPM Consulting Services Inc., 2020).” How to Register a Sole Proprietor Business in

the Philippines?”. Retrieved from https://mpm.ph/register-a-sole-proprietor-business/

(Pingboard Inc., 2020).” What Is an Organizational Chart and Why Is It Important?”.

Retrieved from https://pingboard.com/org-charts

(Philpad, 2020). “New SSS Contribution Table 2020”. Retrieved from

https://philpad.com/new-sss-contribution-table/

(governmentph, 2020). “New PhilHealth Contribution Table for 2020”. Retrieved from

https://governmentph.com/philhealth-contribution-2020/

(Philpad, 2020). “New Pagibig Contribution Table 2020”. Retrieved from

https://philpad.com/pagibig-contribution-table/