Senior High School

Entrepreneurship
Quarter 2 – Module 1- Lesson 2:
The Supply Chain and the
Recruitment Process in Relation
to the Business Enterprise

Writer:
LOVE JOY C. OCAMPO
T-II – DIOSDADO MACAPAGAL
MEMORIAL HS
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN

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 What I Need to Know

This module was designed and written with you in mind. It is here to help you
to describe the The Supply Chain and the Recruitment Process in Relation to the
Business Enterprise. The scope of this module permits it to be used in many different
learning situations. The language used recognizes the diverse vocabulary level of
students. The lessons are arranged to follow the standard sequence of the course. But
the order in which you read them can be changed to correspond with the textbook you
are now using.

The module is composed of one lesson and sub-topics, namely:

 Lesson 2 – The Supply Chain and the Recruitment Process in Relation to the
Business Enterprise

After going through this module, you are expected to:

1. Select potential suppliers of raw materials and other inputs necessary for the
production of the product or service.
2. Discuss the Supply chain in relation to the business enterprise
3. Know the process on how to recruit qualified people for one’s business
enterprise.

What I Know

Hi! Good job on your progress, we are now moving forward to our next lesson.
As our practice we will have first our diagnostic test to check your prior knowledge
about the current lesson . If you got a perfect score, you can skip this lesson and
proceed to the next module, but if you didn’t get a perfect score, you don’t have to
worry because this module will help and guide you to understand the topic Are you
ready? Let’s start.

Directions: Choose the letter of the best answer. Write the chosen letter on a separate
sheet of paper.

1. Which of the following is not a characteristic that makes information useful?

a. It is inexpensive c. It is reliable
b. It is relevant d. It is timely

2. In the value chain concept, upgrading IT is considerd what kind of activity?

a. Primary Activity c. Structured Activity
b. Service Activity d. Support Activity

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 3. A firm, its suppliers, and it's customers collectively from which of the
following?
a. Recruitment c. Supply Chain
b. Selection d. Value Chain

4. The process involved in recruiting, hiring, training, evaluating, compensating,

and laying off people is called:
a. Human Resource Management c. Recruiting
b. Human Resource Planning d. Selection

5. Which term describes a study of what is done by employees who hold various
job titles?
a. Inventory c. Job Description
b. Job Analysis d. Job Specification

6. A job __________ is a summary of the objectives of the job, the type of work to be
done, the responsibilities and duties, the working conditions, and the
relationships of the job to other functions.
a. Analysis c. Design
b. Description d. Specification

7. All of the following are sources of internal recruiting except for:

a. Advertisements c. Retained Employees
b. Promotions d. Transfers

8. Which is not a step in the selection process?

a. filling out an application. c. taking an employment test.
b. taking a physical exam d. none of the above

9. The activity that orients new employees to the organization, to fellow employees,
to their supervisors, and to the policies of the company is called:
a. employee orientation c. networking
b. on-the-job training. d. off-the-job training

10. A work schedule that gives employees some freedom to adjust when they work
is called:
a. compressed workweek
b. core time.
c. flextime plans.
d. none of the above.

Lesson The Supply Chain and the

1 Recruitment Process in Relation to

the Business Enterprise

In the previous modules, we have discussed about the 4Ms of Production and
how one can make a prototype of your product. Let us have our review of what we

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have learned before we proceed with the supply chain and the recruitment process in
relation to the business enterprise.

What’s In

Activity: In your own words describe each of the 4+1 Ms of Production and how are
they important in a business enterprise operations.

1. __________________________________________________________________________
__________________________________________________________________________

2. __________________________________________________________________________
__________________________________________________________________________

3. __________________________________________________________________________
__________________________________________________________________________

4. __________________________________________________________________________
__________________________________________________________________________

5. __________________________________________________________________________
__________________________________________________________________________

Notes to the Teacher

This module contains helpful tips and strategies that will help you
in guiding the learners. It is important to review learners to gauge
what they have learned before proceeding with a new lesson

What’s New

This activity will give you an overview of what we will discussed in this lesson.

Activity: Fill out the blank bio-data form below. We will use this for our next
activity before this lesson ends. Answer it on a separate sheet of paper.

