MODULE VII – MAMANGEMENT ASPECT

Format contents for Management Analysis

1. Company name, form of organization and organization chart
2. Company logo and its meaning
3. Company Vision and Mission (Consider the SMART – specific,
measurable, attainable, realistic, time-bounded)
4. List of manpower required for the business to smoothly operate
(with their suggested salaries, minimum qualifications)
5. Project schedule
6. Other Management objectives like fringe benefits (membership
with SSS, Pag-Ibig & PhilHealth) and mandatory benefits (13 th month pay, SL/VL [5-day
incentive leave] – Incentive Leave, Sick/Maternity/Paternal Leave) for employees.
Sample Org. Chart

Gen. Mgr. (1)

Oper. Head (1) Acctg. Head (1) Sales Head (1)

Worker (4) Maintenance (3)

Position # of Personnel Monthly Salary Annual Salary

Gen. Mgr. 1 40,000.00 480,000.00
Prod’n. Head 1 18,000.00 Sample
Sales Head 1 16,000.00 Sample

Acctg. Head 1 16,000.00 Sample

Worker 4 12,000.00 Sample

Maintenance 3 12,000.00 Sample

Total 11
Note: The table shall be made available in Appendix/Index for verification.

Forms of business organization

Business organization is an entity formed for the purpose of carrying on commercial enterprise.
Such an organization is predicated on systems of law governing contract and
exchange, property rights, and incorporation.
MODULE OBJECTIVES:

After successfully completing the module, you should be able to:

1. Define what are the forms of business

2. Define Stakeholders Management
3. Define Manpower requirement, recruitment, and training

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4. Define Marketing Program

Company Name
The chosen company name for the proposed business shall attract the potential customers. Just
like the San Miguel Corporation, and in my opinion, this corporation has chosen its name
because they, at the beginning, is producing beverage with spirited contents like San Miguel
Beer. Since San Miguel is a profound angel, which is literally being acknowledged as a spirited
entity in Christian Religion, the name itself may infer to the product itself -- which is a beverage
that contains alcoholic spirit. Also, the logo proposes the picture of Angel Michael (Miguel in
Spanish) beating the devil. This perhaps an indication that drinking their product can temporarily
administer the drinkers’ problem, that is evil in respect.
Company Vision and Mission
It is important for all companies to declare their mission and vision. This behavior will be their
guide on how to enhance energy to do business for a specific period.
Manpower requirements (Organizational Chart)

Sample:
CEO 1, Dept Head 3, Worker 3 each = 22 personnel
This pertains to the total manpower required to make the business smoothly running. Just as in
any organization, it must have a person directly responsible for overall seer like a president or a
general manager. Also, products and services may not be possible if there are no personnel
who will perform to produce results. Likewise, support group of personnel are needed for
accounting, human resource/administration and others. For purposes of study, proponents are
required to verify salaries and benefits of all personnel in the organization versus the existing
professional situation. Salaries shall be comparable to
the present hiring rates per position.
Project Schedule
A project schedule herein referred is the timetable of
the proponents to complete the study prior to the

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actual conduct of the business. Predominantly, the best possible strategy to illustrate this
section is by the aid of a Gantt chart. Other useful methodologies are also welcome.
What are the forms of business?

a. Sole Proprietorship

A sole proprietorship is a business owned by only one person. It

is easy to set-up and is the least costly among all forms of
ownership. The owner faces unlimited liability; meaning, the
creditors of the business may go after the personal assets of the
owner if the business cannot pay them.

The sole proprietorship form is usually adopted by small business entities.

A sole proprietorship is the simplest type of business organization that may be established by a
person, called the sole proprietor. Unlike a partnership or corporation, which is a business
organization that has a separate existence from the partners in a partnership or stockholders in
a corporation, the sole proprietorship does not have a separate existence from the business
owner.

In a sole proprietorship, the business is an extension of the business owner. Thus, the assets
and liabilities of the sole proprietorship are considered the assets and liabilities of the business
owner.

b. Partnership
A partnership is a business owned by two or more persons who
contribute resources into the entity. The partners divide the profits
of the business among themselves.
In general partnerships, all partners have unlimited liability.
In limited partnerships, creditors cannot go after the personal
assets of the limited partners.
A partnership is a business organization whereby two or more persons agree to contribute
money, property, or industry to a common fund, with the intention of dividing the profits among
themselves. Two or more persons may also form a partnership for the exercise of a profession.
The partnership has an existence separate from that of each of the partners.
Unlike a corporation, a partnership does not have shares of stock, which are the basis for the
distribution of the profits (i.e. dividends) among the stockholders. Instead, in a partnership, the
losses and profits are distributed in accordance with the agreement of the partners. If only the
share of each partner in the profits has been agreed upon, the share of each in the losses shall
be in the same proportion. In the absence of an agreement, the share of each partner in the

