TOPIC #16

BY: RIZ RALPH N. SAPUNGAN

 OBJECTIVES
At the end of the discussion you will be able:

1. To know the requirements and costs of staffing

2. To choose your own role in the business
3. To know the importance and procedure of
registering your business

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1
STAFF REQUIREMENTS
AND COSTS
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 What is Staffing?
▰ Staffing is an important management function.
▰ It relates to the recruitment, selection, development,
training, and compensation of human resources in an
organization.
▰ It is a continuous management function and involves
the top management of most businesses.
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 IMPORTANCE OF STAFFING

The key reasons why staffing is important in organizations are:

1. Efficient Performance of Other Management Functions.

2. Improved Productivity
3. Development of Human Capital
4. Building Morale and Motivation of Staff
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1. Efficient Performance of Other
Management Functions
Staffing is an important function as it ensures efficient
performance of all other management functions.
Staffing involves recruitment and deployment of quality
personnel in various positions across an organization.

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2. Improved Productivity

Another important contribution of the staffing process is

its contribution to improved Human Resources
productivity.

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3. Development of Human Capital

Staffing deals with the development and capacity

building of the existing and new staff.

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4. Building Morale and Motivation of Staff

Staffing not only deals with the recruitment of staff, but it

also entails assessing their performance and rewarding
them.

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WHEN TO HIRE A
STAFF?

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HIRING NEW STAFF

▰ Positive aspect is, the fact that you are thinking of hiring new
team member demonstrates business must be prospering and
growth is on the cards.
▰ But, there are lots of things you need take into account, and
most importantly knowing when to actually take new members
on board is one of them.
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WHEN TO HIRE?

1. Your turning down work

2. You’ve identified new sources of potential revenue streams.

3. Your customers are complaining.

4. The quality of your products and services are suffering.

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WHEN TO HIRE?

5. You don’t have time to do daily financials, bookkeeping,

and paperwork.

6. You need someone with a specific skillset.

7.You can’t find any time for a break or a vacation.

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CONCLUSION:
Remember, don’t hire an employee if:

▰ You’re desperate.

▰ You don’t have a specific job for them to do.

▰ They are the first person who applies.

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 7 STAFFING PROCESS STEPS

Placement
Performance
And
Recruitment Appraisal
Orientation

Assessing
Training and
Manpower Selection Development
Compensation
Needs

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 1. ASSESING MANPOWER NEEDS
Based on work that needs to be done, it should be fairly easy to estimate what
your manpower requirements are.
You can do this by using:
WORKLOAD ANALYSIS
Determining the various jobs
being done and any existing
organizational objectives.
WORKFORCE ANALYSIS
Assessing the existing abilities
of the current employees, what
is missing, and how much
manpower is necessary.
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2. RECRUITMENT

▰ Exploring the different sources available for finding new employees.

▰ Determining how dependable each of these sources are.
▰ Deciding which sources you wish to use.
▰ Inviting applicants from these sources to interview for the positions
available.

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 3. SELECTION

When selecting your new employee , it is often necessary to:

▰ Perform a preliminary screening
▰ Carry out an interview
▰ Do reference and background checks
▰ Decide on the employee you wish to hire
▰ Require drug testing and any other necessary medical test
▰ Make the job offer
▰ Set up the employment contract
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4. PLACEMENT AND ORIENTATION

You will first need to place your new employee in the position of your
choosing based on their abilities.
Once this is done, they will need to be informed of the different facets of the
position and company, such as:

▰ The job they will be doing

▰ The jobs others around them will be doing
▰ The nature of the products being produced
▰ Policies and Rules
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5. TRAINING AND DEVELOPMENT

Once the new employee is properly informed about

the position and company they are coming to work
for they will need training.

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6. PERFORMANCE APPRAISAL

After the employee has/had a chance to get

started in their position, you will want to assess
their performance and give them any feedback
they require in terms of growth and success.

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7. COMPENSATION

In order to maintain a fair work environment and

encourage your employees to stick with you, it is
important that you assess your wage structure to ensure
that everyone is getting the compensation they deserve.