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 What is It

Parts of the 4Ms of Production is the Methods and Manpower. In this lesson we
will dig deeper what are the process that are included in the manufacturing flow by
learning on how to select a potential supplier of the company’s raw materials and
differentiating value chain from the supply chain in relation to the business
enterprise. We will also talk about the recruitment process a business enterprise apply
to be able to hire the qualified manpower.

Why do we need to know how to select a potential supplier? This is actually

crucial when it comes to business, because choosing the right supplier involves much

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more than scanning scanning a series of price list. There are a lot of factors to
consider such as value for money, reliability and service. How you weigh up the
importance of these different factors will be based on your business' priorities and
strategy.

A strategic approach to choosing suppliers can also help you to understand

how your own potential customers weigh up their purchasing decisions.

This guide illustrates a step-by-step approach you can follow that should help
you make the right choices. It will help you decide what you need in a supplier,
identify potential suppliers and choose your supplier.

1. Thinking strategically when selecting suppliers. Have a supplier that can

match your business needs or much better exceeds it. It is also better to
have a choice of sources so when one lets you down you can have a back up.
2. What you should look for in a supplier. Your supplier should be reliable,
consistent with the quality of supplies, value for money, have strong service
and communication, financially secured, and have a strong partnership
approach.
3. Identifying potential suppliers through variety of channels. It is best to
build a shortlist of possible suppliers through; a)recommendations;
b)directories; c) trade associations; d) business advisors; e)exhibitions; and
f)trade press
4. Choosing a supplier. When considering the firms on your shortlist, ask
yourself the following questions:

 Can these suppliers deliver what you want, when you want it?
 Are they financially secure?
 How long have they been established?
 Do you know anyone who has used and can recommend them?
 Are they on any approved supplier lists from trade associations or
government?

Do some research and try to slim your list down to no more than four or
five candidates. It's a waste of time for you and the potential supplier if you
approach them when there's little chance of them fulfilling your
requirements.
5. Getting the right supplier for your business by knowing your needs. Get
a quotation, and compare them between potential suppliers. Remember that
price isn’t everything. Spend time on research and ask around about them,
if it isn’t too much you can also do credit check. Make sure you agree on
service levels before you start and don’t buy from too many suppliers, but
don’t have just a single one.

Now that we have selected our suppliers, we can now go to the distribution
process. Every business organization is part of at least one supply chain. This time we
will differentiate the value chain from the supply chain.

The term value chain refers to the process in which businesses receive raw
materials, add value to them through production, manufacturing, and other processes
to create a finished product, and then sell the finished product to consumers. A
supply chain represents the steps it takes to get the product or service to the
customer, often dealing with manufacturer and aftermarket parts.
While a supply chain involves all parties in fulfilling a customer request and
leading to customer satisfaction, a value chain is a set of interrelated activities a
company uses to create a competitive advantage.

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 Thus, both are important in a business enterprise setting for it to be successful.
Supply chains are sometimes referred to as value chains because they reflect the
concept that value is added as goods and services progress through the chain.

As the business grows, the entrepreneurs should hire a qualified employees

that can handle operational functions, so that he or she will be free from daily
activities and thus can focus on the strategic and management functions of the
business.

The following our guide on how company selects the right human resources
who will handle certain business operations.

A. Job Description – enumerates the duties and responsibilities of the

potential employee, including the scope, limitations and terms and
conditions of employment. Parts of the job description includes:
 Job title, Compensation and benefits, Duties, Responsibilities and
accountabilities and Work schedules.

B. Employee Qualification – this includes the criteria of the company to hire a

particular person, such as:
 Educational background, Work experience, Specific skill or
knowledge and Work attitude

C. Preparatory Selection of Job Applicants – After the job description and

employee qualifications are finalized by the entrepreneur, he or she now
preselects a set of candidates for the position required. However, once the
business is already sizeable and established the entrepreneur can hire a
Human Resource Department (HRD) that will handle the selection.
D. Selection of Job Applicants – Screening and picking the most qualified and
most suited candidate for the job. The preliminary screening is through
qualifications. Usually they conduct qualifying exams in Math, English and
Logic, Qualitative Exams or Psychology test and an interview for the short
listed candidates.

