CHAPTER 2:

ORGANIZATION
AND MANAGEMENT
STRUCTURE

17
Introduction

Effective management is one of the most important factors in success and

fulfilling the organization's goals. Every action should be done in a methodical,
step-by-step manner to ensure that everything is well-organized and proceeds as
intended. When this unfolds, everyone using the workspace enjoys a peaceful
working atmosphere. Productivity and excitement for the work of the personnel
increase as a result. Additionally, it is crucial for business to leverage and
maximize the resources to formulate for finer strategies and be able to adapt the
primary functions of management such as planning, organizing, staffing,
directing, and controlling. In this chapter, the proponents will focus and discuss
all the implementations and operations in managing a business. This comprises
the company's goals and objectives, the chosen type of management theory, the
article of Co-Partnership, the ownership structure, the organizational structure,
the rights and responsibilities of partners, job terminology in personnel
management, hours of work, weekly rest periods, holidays with pay, the hiring
procedure, the legal needs of the business and its employees, termination and
retirement as well as the manpower, salaries, benefits and capitalization.

2.1 Management Theory

The proponents of PAVO Repellent Company chose Theory Z as the type

of organizational management. A sense of partnership or family within the
organization is built on a foundation of trust between the general managers and
employees. This asserts that, by giving management a humanistic edge, it
improves the overall quality performance of the organization as a whole. All
workforce must share responsibility and management participation to work
effectively and efficiently for the growth of the company. The managers vested
full blast support for employees in order to actualize the mission and vision of the
company. Employees are given a sense of organizational ownership. This
18
approach drives and motivates them to continuously generate adequate high-
quality work to reach common goal of gaining success across the market.

Advantages of Theory Z
● The open organizational structure encourages collaboration and
teamwork.
● Involving employees in decision-making fosters a sense of accountability,
promoting commitment to decisions and hastening their implementation.
● The paternalistic leadership encourages cooperation and positive
interpersonal relationships by promoting a family atmosphere within the
workplace.
● Conflicts are reduced and employees work together to accomplish
organizational goals when there is trust and openness among workers,
work groups, management, and the union.
● A shared cultural trait encourages collaboration and brotherhood.
Excellent workplace relationships are also fostered.
● Giving the right management support, employees can be trusted to do
their job to their utmost ability and look after their own and others
wellbeing.

Disadvantages of Theory Z
● Committing to a job for the rest of one's life can be challenging for both
employers and employees.
● Businesses that operate in social, cultural, and economic contexts where
those work practices are not the norm may not be a good fit for slow
promotions and group decision-making.
● Involving employees in decision-making is quite tough. Managers might
not appreciate taking part because it might hurt their ego and freedom of
action.
19
 ● Employees may be reluctant to participate because of concern about
criticism and a lack of drive. If they don't comprehend the problems and
take the initiative, they won't be able to offer much. The decision-making
process is also slowed down by everyone's involvement and participation.
● The organization without structure is suggested by theory Z. However,
without structure, there may be anarchy in the workplace since nobody will
know who is in charge and responsible of what.

2.2 Types of Business Organization

The proponents of this study agreed that the form of business ownership
will be a General Partnership whereas each proponent agrees to have an equal
share on the assets and profits of the company and be equally liable for the legal
obligations of the company as well.

Rights and Responsibilities of General Partners

A. Rights
1. The General Partner is the only person who can run the Partnership's
affairs and has the power to do anything that's necessary or appropriate to
accomplish the Partnership's goals. The General Partner will give the
project the amount of time and attention it deems necessary or
appropriate in its sole discretion
2. Each partner in a partnership is legally obligated to act in the partnership's
best interest and that of the other partners. For partnership obligations,
there is also the legal requirement of individual personal liability. All
contracts signed by other partners are the responsibility of general
partners. They might be held personally accountable for other partners'
20
 trust breaches or fraud.
3. Any and all decisions pertaining to the Partnership's operations will be
made by the General Partner, who will have complete, exclusive, and
unrestricted authority and discretion. In addition, the Act and any other
applicable law or this Agreement grant the General Partner all of the rights
and powers of a general partner, and any action taken by the General
Partner is binding on the Partnership. The General Partner is responsible
for carrying out the Partnership's business to the best of its ability and
managing and controlling the Partnership's affairs.