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profits and losses shall be in proportion to what he has contributed to the partnership, but the
industrial partner shall not be liable for the losses.
As for the profits, the industrial partner shall receive such profits as may be just and equitable
under the circumstances. If the industrial partner contributed capital, he shall also receive a
share in the profits in proportion to his capital.
c. Corporation

A corporation is a business organization that has a separate legal

personality from its owners. Ownership in a stock corporation is
represented by shares of stock.
The owners (stockholders) enjoy limited liability but have limited
involvement in the company's operations. The board of directors,
an elected group from the stockholders, controls the activities of
the corporation.
A corporation is “an artificial being created by operation of law,
having the right of succession and the powers, attributes and properties expressly authorized by
law or incident to its existence.”
The corporation has an existence separate from that of its stockholders.
Corporations may be classified as either stock or non-stock corporations. Stock corporations
have capital stock divided into shares of stock, which may be issued to the stockholders. Stock
corporations are allowed to distribute dividends to the stockholders on the basis of the number
of shares of stock owned by them. Non-stock corporations do not have capital stock divided into
shares of stock and are not allowed to distribute dividends to the members.

A stock corporation is the appropriate type of corporation for the purpose of operating a
business.

d. Limited Liability Company

Limited liability companies (LLCs) in the USA, are hybrid

forms of business that have characteristics of both a
corporation and a partnership. An LLC is not incorporated;
hence, it is not considered a corporation. But, the owners
enjoy limited liability like in a corporation. An LLC may elect
to be taxed as a sole proprietorship, a partnership, or a
corporation.

e. Cooperative

A cooperative is a business organization owned by a group of

individuals and is operated for their mutual benefit. The persons
making up the group are called members. Cooperatives may be
incorporated or unincorporated. Some examples of cooperatives

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are: water and electricity (utility) cooperatives, cooperative banking, credit unions, and housing
cooperatives.

f. Corporation Sole
It is a registered business entity, similar to corporation in capacity, but owned and managed only
by an individual. Relatively, this is common in the Philippines like that of Shalom, Iglesia Ni
Cristo (INC) and other religious groups and sects. For purposes of this course, it is not
advisable to establish this form of organization.
Stakeholders Management
A stakeholder is a party that has an interest in a company and
can either affect or be affected by the business. The primary
stakeholders in a typical corporation are its investors,
employees, customers, and suppliers.
Management of stakeholders is critical to the success of
projects. Stakeholder influence is now felt more keenly in many
areas of corporate and public life. On a single construction
project it is easy to identify 50 significant stakeholders groups,
this increases the complexity of the management task and the
level of risk associated with the project. If project benefit and
certainty are to be maximized it is critical that project managers,
manage beyond the traditional confines of the scope of works.

Background and General Principles

Stakeholders are those who have a stake or an interest in a project or strategy undertaken by a
company or an organisation, they will be affected in some way be the project and so have an
interest in influencing it. They may benefit from the project and so will be supportive and positive
about it; conversely, the project may damage their interests or they may perceive it will have a
negative outcome for them so they will seek to stop it or, at the very least, project it in a bad
light.

In construction projects stakeholders can include:

 Users of a building
 Funders
 Neighbors
 Regulatory bodies
 General public

Internal Stakeholders

There are broadly two groups of project stakeholders, those internal and those external to the
client organization. The type most usually recognized are the external stakeholders, however
the management of internal stakeholders is often more problematic. In construction projects it is
often difficult to identify who actually is the client, there may be a nominated single point of
contact but this person is not really the ‘client’ just the representative of the client organization.

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Very often it is the case that this person has the responsibility of juggling a whole range of
different requirements within the client organization and as a result they will be subject to many
influences which may well affect the project as change. Within the client organization there will
be a whole range of individuals with very different ‘stakes’ in the project, unless the nominated
client representative takes a very strong line they will succeed in influencing the course of the
project.

Internal stakeholders could be anyone within the organization. Most commonly, they are the
eventual users of the project, but they could also be the heads of marketing, IT or human
resources, other employees, trade unions and so on. All have a stake in the project and all can
affect it, directly or by influence.

External Stakeholders

External stakeholders are the individuals or organizations who are not part of the client
organization but nevertheless have an interest in the project. They are perhaps the stakeholder
groups most readily recognized. For publicly funded projects the number of stakeholders who
can be identified is high. These generally consist of:

Funders, whether this is a government department, grant provider or private sector partner.