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“One of the biggest challenges for a business
owner, especially in a small organization, is
knowing how, when, or if they should recruit
extra staff. Hiring new staff is a costly affair,
and if you get it wrong, it could be detrimental
to your firm.”

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 Staff Cost
When we say staff cost, which goes far beyond employee
wages, there are many bits and pieces that can go
unaccounted for if you don’t know to pay attention to
them.

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WHY SHOULD YOU CARE
OF STAFF COST?

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YOU SHOULD CARE ABOUT STAFF
COST BECAUSE IT HELPS YOU TO:
▰Set optimal prices that cover costs and maximize your profits.
▰Determine how many additional employees you are able to afford.
▰Calculate where your revenue needs to be to proceed with new
growth initiatives.
▰Pinpoint leaks that are unnecessarily draining your earnings.
▰Monitor spending trends so you can flag potential fraud activity.
▰Move your way out of being involved in the day-to-day production
and spend more time where you want to.
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WHAT MAKES UP STAFF COST?

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STAFF COST

▰ Recruiting Costs ▰ Paid Leave

▰ Human Resources ▰ Training and Development
▰ Salary ▰ Office Space
▰ Payroll Taxes ▰ Consumables
▰ Benefits ▰ Insurance
▰ Incentives ▰ Equipment

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 RELIABLE STAFF COST FORMULA

▰Total all of the expenses in each category for the year.

▰Divide that sum by the number of employees you have to
get the cost per employee.
▰Break the cost down per hour by dividing the cost per
employee by the number of hours worked per year.

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2
CHOOSING YOUR OWN
ROLE IN BUSINESS
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What is BUSINESS ROLE?

Business role is a group of related

skills with a level of authority to
perform a given task.

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BUSINESS ROLE

1. LEAD MANAGEMENT POSITION

2. KEY PERSONNEL

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Lead Management Position
1. Chief Executive Officer or President
2. Chief Operating Officer or Vice President of Operations or General Manager
3. Vice President of Marketing or Marketing Manager
4. Chief Financial Officer or Controller

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LEAD MANAGEMENT POSITION

1. Chief Executive Officer (CEO) or President

This person will be the driving force behind the
company; he or she will make things happen, put
together the resources to support the company
and take the product to the market place.

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LEAD MANAGEMENT POSITION

2. Chief Operating Officer (COO), Vice President

of Operations or General Manager
Whether called an organizer, an inside manager or
an operations person, this person is the one who
will make sure company operations flow smoothly
and economically.

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LEAD MANAGEMENT POSITION

3. Vice President of Marketing or Marketing

Manager
Few businesses can be successful without
marketing their products to the customer.

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LEAD MANAGEMENT POSITION

Chief Financial Officer (CFO) or Controller

The responsibility of one role is to seek money;
that is, to look for investors and deal with banks,
lenders, etc.

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LEAD MANAGEMENT POSITION

Vice President of Production or Production

Manager
Making sure goods and services are produced
safely, cost-effectivly and on time and that they
meet the required quality standards.

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 KEY PERSONNEL
1. Operations Manager
2. Quality control, safety, environmental manager
3. Accountant, bookkeeper, controller
4. Office Manager
5. Receptionist
6. Foreperson, Supervisor, Lead Person
7. Marketing Manager
8. Purchasing Manager
9. Shipping and receiving person or manager
10. Professional Staff
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KEY PERSONNEL

1. Operations Manager
This individual is the leader for the operation and has
overall responsibility for the financial success of the
business. The operations manager handles external
relations with lenders, community leaders and vendors.

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KEY PERSONNEL

2. Quality control, Safety, Environmental

Manager.
This is a key function in any industry and, in particular,
one that deals in food products.

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KEY PERSONNEL

3. Accountant, Bookkeeper, Controller.

The individual filling this role has the responsibility for
monthly income statements and balance sheets,
collection of receivables, payroll and managing the cash.

