Leyte Normal University

GRADUATE SCHOOL
Tacloban City

_______________________________________________________

AGENCY PAPER

ARMED FORCES AND POLICE SAVINGS

AND LOAN ASSOCIATION INCORPORATED
_______________________________________________________

In partial fulfilment of the Course Requirements in

MM 501 – Principles and Theories of Management

________________________________________________________

Submitted To:

DR. NESTOR C. SEDANZA

Associate Professor V

Submitted By:

KRISTINE C AGUSTIN

Date Submitted:

February 18, 2021

 TABLE OF CONTENTS

Page Number
Cover Page ………………………………………………. i
Table of Contents………………………………………… ii

I. INTRODUCTION
Name and Location of Agency……………………. 3-4

Vision, Mission, and Core Values………………… 5

Form of Ownership ………………………………… 5
Composition of Management……………………… 6-8
Organizational Structure ………………………….. 9

II. MANAGEMENT FUNCTION PRACTICES

A. Planning…………………………………………..
B. Organizing………………………………………..
C. Leading……………………………………………
D. Controlling ……………………………………….

III. ANALYSIS AND RECOMMENDATIONS ………………………..

A. Strengths of the Agency ……………………………………….
B. Weaknesses / Areas Needing Improvement …………
C. Recommendations ………………………………………………

IV. CONCLUSION
…………………………………………………………….

APPENDICES
………………………………………………………………………
A. Documentation …………………………………………………..
B. Management Excellence Survey Questionnaire …..

REFERENCES
……………………………………………………………………..
 I. INTRODUCTION

Name of Agency

The Armed Forces and Police Savings and Loan Association Incorporated (AFPSLAI) is

a non-stock, non-profit corporation engaged in the business of accumulating savings

and using such accumulations for loans for home building and development and for

personal finance. As a Non-Stock Savings and Loan Association (NSSLA), AFPSLAI

transacts business only with a well-defined client – the members of AFP and PNP

community and their dependents. With an initial capital of P950,000.00 from AFP

Mutual Benefits Association, Inc. (AFPMBAI), AFPSLAI was established on December

1, 1972. The Association has been undisputed leader in the non-stock savings and loan

industry with total assets registered at P114B (as of 2019). It has more than 575,000

members from the AFP, PNP, BFP, BJMP personnel and their dependents, Civilian

Employees of AFP, PNP, DND, AFPMBAI, AFPGEN, RSBS and Pensioners.

The Association is supervised by the Bangko Sentral ng Pilipinas (BSP) and governed

by the provisions of Republic Act No. 8367 or the “Revised Non-Stock Savings and

Loan Association Act of 1997”, making it a legitimate savings and loan association.

AFPSLAI’s long list of products and services include: Capital Contribution Account,

Savings Deposit Account, Savings Deposit Remittance Account, Special Savings

Account, Pension Account, Salary/Pension/Multi-purpose Loan, Emergency Loan,

PVAO Pension Loan, Calamity Loan, Commutation Loan, Personal Loan, Back-to-Back

Loan, Real Estate Loan, Vehicle Loan, Pre-owned Vehicle Loan and Business Loan.
Living up to its commitment of bringing its product and services closest to its members,

AFPSLAI continues to expand its network. At present, it has 27 branch offices and more

than 50 Satellite Offices/Help Desks strategically located nationwide, from up north

(Baguio, Isabela, Clark, etc.) to down south (General Santos, Zamboanga, Cotabato,

etc.)

AFPSLAI has geared up for the upgrading of the capabilities of its branch and satellite

offices most especially in the area of information and communication technology. All of

its 27 branch offices are already on-line. Branch offices can now access and update

real-time data from the central database at the Head office. This means that AFPSLAI

can already bring its products and services to the members in the shortest time

possible.
Location of Agency

AFPSLAI Tacloban Branch is located at W.H Building 2 Unit-1B Maharlika Highway

Brgy. Pawing Palo, Leyte 6501.

Vision

Our Corporate Vision

By 2022, AFPSLAI is the leader in the financial services industry, in each market

segment where it operates, in the delivery of quality financial products and related

services, and is the role model for good corporate governance practices.