B. Responsibilities
1. The responsibilities of good faith and fair dealing arise when partners
begin negotiations to form a partnership. These responsibilities extend to
the business's dissolution and complete settlement of its affairs throughout
the company's lifespan.
2. Partners are obligated to act honestly, be fair, and act in good faith toward
one another. Maintaining this obligation is essential to everything that
partners do. Partners must continue to act in good faith in all business
dealings, even if their relationship becomes strained.
3. Partner loyalty requires them to prioritize the company's success and
interests over their own. Partners must refrain from self-dealing and
conflicts of interest.
4. Partners are required to manage and direct the company in a reasonable
prudent manner under the duty of care. A partnership, for instance, ought
to keep detailed and accurate records for the company. As a result, proper
accounting and recordkeeping would be the responsibility of a reasonably
prudent partner.
5. Partners are expected to adhere to a duty of candor or disclosure. For
their partners to make informed decisions, they must fully disclose the
potential benefits and well-known risks of a particular action.
21
Advantages and Disadvantage of Partnership

Advantages of Partnership
● Building a business of BIOPEL Repellent makes a great impact as a tool
to help individuals regarding their insect or pest problems. It is also a great
and easy-to-establish kind of business for every partner that needs to start
at a low cost.
● An opportunity can also contribute to income splitting, an advantage of
particular importance due to the resultant tax savings made by the
organization.

Disadvantages of Partnership
● Having a partnership with a co-repellent can cause disagreements and
friction that can lead to mutual misunderstanding.
● If someone or an organization leave or suddenly changes their decision,
the most affected will be the main organization that will shoulder all the
assets that the partners left, and this will literally cost a lot.

Article of Co-Partnership

Articles of Co-Partnership of PAVO Repellent Company

KNOW ALL MEN BY THESE PRESENTS:

That we, Rhain Ivy Manulid, Christine Mae Medina, Perly Melo, Crispel
Nucup, Aidan Resurreccion, and Karla Izzamae Tapnio the undersigned
22
partners, all of legal age, residents and citizens of the Philippines, have on this
day voluntarily associated ourselves together for the purpose of forming a
general partnership under the following terms and conditions and subject to
existing and applicable laws of the Republic of the Philippines:

AND WE HEREBY CERTIFY:

ARTICLE I. Partnership Name: That the name of this

partnership shall be PAVO Repellent Company and shall transact business
under the said company name.

ARTICLE II. Business Purpose: That the purpose/s for which this
partnership is formed is/are: To be one of the forefront innovators in
manufacturing of organic products and to ensure long-term market stability in the
local and global business arena, at the same time, contributing to economic
progress.

ARTICLE III. Principal Place of Business: That the principal place of

business of this partnership shall be located at: Purok 8, Bacolor Pampanga.

ARTICLE IV. Term of Existence: That this partnership shall have a term
of 3 to 5 years from and after the original recording of its Articles of Partnership
by the Securities and Exchange Commission.

ARTICLE V. Partners’ Circumstances: That the names, nationalities

and complete residence addresses of the partners are as follows:

Name Nationality Complete

Residence Address

23
 Manulid, Rhain Ivy G. Filipino Vistarica,
Subdivision, Dolores
City of San Fernando
Pampanga

Medina, Christine Mae P. Filipino Purok 1, San

Nicolas,
Floridablanca,
Pampanga

Melo, Perly S. Filipino Purok #2, Pulung

Santol, Porac,
Pampanga

Nucup, Crispel P. Filipino 4th Street Parian,

Mexico, Pampanga

Resurreccion, Aidan B. Filipino 3 Manggahan St.

