SENIOR HIGH SCHOOL

ABM - Specialized Subject

4th Quarter

ENTREPRENEURSHIP

VIRGILIO R. JAO JR. (PhD Candidate)

Department of Education Republic of the Philippines

 SENIOR HIGH SCHOOL

ENTREPRENEURSHIP
Quarter 4 - Module 2

The Supply Chain and the Recruitment

Process in Relation to the Business
Enterprise

Prepared By:

VIRGILIO R. JAO JR.

Master Teacher I

Executed By:

Venus M. Yagyagan Ruphella L. Esperanza

Teacher II LGU Teacher

Aileen N. Labao
LGU - Teacher

We value your feedback and recommendation.

Department of Education Republic of the Philippines

 ENTREPRENEURSHIP
Quarter IV – Week 2

CONTENT STANDARD:
The learner demonstrates understanding of environment and market in one’s locality/town.

PERFORMANCE STANDARD:
The learner independently creates a business vicinity map reflective of potential market in one’s
locality/town.

WHAT WILL YOU LEARN?

At the end of this module, you should be able 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.
4. Demonstrate honesty in answering the activity.

WHAT I NEED TO KNOW?

This module was designed and written with you in mind. It is here to help you to describe 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.

WHAT DO YOU ALREADY KNOW? PRE-TEST

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 considered what kind of activity?

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

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 c. flextime plans.
b. core time. d. none of the above.

You have finished answering the pre-test. You may request your facilitator/guardian to check your work.
Congratulations and keep on learning!
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 PAD paper.
LET US STUDY:

The Supply Chain and the Recruitment Process

in Relation to the Business Enterprise

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 more than 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.

Nature of Supply Chain Management

 Supply chain includes those various firms included in the execution of the activities needed to
produce and transport a product or service to consumers or industrial users. A supply chain comprises
supplies that provide raw materials to a producer, wholesalers and retailers that distribute finished goods to
consumers. Supply Chain Management (SCM) is the supervision of materials, information, and finance
as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. This involves
collaborating and incorporating flows both within and among companies. Supply chain activities cover
everything from product development, sourcing, production, and logistics as well as the information systems
needed to coordinate these activities. It is a shared approach to getting goods from manufacture to consumer.

Key Process of Supply Chain Management

There are eight critical business processes in which supply chain managers must focus:

1. Customer Relationship Management - this will allow companies to prioritize their marketing focus on
different customer groups based on each group’s long term value to the company or supply chain.
2. Customer Service Management - this is a multi-company, unified system of responding to customer’s
complaints, concerns, questions or comments.
3. Demand Management - this process tries to align supply and demand throughout the supply chain by
foreseeing customer requirements and creating an action plan before actual purchasing of customer.
4. Order-fulfillment - this engages in generating, filling, delivering and providing on-the-spot service for
customer’s orders.
5. Manufacturing Flow Management - this ensures that firms in the supply chain have necessary
resources to produce with flexibility and to move products in a multi stage production process.
6. Supplier Relationship Management - this provides structural support for developing and maintaining
good relationships especially with highly valued suppliers in order to gain performance advantages.
7. Product Development and Commercialization - this facilitates the joint development and marketing of
new products and services among a group of supply chain partner firms.
8. Returns Management - this enables firms to manage volumes of returned product efficiently while
minimizing related costs.

Primary Activities

1. Inbound Logistics - Arranging the inbound movement of materials, parts, and/ or finished
inventory from suppliers to manufacturing or assembly plants, warehouse, or retail stores.
2. Operations - Concerned with managing the process that converts inputs (in the forms of raw
materials, labor, and energy) into outputs (in the form of goods and/or services).
3. Outbound Logistics - The process related to the storage and movement of the final product and
the related information flows from the end of the production line to the end user.
4. Marketing and Sales - Selling a product or service and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society at
large.
5. Service - Includes all the activities required to keep the product/service working effectively for the
buyer after it is sold and delivered.
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.

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.

RECRUITMENT

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.

Recruitment is the process of convincing or encouraging a prospective applicant to fill in a vacant position.

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.

SELECTION

It is the process through which organizations identify and make decisions about the applicant/s who will be
allowed to join the company. Organizations should create a selection process in support of its job
descriptions and should be able to identify applicant/s that have the necessary knowledge, abilities, skills,
and other characteristics required in the job.

Steps in Selection

1. Reception of Applicants - It involves screening of applicants by which applicants are interviewed.

2. Preliminary Interview - The purpose of preliminary interview is to check if the applicant is qualified
for the position and eliminate those applicants who are disqualified.

3. Filling out of Application Form - This serves as a guide in interviewing the applicant to determine if
the applicant matches the job requirements as indicated in the job description and job specification. This
serves also as a basis in checking applicant’s school records, former employers and references.

4. Employment Test - Employment test is given to measure applicant’s abilities needed for the job.

5. Final Interview by Immediate Supervisor or Department Head - To determine who among the
applicants should be hired and fitted for the job.

6. Physical and Medical Examination.

Medical Examination - A medical examination helps to determine if the applicant is fit to work
or to find out health concerns that might hinder his ability to perform the required job.

Pre-Employment Test - A pre-employment background check is essential in hiring an employee

to obtain important information of the applicant in terms of work performance and his ability to do a
specific job and other essential information required for the job before deciding to hire an applicant.

7. Hiring - The applicant who passed the selection requirements is sent to the Human Resource Department
for final completion of the hiring process.

8. Orientation - The new employee/s are oriented on companies policies, rules, and regulations and
informed or directed about his job by the immediate supervisor or training officer.

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, seminars, etc.

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.

LET US APPLY WHAT YOU 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.