Remember that in an interview the entrepreneur promotes the business

to the candidate while the candidate sells himself or herself by citing his or her
work experience or educational background.

E. Job Offer – Once the entrepreneur has been convinced already of the job
credentials and the interview answers of the candidate, the job contract is
now prepared. A Job contract generally summarizes the terms and
conditions of the candidate’s employment with the business.

F. Employment Development – Training people is one of the biggest

investments of an entrepreneur or a businessman. Entrepreneurs should
devise a strategies on how to keep employees satisfied working in the
company.

Training tools for employees

1. Employee Orientation 6. Further Training

2. On-the-Job Training (OJT) 7. Online Learning Programs
3. Buddy System 8. Internal Training Programs
4. Mentor-Mentee Program 9. International or Local
5. Succession Plan Symposia, seminnars, etc.

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 Strategies for Employee Management

1. Competitive Salary Package – includes guaranteed bonuses,

performance bonuses, commissions and other monetary incentives.

2. Non-monetary benefits – medical coverage, leave credits, decent job

titles, flexible work schedules, awards and recognitions, transparency
and fairness in performance evaluation, channels where employees
can provide constructive feedback without the risk of being fired.

3. Additional benefits – annual trips, work from home opportunities,

scholarships, transportation and communication allowances, free
meals and drinks, fitness programs, sports programs, and other work
life balance programs.

Employee training and development is a major thrust of every

entrepreneur because employees are the best assets of a business
enterprise.

What’s More

Did you enjoy the mini-lesson of the module? To better understand it, let’s have
another activity. Enjoy!

Activity: Solve the crossword puzzle. Identify which are being described below.

What I Have Learned

Good job you are almost done, did you enjoy the activity? Now it’s time for us to
check what we have learned by listing down the important facts that we have
understand about supply/value chain and the overall recruitment and selection
process.

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Activity: : Write down below your the key takeaways on the topic that we have
discussed above. Make your own generalization.

1. ______________________________________________________________
______________________________________________________________

2. ______________________________________________________________
______________________________________________________________
3. ______________________________________________________________
______________________________________________________________

4. ______________________________________________________________
______________________________________________________________
5. ______________________________________________________________
______________________________________________________________

What I Can Do

Congratulations! You are now ready to apply what you have learned about
Production. Time for us to exercise our brains.

Activity:
A. Draw a supply chain based on what we have discussed and describe their
functions.

B. As a future business owner how will you recruit your manpower and select
the best candidate? Write down your company’s recruitment process.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Assessment

In the beginning of this module we have our pre-test. Now, this will serve as
your post-test. This will test you if you were able to understand the lesson well. God
Bless!

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Multiple Choice. Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.

1. The Kitchen Therapy wanted to choose their supplier for their restaurant, the
following are to be considered except for one.
a. Consistency c. Reliability
b. Lazy d. Value for money

2. _____ is the process of searching for prospective employees and stimulating

them to apply for jobs in the organization.
a. Advertising c. Recruitment
b. Networking d. Selection

3. _______ is concerned with the problem of introducing or orienting a new

employee to the organization.
a. Induction c. Recruitment
b. Interviewing d. Selection

4. The process of eliminating unsuitable candidates is called _________.

a. Induction c. Recruitment
b. Interviewing d. Selection

5. Which of the following helps the managers with the information required to
make good human resources decisions?
a. Industrial relations c. Recruitment
b. Performance Appraisal d. Selection

6. The process of selection of employees is usually influenced by _______.

a. Principles and programs c. Strategies and objectives
b. Rules and regulations d. None of the above

7. Which of the following is used to measure the various characteristics of the

candidate?
a. Attitude test c. Proficiency test
b. Physical test d. Psychological test

8. When the candidate is put to hardship during interview, it is called_____.

a. In-depth interview c. Preliminary interview
b. Patterned interview d. Stress interview

9. Which of the following orders is followed in a typical selection process?

a. Application form, test and/or interview, reference check and physical
examination
b. Physical examination, test and/or interview, application form and
reference check
c. Reference check, application form, test and/or interview and physical
examination
d. Test and/or interview, application form, reference check and physical
examination

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 10. Identify the test that acts as an instrument to discover the inherent ability of a
candidate.
a. Aptitude c. Physical
b. Attitude d. Proficiency

True or False. Write TRUE if the statement is correct and FALSE if it is wrong

____________ 11. A company's supply chain involves the flow of materials and
information from suppliers, through production, to the end users.