San Carlos, Mexico,
Pampanga

Tapnio, Karla Izzamae A. Filipino Purok #7, San Juan

City of San Fernando
Pampanga

ARTICLE VI. Capital Contributions: That the capital of this Partnership

shall be the amount of One Million and Five Hundred Thousand (P1, 500,000),
Philippine Currency, contributed in cash by the partners, as follows:

Name Amount Contributed

Manulid, Rhain Ivy G. P250,000

24
 Medina, Christine Mae P. P250,000
Melo, Perly S. P250,000
Nucup, Crispel P. P250,000
Resurreccion, Aidan B. P250,000
Tapnio, Karla Izzamae A. P250,000

That no transfer of interest which will reduce the ownership of Filipino

citizens to less than the required percentage of capital as provided by existing
laws shall be allowed or permitted to be recorded in the proper books of the
partnership.

ARTICLE VII. Sharing Ratios: That the profits and losses of this
partnership shall be divided and distributed proportionately on the ratio of the
capital contribution of each partner.

Name Sharing Ratios

Manulid, Rhain Ivy G. 16.67%

Medina, Christine Mae P. 16.67%

Melo, Perly S. 16.67%

Nucup, Crispel P. 16.67%

Resurreccion, Aidan B. 16.67%

Tapnio, Karla Izzamae A. 16.67%

ARTICLE IX. Management: That this partnership shall be under the

General Manager, who shall be in charge of the management of the affairs of the
company. He shall have the power to use the partnership name and in otherwise
25
performing such acts as are necessary and expedient in the management of the
firm and to carry out its lawful purposes.

ARTICLE X. Undertaking to Change Name: That the partners undertake

to change the name of this partnership, as herein provided or as amended
thereafter, immediately upon receipt of notice or directive from the Securities and
Exchange Commission that another corporation, partnership or person has
acquired a prior right to the use of that name or that the name has been declared
as misleading, deceptive, confusingly similar to a registered name, or contrary to
public morals, good customs or public policy.

IN WITNESS WHEREOF, we have hereunto affixed our signatures this 10th day
of October, 2022 at 9:00 a.m.

Manulid, Rhain Ivy G. Medina, Christine Mae P.

Melo, Perly S. Nucup, Crispel T.

Resurreccion, Aidan B. Tapnio, Karla Izzamae A.

ACKNOWLEDGEMENT
26
REPUBLIC OF THE PHILIPPINES ____________________________) S.S.
BEFORE ME, a Notary Public, for and in _________________, this 10th day
of October, 2022, personally appeared the following persons:

Name TIN/ID/Passport No. Date & Place

Issued

Manulid, Rhain Ivy G. N/A Pampanga

Medina, Christine Mae P. N/A Pampanga

Melo, Perly S. N/A Pampanga

Nucup, Crispel P. N/A Pampanga

Resurreccion, Aidan B. N/A Pampanga

Tapnio, Karla Izzamae A. N/A Pampanga

known to me and to me known to be the same persons who executed the

foregoing Articles of Partnership constituting 4 pages, including this page where
the acknowledgement is written, and they acknowledged to me that the same is
their free and voluntary act and deed.

WITNESS MY HAND AND SEAL on the date and place above written.

NOTARY PUBLIC

Doc. No. ______;

Book No. ______;
27
 series of 20 ______.

2.3 Organizational Structure/Chart

Line Type

Organizational Structure of PAVO Repellent Company

In a line organizational system, power is distributed horizontally. It follows

that each level of management above it has greater authority. There is frequently

28
one person in charge at the top, with several managers reporting to them. This
style of organizational structure is frequently employed in businesses when there
is a requirement for strict control over operations and a defined hierarchy. Military
organizations and businesses with a conventional, bureaucratic structure
frequently exhibit it. The line-type organizational chart illustrates how power is
distributed in a line organization.

