CHAPTER 3: MANAGEMENT INFORMATION

The management study determines what form of business ownership the proponents will

consider in their new venture. This part also identifies who will manage the business, what are

the required duties, responsibilities and functions of each position.

A. Form of business organization

The business opts to be a sole proprietorship and the proponents decided to put it under

the same name of our business. A sole proprietorship, also known as the sole trader or simply

a proprietorship, is a type of business entity that is owned and run by one individual and in

which there is no legal distinction between the owner and the business.

We will hire one resident assistant who will supervise the dormitory, two security guards

for safety purposes of the occupants, one utility man who will clean the area, and an

accountant for managing the financial statements. The staffs will have a permanent status and

will be paid in a monthly basis. The building in the land where the business will be put up

will undergo a major renovation to achieve the expected appearance of the DormiPod. The

business is expected to open and starts accommodating occupants in January 2015.

Proponents Capital Distribution

Schedule____

Proponents Contribution

Noemi Beraquet P 300, 000

Ruth Gavilan P 300, 000

Monica Opeña P 300, 000

Ma. Theresa Tañegra P 300, 000

Justine Aliah Sy P 1, 800, 000

Total P 3, 000, 000

The proponents decide to contribute P300, 000 each and Ms. Sy tender another P1, 500, 000

so the total would be P3, 000, 000 peso in cash as a starting capital to start the business.

Other Contribution

 Justine Sy offers her parcel of land to be used as the site where the business will be

build. A building was already constructed in the site and we decided to just renovate

the place to minimize costs.

B. Staffing Requirements

People are the most important productive resources in any organization. It is the people

who plan, organize, decide and supervise the business. The duties and responsibilities, and

qualifications of each officer and personnel are discussed in detail.

 Job Qualification

 Accounting Clerk

 Competency in Microsoft applications including Word, Excel and Outlook.

Organizational, verbal and written communication skills a must.

 Female

 21-29 years old

 At least two years in experience

 Graduate in Bachelor of Science in Accountancy, or any Finance Course

 Resident assistant

 30-40 years old

 Female

 Physically fit

 Pleasing personality

 With experience in working as a resident assistant in dormitory

 Utility Women

 Female, 20-30 years old

 Preferably a high school graduate

 Physically fit

 Can do household chores

 Security guard

 Male, 25-30 years old

 Preferably a high school graduate

 Must be punctual, alert, courteous and trustworthy

 Job Description

 Accounting clerk

 To calculate a production costs that includes raw materials, direct labor and

manufacturing overhead. This information relates to the allocation of costs to

goods or services produced by the business. Verify the accuracy of accounting

documents or records. Update and maintain accounting journals, ledgers and other

records detailing financial business transactions. Enters data into computer system

using defined computer programs

 Resident Assistant

 Responsible for supervising the dormitory’s properties and taking care of the

occupants.

 Utility Women

 The utility man is the one responsible for maintaining cleanliness within the

dormitory’s vicinity. He also maintains a conducive place for living and a sanitary

environment from time to time.

 Security Guard

 The Security maintains peace and order inside the dormitory and within the

dormitory’s vicinity. He guards and secures the safety of all the assets of the

business. He records all the names of the persons who enter the company’s

premises.

C. Table of Organization

The Organizational Structure of DormiPod is illustrated through an organizational

chart shown in Exhibit____. It is composed of an owner, accounting clerk, resident

assistant, utility women and a security guard – these are the mandatory officers of a

dormitory to make sure that they are safe and secure.

Exhibit ____

Owner

Accounting
Clerk

Resident Security
Assistant Utility
Guard (2)

PAY-OUT PERIOD

Employees’ salaries would have two cut-off periods—on the 15th and 30th of the month.

The salary for the first cut-off would be paid in the 20th of the month and the other would be paid

on the 5th of the next month.

Employees Benefits

The following are the working benefits provided by our company:

1. Social Security Systems (SSS) - is a form of social insurance to protect individuals from

financial hardships. Situations that affect a person's ability to provide for his family

include disability, death and retirement.