Users, whether these are passengers for a transport project or visitors for a museum.

Regulatory authorities: Most commonly the planning authorities, but also specialist regulatory
authorities for example those involved in rail projects.

Those affected, who may be neighbors or those working or living nearby.

The press and media are another significant group who can greatly influence perception of the
project and its perceived, and in some cases actual, success.

Active Management of Stakeholders

The basic requirement is to manage the project so that positive stakeholders are in the bottom
right hand corner and negative stakeholders are out of that corner. You need to remember that
the matrix is dynamic, changes of individual within stakeholder organizations or changes to your
project will be reflected in the matrix. The following are some ideas for strategies that you or the
client may wish to adopt to deal with the various groups.

High Power, High Interest

If they are positive provide them with information to maintain their support, look after them well
they are important, to let them know that. Don't ignore them just because they are not causing
you any problems at the moment. Involve them in your project, make them part of your project
steering group (if they are not already), involve them in decisions, use them to lobby other
groups and make sure they voice their support. Those with high power and interest, who are
negative are a big problem and you need to put effort into dealing with them. Use other positive
stakeholders to lobby them and hopefully change their views, attempt to counter any negative
influence they may have on other groups, reduce their power if the means exists to do this.
They may also respond to bargaining. Find out what is important to them, help them out, and
buy their favor. Some also respond to information and interest.

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Management strategies

Positive Negative

Provide information to maintain their Attempt to build their confidence in you and in the
support team.

Consult with them, involve them and Find out what is important to them, if you can help
seek to build their confidence in the them out or minimise negative impact on them they
project and the team may be more helpful.

Consult with them prior to taking Counter any negative influence they may have on
project decisions others.

Attempt to develop their support and change their view

Nurture them, look after them, they
by ensuring they fully understand the project and the
are critically important to you and to
benefits it will deliver. Their resistance maybe due to
the project
lack of information or understanding.

Encourage them to act as advocates Demonstrate that you are doing your best to limit
for the project adverse effects on them.

Meet with them regularly

High Power, Low interest

The high power, low interest group are the unexploded bombs – their interest is low, at the
moment. However if the project alters or the individuals change their interest may suddenly
increase and they will use their power to influence the project.

Management strategies

Maintain a careful watching brief, make sure that changes to the project or changes within the
stakeholder organization do not suddenly increase the level of negative interest.

Find out what is important to these groups and make sure that the project does not adversely
affect this. If the project is likely to have a positive effect for them make sure they are aware.

Beware of other negative stakeholders passing information to this group to encourage them to
oppose the project.

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High Interest, Low Power

If they are positive they are strong allies – treat them well, provide them with information, involve
them, use them to lobby other groups. If they are negative, they will probably deluge you with e-
mails and phone calls, you need to ensure that you don't spend too much time on them.

Management strategies

Positive Negative

Maintain their enthusiasm and interest You may need to get the project sponsor or client
in the project; they are good allies to representative to take a firm line with them they can
have. use a lot of time and resource.

Provide them with information, invite This is a group that you will probably know all too well
them to presentations, involve them as because of their high level of interest they will
much as resources allow. This can be probably deluge you (or your client) with e-mails and
done fairly cheaply through a project other correspondence. You need to be sure that you
website, newsletter or open do not spend too much time on them, remember their
presentations. power is low.

Seek their input and opinion if you can,

they will be flattered by this, but ensure
that you do not get too many opinions.

Low Power, Low Interest

Make sure you don't spend too much time on them but if they are supportive provide them with
information and be nice to them, their position or view may change in the future
Manpower requirement, recruitment, and training
Manpower requirement calculation is a vital part of all industry in competitive worlds. This will
help invest capital wisely. See formula below:

nx
Manpower requirement=
w [ ]
s
n - Demand per Day (output needed per day)
t - Capacity (Man minutes)
w - Working time (minutes)
s - Number of shifts
At 85% efficiency on Manpower

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 Example:
A customer wants a product P at a rate of 5000 units per day. This product P has 3
operations A, B and C which requires man-minutes 5, 8 and 6 respectively. The company
works for 2 shifts per day and working time per employee of 420 minutes. Normal efficiency
of the operations of the company is 85%.
Solution:
Given: Demand per day (n) = 5000
Man-minutes per product = 5 + 8 + 6 = 19 minutes
Working time per employee = 420 minutes
Number of shifts per day = 2
Using the Formula:
Manpower requirement = ((500*19)/420)/2 = 113.09
Manpower required per shift = 113.09/ 0.85 = 134
Therefore, the company needs 134 people per shift to satisfy the customer demand or a
total of 268 manpower per day.