Mission

Our Corporate Mission

We are here to improve the quality life of our members by providing excellent

relevant financial products and related services.

Core Values

Malasakit sa mga Miyembro, sa Kumpanya at sa Bansa

Good Governance

Professionalism

Teamwork

Form of Ownership

AFPSLAI is a private corporation, non-stock and non-private association established

and registered with the Securities and Exchange Commission (SEC) in 1972.
Composition of Management

Our Organizational Set-up

AFPSLAI’s highest decision making body is the Board of Trustees elected by the

general membership every year. The day-to-day operations of AFPSLAI are handled by

the President and Chief Executive Office who is assisted by the Executive Vice

President and General Manager to whom the Senior Vice Presidents of the four

departments, namely Operations, Comptrollership, Treasury and Administration report.

Under the departments are divisions, offices, branches, units and sections each having

its own specialization. There are also staff offices reporting to either the Chairman of the

Board, President and CEO and EVP/GM, like the Office of the Board Secretariat,

Corporate Compliance Office, Risk Management Office, Internal Audit Division, Legal

Services Division and Information Systems Division.

Operations

This department generates loans, capital and membership for the Association. It attends

to the transactions of members particularly with respect to application for membership,

processing, releasing of loans and servicing deposits and withdrawal transactions. It

likewise brings AFPSLAI’s services closer to the members’ doorsteps particularly for

region-based clients.
Comptrollership

If the Association is to concentrate more on savings ad lending transaction and does not

keep tract of the recording and monitoring of financial transactions, its operations will be

in great shambles. The Comptrollership Department manages the members’ individual

loans, capital and savings account data as well as records/documents financial

transactions in accordance with generally accepted accounting principles and

prescribed policies by government institutions.

Treasury

The efficiency of any business activity demands that funds must be managed well and

cash flow and cash requirements must be properly handled. Loan payments of the

members must also be collected on time to sustain operations. AFPSLAI cannot extend

loans to the members if Treasury Department will not do its job – that of managing and

directing funds to be used for operations, monitoring of billing/rebilling and collecting

loan remittances and managing real property investments.

Administration

Administration Department recruits personnel, trains and develops employees,

administers compensation and benefits and make sure that labor management relations

are preserved. It upkeeps and maintains offices buildings and facilities, ensures

adequate supply of required goods and items and protects and safeguards AFPSLAI

clients and employees as well all physical and financial assets from harmful elements.
Other Offices

AFPSLAI has other independent staff offices. The Office of the Board Secretaries (OBS)

attends to all secretarial and administrative requirements of the Office of the Corporate

Secretary and the Board of Trustees.

Under the Office of the Board of Trustees are the Internal Audit Division (IAD) that

evaluates and recommends possible improvements on existing internal control and

governance systems, Corporate Compliance Office (CCO) which is responsible for

coordinating, monitoring and facilitating compliance with existing laws and regulations

and Risk Management Office which manages strategic, financial, operational and

regulatory risk exposures to a level acceptable to Association and stakeholders,

Under the Office of the President and CEO are the Corporate Affairs Division (CAD) that

oversees preparation and proper execution of Member Relations, Corporate

Communication and CSR programs, the Corporate Planning Division (CORPLAN) that

evaluates the financial and operational performance of AFPSLAI and its subsidiaries on

a periodic basis, and the Information Security Office (ISO) that maintains information

security roles, responsibilities and accountabilities in the organization.

Under the Office of the EVP & GM are the Legal Services Division (LSD) that handles

litigation activities related to the filing, prosecution and defense of case, and Information

Systems Division (ISD) that handles daily batch posting of all AFPSLAI transactions,

installs, controls and maintains all computers and other computer-related resources of

AFPSLAI.
Organizational Structure
Tacloban Branch Organization Structure

BRANCH HEAD

Secretary Branch Driver/Messenger

Accountant Marketing Specialist

Accounting Staff

Field Representative Field Representative

Civilian Field Representative/Marketer

Assistant Branch Head

Senior Teller Loans Specialist Membership Service Specialist

 Teller Loans Staff Membership Staff

II. MANAGEMENT FUNCTION PRACTICES

Planning
ORGANIZING

Organizing is the process of coordinating and allocating a firm’s resources in order to

carry out its plans. Organizing includes developing a structure for the people, positions,

departments, and activities within the firm.