____________12. In supply chain organizations, functions must operate independently

of each other.

____________ 13. Every business organization is part of at least one supply chain.

____________ 14. The materials in the supply chain flow toward the end of the chain,
while the information and the pesos move toward the beginning of the
chain.

____________ 15. Supply chains are sometimes referred to as value chains because
they reflect the concept that value is added as goods and services
progress through the chain.

Additional Activities

Can we now practice what we have learned?

Activity:

A. Answer the following questions briefly.

1. Write the recruitment and selection process in correct order:

______________________________________________________________________________
________________________________________________________________________

2. What is job description? ___________________________________________________

___________________________________________________________________________

3. What is supply chain and value chain? ____________________________________

___________________________________________________________________________

4. Explain why business shortlist before they interview? ______________________

___________________________________________________________________________
___________________________________________________________________________

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 B. Going back on o n our activity on page 4. We will do a role playing of the
recruitment and selection process. Hand over your Personal data sheet or bio-data
that you have written in a separate piece of paper. You are to apply as an Accountant,
suppose that I am asking you the following questions during an interview. Answer
them briefly as you would during your interview. You can use a separate sheet of
paper.

1. Tell me about yourself? _______________________________________________.

_________________________________________________________________________
_________________________________________________________________________

2. What is your greatest strength/weakness?_____________________________

_________________________________________________________________________
_________________________________________________________________________

3. Why do you want this job? ____________________________________________

_________________________________________________________________________
_________________________________________________________________________

4. Why should we hire you? _____________________________________________

_________________________________________________________________________
_________________________________________________________________________

5. What are your goals for the future? ___________________________________

_________________________________________________________________________
_________________________________________________________________________

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 Answer Key

15. True
14. False
13. True (Rubrics provided)
12. False Bio-Data (Fill-in)
11. True What's New
10. A
9. A (Rubrics provided)
8. D Answers vary
7. D 7. leave credits What's In
6. C 6. qualifications
5. B 5. reliable 5. B 10. C
4. D 4. supply chain 4. C 9. A
3. A 3. value chain 3. C 8. D
2. C 2. candidate 2. D 7. A
1. B 1. entrepreneur 1. A 6. B
Assesment What's more What I know

Rubrics for the Activities

Areas of 4 3 2 1
Assessment
Ideas Presents ideas in an Presents ideas in Ideas are too Ideas are vague
original manner a consistent general or unclear
manner
Understanding Writing shows Writing shows a Writing shows Writing shows
strong clear adequate little
understanding understanding understanding understanding
Word Choice Sophisticated use of Nouns and verbs Needs more nouns Little or no use
nouns and verbs make essay and verbs of nouns and
make the essay very informative verbs
informative
Sentence Sentence structure Sentence Sentence No sense of
Structure enhances meaning; structure is structure is sentence
flows throughout evident; sentences limited; sentences structure or flow
the piece mostly flow need to flow
Mechanics Few (if any) errors Few errors Several errors Numerous errors

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 Development Team of the Module

Writer: LOVE JOY C. OCAMPO – T-II Diosdado Macapagal Memorial HS

Editor: JANE P. VALENCIA, EdD – EPS – Mathematics
Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics

Illustrator:
Layout Artist:
Language Reviewer:

Management Team

ZENIA G. MOSTOLES, EdD, CESO V, Schools Division Superintendent

LEONARDO C. CANLAS, EdD, CESE. Asst. Schools Division Superintendent
ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent
CELIA R. LACNALALE, PhD, CID Chief
JANE P. VALENCIA, EdD, Education Program Supervisor, Mathematics
JUNE E. CUNANAN, Education Program Supervisor/ Language Editor
RUBY M. JIMENEZ, PhD., Education Program Supervisor, LRMDS

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