Advantage of Line Type Organization

● It also enables prompt decision-making and effective coordination follows
the scalar principle of structuring things. Additionally, it encourages
command unity. The formal chain of command includes personnel who
are subject-matter experts in particular fields. The tendency for line
organizations to be somewhat effective and decisive in their decision-
making and implementation is another advantage. Decisions may be
made rapidly and effectively because decision-making power is
centralized at the top. Because of this, corporate pivots and shifts may be
able to happen swiftly. Furthermore, codified rules and practices inside a
line organization help with this coordination by ensuring that everyone is
on the same page and collaborating to achieve common objectives.

Disadvantage of Line Type Organization

● Their potential for being unduly dependent on-line officials is one
drawback. This dependence may cause problems if important employees
are not available or if there is a chain of command difficulty. Additionally,
there may be abuse of power because issues in a line organization often
go right to the top. Employees may feel that their opinions are not valued
or that they are not involved in decision-making as a result of this abuse of
power. Line organizations can also be rigid to some kinds of change,
which is a problem. A line organization's established norms and processes
can make it challenging to implement changes.
29
2.4 Job Terminologies in Personnel Management

General Manager

Job Descriptions:
● Developing key performance goals and managing the performance of
staff.
● Ensuring that departments or units deliver quality offerings to clients.
● Improving internal process for better productivity.
● Overseeing large projects and interpreting performance reports.
● Developing new solutions to meet client needs.

Job Specifications:
● Previous working experience as a General Manager for 2-3 years.
● A proven track record of successfully leading and motivating diverse team.
● Gain plenty experience across the management of people and process
within an organization.
● MA in Business Administration or similar relevant field.
● A proven track record of successfully leading and motivating diverse
teams.

Accountant (On call)

Job Descriptions:
● Complying with all company, local, state, and federal accounting and
financial regulations.
● Compiling, analyzing, and reporting financial data.
● Creating periodic reports, such as balance sheets, profit & loss
statements, etc.
30
 ● Presenting data to managers, investors, and other entities.
● Maintaining accurate financial records.

Job Specifications:
● Bachelor’s degree in accounting (CPA) or related field.
● More education or experience may be preferred.
● Special licenses or certification may be required.
● Strong analytical, communication, and computer skills.
● Understanding of mathematics and accounting and financial processes.

Production Supervisor

Job Descriptions:
● Creating a production schedule.
● Training new employees.
● Scheduling regular maintenance for equipment.
● Discussing budget expectations with clients.
● Purchasing the required materials.

Job Specifications:
● A degree in business management would be advantageous.
● Industry-related experience.
● Excellent organizational and time management skills. \
● Ability to solve problems quickly and efficiently.
● Excellent verbal and written communication skills.

Sales and Marketing Supervisor

Job Descriptions:
● Contributing to the development of marketing strategies.
31
 ● Conducting market research on rival products.
● Designing and implementing marketing plans for company products.
● Coordinating with media representatives and sponsors.
● Working with the sales team to develop targeted sales strategies.

Job Specifications:
● Bachelor’s degree in marketing, business, or related field.
● Proven work experience as a sales and marketing executive.
● Knowledge of modern marketing techniques.
● High-level communication and networking skills.
● A passion for sales.
● Understanding of commercial trends and marketing strategies.

Sales and Marketing Representative

Job Descriptions:
● Helping determine pricing schedules for quotes, promotions, and
negotiations.
● Giving sales presentations to a range of prospective clients.
● Collaborates with sales and product teams to develop branding
messages.
● Collects and compiles customer feedback in an easily reviewed and
understood format for review by company management and leadership.
● Develops and distributes materials related to sales, training, and
marketing.

Job Specification:
● Understanding of the sales process and dynamics.
● Able to work comfortably in a fast-paced environment.
● One to three years of related experience in business, promotional sales,
32
 customer service, or related field preferred.
● Strong analytical and problem-solving skills
● Superb interpersonal skills, including the ability to quickly build rapport
with both customers and suppliers.