AFPSLAI organizing practices involves dividing up tasks (division of labor), grouping

jobs and employees (departmentalization) and assigning authority and

responsibilities (delegation).

Top Management

AFPSLAI top management is consists of Board of Trustees (BOT) which is composed of

15 members. The Chairman leads the Board and manages its affairs in the effective

discharge of his duties under the law and by-laws. In the absence of the Chairman, the

Vice Chairman acts in his stead and have such powers and duties as the Board

prescribes and delegates to him by the Chairman.

The authority of the Trustees is exercised in Board meetings where the Board acts

collectively. To perform its mandate, the Board holds monthly meetings, where the

President & CEO renders a report on the financial and operational performance of the

Association. Also part of the agenda is the report of the Board Committees. The Board

also holds special meetings when necessary.

The Board has adopted a Board Protocol which defines the duties, responsibilities and

the norms of conduct of the Association’s Board of Trustees; and the roles of the

Chairman of the Board, VICE Chairman of the Board and Corporate Secretary (in

addition to those prescribed by R.A No. 8367 Manual of Regulations for Non-bank

Financial Institutions, By-laws and other existing applicable laws, rules and regulations).

The AFPSLAI Board of Trustees is strongly committed to the sound and effective

practices in corporate governance. It continues to strive for the highest standard of

ethical conduct, integrity and value-based leadership.

The Board of Trustees delegates authority and powers to Board Committees to increase

efficiency and allow deeper focus on a specific areas. These committees are as follows:

Governance Committee, Risk Oversight Committee, Audit & Compliance Committee,

Human Resource & Compensation Committee, Credit & Collection Committee,

Membership & amendment Committee, and Information Steering Committee.

Governance Committee ensures that the Board governance system works effectively ad

that the corporate governance guidelines are adhered to and strictly observed by the

BOT and Corporate Officers. Risk Oversight Committee reviews, approves and

oversees the Association’s risk management strategies, activities and exposures. Audit

& Compliance Committee oversees the financial reporting, internal control system, audit

process, compliance with laws and regulations and risk management. Human Resource

& Compensation Committee oversees the formulation of strategic Human Resource

policies including compensation-related policies for both employees and the Board of

Trustees. Credit & Collection Committee ascertains that the credit and collection

support system works efficiently and attends to related activities of Real and Other

Properties Aquired (ROPA) management for transactions beyond the authority level

given to management. Membership & Amendment Committee oversees aspect in

relation with membership management. It also reviews and deliberates on proposed

amendments/revisions to the Articles of Incorporation and By-laws. Information

Technology Steering Committee provides governance to ensure the alignment of the IT

Strategic Plan with the Association’s Business Strategy, optimization of resources

management, IT value delivery, performance measurement and the effective and

efficient use of IT to achieve business objectives and effective IT risk management

implementation.

Top-level managers develop strategic plans and address long-range issues such as

which industries to compete in, how to capture market share, and what to do with

profits. These managers design and approve the firm’s basic policies and represent the

firm to other organizations. They also define the company’s values and ethics and thus

set the tone for employee standards of behavior. 

Middle Management

Middle managers have titles like department head, director, and chief supervisor. They

are links between the top managers and the first-line managers and have one or two

levels below them. Middle managers receive broad strategic plans from top managers

and turn them into operational blueprints with specific objectives and programs for first-

line managers.

AFPSLAI Middle Management includes the following: Senior Vice President for

Operations Department, Senior Vice President for Comptrollership Department, Senior

Vice President for Treasury Department and Senior Vice President for Administration

Department.

Operation Department

This department generates loans, capital and membership for the Association. It attends

to the transactions of members particularly with respect to application for membership,

processing, releasing of loans and servicing deposits and withdrawal transactions. It

likewise brings AFPSLAI’s services closer to the members’ doorsteps particularly for

region-based clients.