  Monthly pensions which includes the dependents’ pensions, and retirement benefits

 Death benefits consisting of monthly pensions to the primary beneficiaries, and

dependent’s pensions to the dependents

 Funeral benefits

 Sickness benefits

 Maternity benefit is equivalent to 100 per cent of the member’s average daily salary

credit multiplied by 60 days for normal delivery or miscarriage, 78 days for

caesarean section delivery. This shall be paid for the first four deliveries.

 Paternity benefits of seven (7) days with full pay to all married male employees in

the private and public sectors for the first four deliveries of the legitimate spouse.

2. PAG–IBIG Fund – It is required that an employee shall contribute to the PAG-IBIG

one or two percent of his compensation with the maximum contribution of P 5,000.

The company is also required to contribute to the fund matching the employee’s

contribution. The accumulated contribution plus the interest shall be given to the

employee upon his retirement or upon reaching the age of sixty-five (65). Members of

the PAG-IBIG can avail themselves of a housing loan based on their income level.

3. Thirteen Month Pay - As provided by law, all employers are required to pay their

employees receiving a salary of more than P 1,000 monthly, regardless of the nature of

employment and basic monthly salary, a 13th month pay not later than December 24 of

every year. For the bonus of the employees working in the company for less than a year,

their total salary received would be divided by 12.

Wages of Workers/Employees

Schedule___

EMPLOYEES MONTHLY WAGES

Accounting Clerk P

Resident Assistant P 6, 000

Security Guard (2) P 10, 000

Utility Women P 4, 000

Total P

Table of SSS & PHILHEALT Contribution downloaded from the internet

Monthly Contribution of SSS and Philhealth

Schedule____

EMPLOYEES WAGES SSS PAG-IBIG PHILHEALTH

Accounting Clerk P 10,000.00(annual) P--- P--- P---

Resident Assistant P 6, 000.00 P550.00 P200.00 P200.00

Security Guard (2) P 10, 000.00 P1,100.00 P200.00 P250.00

Utility Women P 4, 000.00 P440.00 P200.00 P200.00

Total P20,000.00 P2,090.00 P600.00 P650.00

Witholding Taxes

Schedule____

EMPLOYEEES MONTHLY WITHOLDING TAX

Total P_______ Per month

The total monthly witholding tax is amounted to P____________. The witholding tax in

a year that the employer needs to pay is P___________. Paying witholding taxes is one of the

responsibilities of the employer to the government.

Legal Requirements

Before the proposed business conduct, certain legal requirements and legal

documents must be obtained and secured. This would facilitate the business affairs in

terms of business permits, protection and benefits. The following are the requirements

for registration and licensing:

1. Department of Trade and Industry ( DTI )

2. City or Municipality Permit

a) Mechanical Permit

b) Electrical Permit
 c) Sanitary and Plumbing Permit

d) Zoning Compliance

3. Bureau of Internal Revenue (BIR)

4. Registration with SSS, PhilHealth, PAG-IBIG, Home Development Mutual Fund

(HDMF)

D. Project timetable

Below is the project time table of the activities that must be done before opening

the proposed business. It indicates how long will be the renovations of the building

and the completion of the legal requirements that is needed for the business to

operate.
Table_______ Project Time Table

PRE - OPERATING

ACTIVITIES JUL AUG SEPT OCT NOV DEC JAN

Conducted Feasibility Study

Market Survey
Site Selection
File Legal and Business
requirements
Hiring of staff
Search for contractor
Purchase of tools and
materials for the construction
of the site START OF CONST.
Purchase of Furniture and
fixtures
Start of operation
Pre-opening
Actual operation

The feasibility study was conducted on July up to August 2014. Market survey,

site selection, and file of legal and business requirements will also be done on the month

of August. Hiring staff which are the interior designer, foreman, and workers, search for

suppliers, purchase of tools and materials, and furniture and fixtures will be on

September. Construction starts on the month of mid-September to November. On the

month of December, everything must be fully polished. A pre-opening will be done and

on January of next year will be the start of the actual operation.

NOTE: PROJECT TIME TABLE- CONSTRUCTION OF SITE IS ONY FOR 2

MONTHS???

PLEASE POLISH THE PROJECT TIMETABLE

Dorm rules and Policies

The following rules are made to ensure safety and peace inside the DormiPod

1. Maintain cleanliness at all times.

2. Curfew hours: occupants should be in the DormiPod before and not later than 10PM.

3.