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? (Performance Task)

You 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 the Interviewer are asking you the following questions during an interview. Answer them briefly as
you would during your interview. Please dress appropriate while you are doing your interview. Use other
person within your home or friends, classmates etc. to be the interviewer.

You can send your output video to your teacher using email address or other platforms.

Here the sample questions that you might use during the interview.

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. How do you see ten (10) years from now?

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!

HOW MUCH HAVE YOU LEARNED FROM THIS MODULE? (POST TEST)
Part I. Multiple Choice. Choose the letter of the best answer. Write the chosen letter on a separate sheet
of PAD 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
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

Part II. 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.

Enrichment Activity:
A. Answer the following questions briefly. Write your answer on a separate sheet of PAD paper.

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?

___________________________________________________________________________________
___________________________________________________________________________________

This is the end of Module two (2). You did a great job! It is Indeed an achievement.
Congratulations!!! Hard work pays off and you really proved it!!! Try to learn more about
Entrepreneurship in the next Modules. Thank you for being patient, honest, and committed.

REFERENCES:

BOOKS

Ronaldo S. Batisan, DIWA Senior High School Series: Entrepreneurship Module. Diwa
Learning Systems Inc.

Angeles A. De Guzman. Entrepreneurship (For Senior High School, Applied subject,

ABM Strand. Lorimar Publishing, Inc 2018, 25 – 26.

Edralin, Divina M. Entrepreneurship. Quezon City: Vibal Group, Inc. 2016, 80 – 83.

Leedy, P. and Ormrod, J. Practical Research: Planning and Design 7th Edition. (Merrill
Prentice Hall and SAGE Publications, 2001),

Nick L. Aduana, Entrepreneurship in Philippine Setting (for Senior High School), 2017

Dr. Eduardo A. Morato Jr., Entrepreneurship, 2016

Angeles A. De Guzman, Entrepreneurship for Senior High School Applied Subject ABM
Strand, Lorimar Publishing,p.1-5
Ronaldo S. Batisan, Entrepreneurship: Diwa Senior High School Series, Diwa Learning
Systems Inc., p. 16-20

Eduardo A. Morato Jr., Entrepreneurship, 1st ed., Manila, Philippines: REX Books
Store,p.13

Nick L. Aduana, Etrepreneurship in Philippine Setting for Senior High School, 2017,
C&E publishing, Inc.p.46-51

Angeles A. De Guzman, Entrepreneurship for Senior High School Applied Subject ABM
Strand,Lorimar Publishing,p.25-26

Raymund B. Habaradas and Tereso S. Tullao,Jr., Pathways to

Entrepreneurship,2016,Phoenics publishing house,p.17-28

Aduana, Nick L. "Chapter 5/Lesson 3 The Marketing Mix." In Entrepreneurship In

Philippine Setting For Senior High School, 184-199. Quezon City, Philippines: C&E
Publishing, 2016.

Aduana,N (2015). Financial statements; Preparation, presentation, analysis and

interpretation, presentation.Quezon City, Philippines: C & E Publishing,Inc.

Angeles A. De Guzman, Entrepreneurship for Senior High School Applied Subject ABM
Strand,Lorimar Publishing,p.25-26

Banastao,C.,& Frias, S.(2008) Entrepreneurship.Quezon City Philippines: C & E

Publishing,Inc.

Nick L. Aduana, Etrepreneurship in Philippine Setting for Senior High School, 2017,
C&E publishing, Inc.p.46-51

Raymund B. Habaradas and Tereso S. Tullao,Jr., Pathways to

Entrepreneurship,2016,Phoenics publishing house,p.17-28

Aduana, Nick L. Entrepreneurship in the Philippine Setting for Senior High School.
Quezon City.C & E Publishsing, Inc. 2016.

Morato, Eduardo A. Entrepreneurship. Manila. Rex Bookstore, Inc. 2016.

Batisan, Ronaldo S. Entrepreneurship Module, Diwa Senior Highschool Series, Diwa

Learning System Inc. Legaspi Village, Makati City Philippines, copyright 2016.

Lopez, Rafael Jr. Basic Accounting for Non-Accountants. 2015

Lopez, Rafael Jr. Fundamentals of Accounting. 2016

Rabo, Tugas, and Salendrez, H.E. Fundamentals of Accountancy, Business and

Management. Vibal Group Inc. 2016

Lopez, Jr. Rafael M. Fundamentals of Accounting, 2014-2015 Edition

Morato, Eduard, Jr. A. Entreprenuership, Rex Bookstore 2016

 Teaching Guide for Senior High School, Fundamentals of Accountancy, Business, &
Management 1, CHED in collaboration with PNU.

ELECTRONIC RESOURCES

https://articles.bplans.com

https://smartasset.com

https://www.scirp.org/(S(351jmbntvnsjt1aadkposzje))/reference/ReferencesPapers.asp
x?ReferenceID=2026950

https://www.google.com.ph/search?q=what+is+a+supplier+in+business&oq=what+is+a
+sup plier&aqs=chrome.0.69i59j69i57j0l4.6134j0j7&sourceid=chrome&ie=UTF-8

https://www.google.com.ph/search?q=value+chain&oq=value&aqs=chrome.1.69i57j69i
59j0l4.3827j0j9&sourceid=chrome&ie=UTF-8

https://www.google.com.ph/search?ei=IDdFXIaUMtrrwQPKrrqgCA&q=supply+chain
&o q=supp&gs_l=psy-
ab.1.0.0i67l8j0l2.337222.338710..340558...1.0..0.512.1404.0j1j3j5- 1......0....1..gws-
wiz.......0i71j0i131.pwF4FAungm0