Bookkeeper

Job Descriptions:
● Recording day-to-day financial transactions and completing the posting
process.
● Reconciling sales taxes, payroll taxes, 401k, and bank accounts at the
end of each month.
● Monitoring financial transactions and reports.
● Processing accounts receivable and payable.
● Processing checks.

Job Specifications:
● Associate's degree in accounting or business administration. Excellent
knowledge of general accounting principles.
● High school diploma.
● Knowledge of bookkeeping software.
● At least 2 years of bookkeeping experience, preferably within a business-
services environment.
● Excellent communication skills, both verbal and written.

Production Worker

Job Descriptions:
● Following health and safety standards.
33
 ● Maintaining a clean workstation and production floor.
● Assembling products and parts.
● Following production guidelines and specifications.
● Finalizing and packaging products for shipment.

Job Specifications:
● High school diploma/GED.
● Previous experience working in a factory is beneficial.
● Experience operating manufacturing machinery.
● Able to work as part of a team.
● Good communication skills.

Driver

Job Description:
● Transferring company employees as well as products, safely.
● Maintaining accurate time records for arrival and departure of company
vehicle.
● Performing consistently cleaning and maintaining company vehicle in
order to keep them in good condition.

Job Specification:
● Expertise as a Driver.
● A perfect driving history.
● Valid driver’s license.
● Good general health condition.
● Knowledge about roads.
● At least High school graduate.

2.5 Personnel/Administrative
34
2.5.1. Conditions of Employment

2.5.1.1. Hours of work

An employee's usual workday is limited to eight hours by Article 83 of the
Labor Code. Workdays begin at nine in the morning and end at six. This does not
include the one (1) hour lunch break. The preservation of employee welfare and
decrease in unemployment provided by this article was explained by the
Supreme Court. It must be underlined that working longer than eight hours is still
possible as long as an agreement between the company and employee allows
for it and overtime compensation is paid accordingly. An employee who works
longer than eight (8) hours is entitled to supplemental remuneration that is at
least 25% of his usual income in addition.

Working Schedule

Position Hours Days Time IN/OUT Rest Day

General 8 hours 5 days 9:00am – Weekend
Manager 6:00 pm s
Accountant ------------- ----- --- -------
Production 8 hours 5 days 9:00am – Weekend
Head 6:00 pm s
Sales 8 hours 5 days 9:00am – Weekend
Marketing 6:00 pm s
and
Coordinator
Bookkeeper 8 hours 5 days 9:00am – Weekend
6:00 pm s
Production 8 hours + 5 days 9:00am – Weekend
35
 Worker (1) overtime (1-2 6:00 pm s
hours) if needed
Production 8 hours + 5 days 9:00am – Weekend
Worker (2) overtime (1-2 6:00 pm s
hours) if needed
Driver 8 hours + 5 days 9:00am –6:00 Weekend
overtime (1-2 pm s
hours) if needed

2.5.1.2. Night Shift Differential

There is no night shift at the company, and all production processes take
place during the day.

2.5.1.3. Weekly Rest Periods

The working hours of all the employees of the company from Monday to
Friday starts at 9:00 am and ends at 6:00 pm. All employees have a common
rest day which is every Saturday and Sunday.

2.5.1.4. Holidays with Pay

Calendar 2022

Legal/Regular Holiday

Name of Holiday Date

New Year’s Day January 1, 2023 – Sunday
36
 Maundy Thursday April 6, 2023– Thursday
Good Friday April 7, 2023 – Friday
Araw ng Kagitingan April 9, 2023 - Sunday
Eid'l Fitr April 21 -2023 - Friday
Labor Day May 1, 2023 – Monday
Independence Day June 12, 2023 - Monday
Eid’l Adha June 28, 29, 2023 -
Wednesday, Thursday
National Heroes Day August 28, 2023 – Monday
Bonifacio Day November 30, 2023 - Thursday
Christmas Day December 25, 2023 - Monday
Rizal Day December 30, 2023 - Saturday