Recruitment is defined as "a process to discover the

sources of manpower to meet the requirements of the
staffing schedule and to employ effective measures for
attracting that manpower in adequate numbers to facilitate
effective selection of an efficient workforce."
The objectives of recruitment are:
a. To attract people with multi-dimensional skills and experiences that suit the present and
future organizational strategies,
b. To induct outsiders with a new perspective
c. To infuse fresh blood at all levels of the organization,
d. To develop an organizational culture that attracts competent people to the company
e. To search or head hunt/head pouch people whose skills fit the company's values,
f. To devise methodologies for assessing psychological traits,
g. To seek out non-conventional development grounds of talent,
h. To search for talent globally and not just within the company,
i. To design entry pay that computes on quality but not on quantum, anticipate and find
people for positions that do not exist yet.

The recruitment strategies formulated by the companies include:

a. In sourcing or outsourcing: Companies recruit the candidates, employ them, train and
develop them and utilize the human resources of these candidates. This strategy is called 'in-
sourcing'. Companies formulate and implement this strategy when the company strategy is
for the stable growth. Some manufacturing and service companies, depend for their human

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 resource requirements on such external organizations whose core business is to provide
human resources. This strategy is called 'outsourcing'.
b. Vast and fast source: The best strategy to get vast human resources immediately is internet
The following factors should be taken into consideration in formulating the recruitment policy.
They are:
Government policies;
Personnel policies of other competing organizations;
Organization’s personnel policies;
Recruitment sources;
Recruitment needs;
Recruitment cost;
Selection criteria and preference, etc.

A number of modern recruitment sources are being used by the corporate sector in addition to
traditional sources. These sources are divided into internal and external.
a. Internal sources
The internal sources of recruitment are transfers, promotions, upgrading, demotion, retired
employees, retrenched employees, dependents and relatives of deceased employees.
b. External sources
The external sources are press advertisements, educational institutes, placement agencies/
outsourcing, employment exchanges, labor contractors, unsolicited applicants, employee
referrals, recruitment at factory gate.
Training is the act of increasing the knowledge and skill of an
employee for doing a particular job. Training is a short-term
educational process and utilizing a systematic and organized
procedure by which employees learn technical knowledge and
skills for a definite purpose.

The personnel manager formulates the following training

objectives in keeping with the company's goals and
objectives:

a. To prepare the employee, both new and old to meet the present as well as the changing
requirements of the job and the organization.
b. To prevent obsolescence.
c. To impart the new entrants the basic knowledge and skills they need for an intelligent
performance of a definite job.
d. To prepare employees for higher level tasks.
e. To assist employees to function more effectively in their present positions by exposing them
to the latest concepts, information and techniques and developing the skills they will need in
their particular fields.
f. To build up a second line of competent officers and prepare them to occupy more
responsible, positions.

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g. To broaden the minds of senior managers by providing them with opportunities for an
interchange of experiences within and outside with a view to correcting the narrowness of
outlook that may arise from over-specialization.
h. To develop the potentialities of people for the next level job.
i. To ensure smooth and efficient working of a department
j. To ensure economical output of required quality
k. To promote individual and collective morale, a sense of responsibility, co-operative attitudes
and good relationships.

Benefits of training
a. Leads to improved profitability and/or more positive attitudes toward profits orientation
b. Improves the job knowledge and skills at all levels of the organization
c. Improves the morale of the workforce
d. Helps people identify with organizational goals
e. Helps create a better corporate image
f. Fosters authenticity, openness and trust
g. Improves the relationship between boss and subordinate
h. Aids in organizational development
i. Organization learns from the trainee
j. Helps prepare guidelines for work
k. Aids in understanding and carrying out organizational policies
l. Provides information for future needs in all areas of the organization
m. Organization gets more effective in decision-making and problem solving
n. Aids in development for promotion from within
o. Aids in developing leadership skill, motivation, loyalty, better attitudes and other aspects that
successful workers and managers usually display
p. Aids in increasing productivity and/or quality of work
q. Helps keep costs down in many areas, e.g. production, personnel, administration etc.
r. Develops a sense of responsibility to the organization for being competent and
knowledgeable.
s. Improves labor-management relations
t. Reduces outside consulting costs by utilizing competent internal consulting
u. Stimulates preventive management as opposed to putting out fires
v. Eliminates sub-optimal behavior (such as hiding tools)
w. Creates an appropriate climate for growth and communication
x. Helps employees adjust to change
y. Aids in handling conflict, thereby helping to prevent stress and tension.

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