Comptrollership Department
If the Association is to concentrate more on savings ad lending transaction and does not

keep tract of the recording and monitoring of financial transactions, its operations will be

in great shambles. The Comptrollership Department manages the members’ individual

loans, capital and savings account data as well as records/documents financial

transactions in accordance with generally accepted accounting principles and

prescribed policies by government institutions.

Treasury Department

The efficiency of any business activity demands that funds must be managed well and

cash flow and cash requirements must be properly handled. Loan payments of the

members must also be collected on time to sustain operations. AFPSLAI cannot extend

loans to the members if Treasury Department will not do its job – that of managing and

directing funds to be used for operations, monitoring of billing/rebilling and collecting

loan remittances and managing real property investments.

Administration Department

Administration Department recruits personnel, trains and develops employees,

administers compensation and benefits and make sure that labor management relations

are preserved. It upkeeps and maintains offices buildings and facilities, ensures

adequate supply of required goods and items and protects and safeguards AFPSLAI

clients and employees as well all physical and financial assets from harmful elements.
Lower Management

First-line managers are the entry level of management, the individuals “on the line” and

in the closest contact with the workers. They are directly responsible for making sure

that organizational objectives and plans are implemented effectively.

AFPSLAI lower management are composed of different general heads of each

department and under general heads are heads of every section under one specified

department. Moreover, it also includes the different managers of every branches which

is also categorized by location.

Other Offices

AFPSLAI has other independent staff offices. The Office of the Board Secretaries (OBS)

attends to all secretarial and administrative requirements of the Office of the Corporate

Secretary and the Board of Trustees.

Under the Office of the Board of Trustees are the Internal Audit Division (IAD) that

evaluates and recommends possible improvements on existing internal control and

governance systems, Corporate Compliance Office (CCO) which is responsible for

coordinating, monitoring and facilitating compliance with existing laws and regulations

and Risk Management Office which manages strategic, financial, operational and

regulatory risk exposures to a level acceptable to Association and stakeholders,

Under the Office of the President and CEO are the Corporate Affairs Division (CAD) that

oversees preparation and proper execution of Member Relations, Corporate

Communication and CSR programs, the Corporate Planning Division (CORPLAN) that

evaluates the financial and operational performance of AFPSLAI and its subsidiaries on

a periodic basis, and the Information Security Office (ISO) that maintains information

security roles, responsibilities and accountabilities in the organization.

Under the Office of the EVP & GM are the Legal Services Division (LSD) that handles

litigation activities related to the filing, prosecution and defense of case, and Information

Systems Division (ISD) that handles daily batch posting of all AFPSLAI transactions,

installs, controls and maintains all computers and other computer-related resources of

AFPSLAI.

In summary, AFPSLAI’s highest decision making body is the Board of Trustees elected

by the general membership every year. The day-to-day operations of AFPSLAI are

handled by the President and Chief Executive Office who is assisted by the Executive

Vice President and General Manager to whom the Senior Vice Presidents of the four

departments, namely Operations, Comptrollership, Treasury and Administration report.

Under the departments are divisions, offices, branches, units and sections each having

its own specialization. There are also staff offices reporting to either the Chairman of the

Board, President and CEO and EVP/GM, like the Office of the Board Secretariat,

Corporate Compliance Office, Risk Management Office, Internal Audit Division, Legal

Services Division and Information Systems Division.

LEADING

Leading is the third element of management, one of the management core functions. It

is the process of influencing people so that they contribute to organizational and group

goals. Leading to be effective requires the art of creating organizational climate that will

enable both the employees and the organization achieve their respective objectives.

The process of leading requires effective performance and application of the following

sub-functions: 1. Delegate 2. Motivate 3. Communicate

Delegation

AFPSLAI practices delegation especially when the middle managements are away or

doing outside office transactions. Delegation of the function is being put into writing.

This includes the function that will be added to his primary function, the date of

effectivity and when it ends, reason of delegation and the acceptance of the delegated

function. Once this writing is confirmed and signed, this will be disseminated in the

different offices.