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KEY PERSONNEL

4. Office Manager
The person in this slot also may serve as human
resource director, purchasing agent and "traffic
cop" with salespeople and vendors.

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KEY PERSONNEL

5. Receptionist
The receptionist handles phone calls, greets
visitors, handles the mail, does the billing and
performs many other tasks as required by the
office manager.

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KEY PERSONNEL

6. Foreperson, Supervisor, Lead person.

This individual is the second-in-command in the
shop and will oversee production in the absence
of the owner, general manager or president.

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KEY PERSONNEL

7. Marketing Manager
If finances permit, a marketing manager may be
on staff to handle all aspects related to
promoting and selling the product.

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KEY PERSONNEL

8. Purchasing Manager
Duties of this position may be filled by either or
both the general manager/top management
person and the office manager.

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KEY PERSONNEL

9. Shipping and Receiving Person or

Manager
This may not be a full-time position in a
start-up business.

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KEY PERSONNEL

10. Professional Staff

Instrumental in each company, new or existing,
are the firm’s professional staff resources.

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CHOOSING A ROLE

Conduct a realistic assessment of what aspects

of the business you are best suited to manage as
well as those you most enjoy, and determine what
functions you will be able to fit.

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3
TO REGISTER OR NOT
REGISTER THE
BUSINESS? 52
 “Registering a business is the
smart choice for a business owner
to obtain a business license.”

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It doesn’t matter if you intend to set up
a business where you’re the SOLE
PROPRIETOR or you’re looking at
operating a PARTNERSHIP or
CORPORATION with other people you
have to register if you want to do
BUSINESS LEGALLY.

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WHY IS IT IMPORTANT TO
REGISTER OUR BUSINESS?

1. You’ll be able to avoid fines and possible jail time.

2. You’ll have proper access to essential financial services.
3. Your business will enjoy a better reputation among
customers and investors.
4. Your business will have more opportunities for growth.
5. You will have more confidence promoting your business.
6. Your business will be able to get business financing easily.

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WHERE TO REGISTER OUR BUSINESS IN
THE PHILIPPINES?

LGU
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MAPS

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 BUSINESS NAME REGISTRATION
Sole Proprietorships
❑ Provide your personal and
business information
❑ Choose your scope of business
(Barangay, City/Municipality,
Regional or National)
❑ Prepare at least 5 possible names
for your business
❑ Pay the required fees
❑ Print your DTI Certificates
Partnership or Corporations
❑ Create and verify your account
❑ Prepare at least 5 possible names
for your business
❑ Provide partnership information
❑ Upload required documents and
submit application online
❑ Have the papers notarized once
approved
❑ Pay required fees
❑ Wait for the issuance of Certificate
of Registration
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 BIR REGISTRATION

❑ Answer the questionnaire

❑ Send the duly filled out questionnaire together with the other required
requirements listed on the website to the RDO email address (will
depend on the principal place of business)
❑ Settle the required fees
❑ Wait for the BIR email on the status of your application and issuance
of your application and issuance of Certificate of Registration
❑ Process the Authority to Print for invoices/receipts
❑ Register the books of accounts

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 LGU
Barangay Clearance
❑ Submit DTI or SEC Registration
certificate, contract of lease or
proof of ownership, Valid IDs,
CTC or Cedula and sketch map of
business location.
❑ Pay the fee and get you Barangay
Clearance
Business Permit
(Mayor’s Permit)
❑ Submit DTI or SEC Registration
certificate, Barangay Clearance,
contract of lease or proof of
ownership, Valid IDs, CTC or
Cedula and sketch map of
business location.
❑ Pay the fee and get you Mayor’s
Permit and Business Plate
❑ Make sure to comply with the
other requirements within the
specified period (e.g. sanitary
permit, etc.)
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61
Exempted from Registering

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Business Registration is necessary for every business
owner, but its a time consuming task.
So, it is suggested that you hire a registered agent for
all legal formalities and paperwork.
It will help you concentrate on your business start-up
plans.

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THANKS!

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