In addition, employees gain experience and skills through job rotation. This

management technique promotes flexibility, employee engagement and job satisfaction.

By taking on new responsibilities for a period of time, rank and file employees are

exposed to different experiences and wider variety of skills and work within their unit.
Motivate

Perceived as the most important resource, employees play a very important role in

achieving the mission and vision of an organization. The sustained success of an

institution is greatly dependent on the energy, talent, integrity, knowledge, skills and

loyalty of its work force. Thus AFPSLAI motivates its employees to increase

engagement, productivity, morale and retention. Aside from competitive compensation

benefits AFPSLAI provides different approaches in improving the well-being of its

employees:

A Culture of Health Awareness

AFPSLAI is very much aware that an employee with a healthy body and mind is likely to

be more productive at work. Thus, medical, dental and optical benefits are provided to

employees to protect and support their well-being. These include annual physical

examination and medicine reimbursement. AFPSLAI also organizes various forums and

health promotion programs to boost physical and mental energy and improve

productivity levels of its employees. Among the activities offered are blood-letting

activities, aero-dance sessions, highly-intensify interval training (HIIT) workouts and

wellness fairs.

A Culture of Learning

Continues learning is critical to business success. Thus, AFPSLAI invests in the

development of the skills and competencies to help workforce to not only be competent
in their work, but also excel in it. As professional development helps employees reach

their full potential, it also strengthen the backbone of the Association.

AFPSLAI also sent representatives to conferences and seminars of professional

organization such as Institute of Corporate Directors (ICD), Philippine Institute of

Certified Public Accountant (PICPA), People Management Association of the

Philippines (PMAP) and Institute of Internal Auditors Philippines Inc. These colloquia

allow employees to gain insights of the changing trends and current best practices and

build up relationship with other partners in the business industry.

A Culture of Growth

It is important to get the right people in the right roles that match their competencies.

Career paths and ladders cam be effective tools to foster employee development and

ensure organizational growth and productivity.

In June 2020, the Harrison Assessment Tool was used to better understand and

evaluate existing and prospective employees based on pre-determined factors (i.e.

emotional intelligence, engagement attitude and etc.) As the Association prepares for

the future, a pool of potential talents was identified to fill key positions in the company.

Work Climate Survey is conducted to all employees to determine employee

engagement, identify critical areas of concern and study employee perceptions of

AFPSLAI’s working environment. Results of the survey are used to facilitate

organizational change and improve current personnel policies and programs.

A Culture of Excellence

AFPSLAI Acknowledges employee achievements with rewards to create an office

atmosphere focused on success and to empower employees to keep up the good work.

Employee recognition has long been a cornerstone of AFPSLAI Management. The

Association believes that employees who feel appreciated, feel valued. Thus, AFPSLAI

acknowledges the contributions and accomplishments of individual and teams with

recognition programs to increase employee engagement and encourage high

performance.

Excellence Awards are conferred during Anniversary Celebration to employees whose

exemplary performances for the year invaluably contributed to the overall success of the

organization. Commendations are also given to individuals and committees for showing

capability and willingness to go beyond their normal duties and responsibilities.

Moreover, long service awards are bestowed to employees who have committed their

loyalty and dedication to AFPSLAI for at least five (5) years.

A Culture of Camaraderie

AFPSLAI holds fun and socialization activities to engage employees and to build

positive environment. Every year, the Association organizes Sportsfest, Anniversary

Celebrations, Valentine’s Specials, Halloween Trick or Treat, Christmas Party and

monthly “Salo-Salo” programs. In addition, Summer Outings are held per office or

division once a year to provide a breather from work and for the personnel under a

given unit to spend quality time with each other.

Communicate

Open communication is a vital part of every organization. It inspires excellence

performance, improves employee morale, and creates a warmer corporate culture.

AFPSLAI promotes transparency thus information (i.e. corporate directions, new

policies, customer feedback and etc.) and employee feedback are shared through

channels such as forums, surveys and staff meetings. Employees are also encouraged

to discuss their concerns with their immediate superiors through regular unit meeting.