A. If unable to attend work, employee shall receive a 100% pay of his/her rate.
(Daily rate X 100%)
P460 x 100% = P460

B. If present at work, employee shall receive a 200% pay of his/her rate.

(Daily rate X 200%)
P460 X 200% = P920

Special Non-working Holiday

Name of Holiday Date

Chinese New Year January 22, 2023 - Sunday

37
 Edsa Revolution Anniversary February 24, 2023 – Friday
Black Saturday April 8, 2023– Saturday
Ninoy Aquino Day August 21, 2023 - Monday
All Saints Day November 1, 2023 -
Wednesday
Feast of Immaculate Conception Mary December 8, 2023 - Friday
Last Day of the Year December 31, 2023 - Sunday

Local Holiday

Name of Holiday Date

Jose Abad Santos Day May 7, 2023 - Sunday
31st Anniversary of the eruption of Mt. Monday June 15, 2023 -
Pinatubo Thursday
Pampanga Day December 11, 2023 - Monday

If present at work, employee shall receive an additional 30% pay of his/her rate.
(Daily rate X 130%)
P460 X 130% = 598

2.5.1.5. Service Incentive Leaves

Sick Leave
● An employee will be required to submit a written request for sick leave to
the manager. Once approved, an employee will receive a medical
certificate from the doctor or health care professional that shows that an
employee is unable to work due to an illness. An employee will also be

38
 required to fill in a travel form for employees. The number of days for
which an employee is entitled to take sick leave is based on the employee
contract or organizations policy. The PAVO Repellent Company granted
the employee a twelve-day sick leave if the employee has worked for the
company for at least two years, on the condition that the excuse of the
employee is proven. The main benefit of sick leave is the ability to take
care of oneself or a loved one. Unused sick leave is convertible into cash
and the employee will be able to receive those compensation by the end
of the year.

Vacation Leave
● One important rule for crediting leave on the condition that the given
probation period has already ended, provided that a regular organization,
the company gives a three- to six-month trial period to determine whether
the employee is performing well in the first quarter. Only five days’
vacation leave is provided for the employees here in the Philippines and it
is named as Service Incentive Leave (SIL). This leave will only be granted
if the employee has worked and served the company for at least one year
including the three-to six-months trial period. Vacation leave applies to
those employees asked for consent a week before filing the said leave, for
the company to become ready for the following works and tasks with the
absence of the employee who is granted for the vacation leave.

Maternity Leave
● Maternity leave is provided to all female employees of the company who
are entitled to give birth whether with a normal or caesarean delivery. An
employee must make a request of leave before the expected date of
giving birth. Employees have 15 weeks leave before and after giving birth
to take
39
 rest and to take care of their new born child with full pay.

Paternity Leave
● Paternity leave is for the father of the family to spend time with their new
born baby and to fulfill its obligation as a father. As stated in Republic Act
8187, employee has the right to file a leave of seven days with fully pay
whether a public or private employee.

2.5.1.6. Service Charges

The company didn’t take any service charges for all parts of the
organization.

2.5.1.7. Wages (Tabular Form)

Position Rate per Day Number of Days Rate per

(Philippine per Month Month
Peso) (Philippin
e Peso)
General Manager ----- 22 P25,000
Accountant ----- ----- P5,000
Production P800 22 P17,600
Supervisor
Sales and P800 22 P17,600
Marketing
Supervisor
Sales and P700 22 P15,400
40
 Marketing
Representative
Bookkeeper P650 22 P14,300
Production Worker P460 22 P10,120
(1)
Production Worker P460 22 P10,120
(2)
Delivery Driver P460 22 P10,120

Salary Deduction

Position Monthly SSS Phil PAG- Monthly

Gross Health IBIG Net
Salary Salary

General P25,000 P900 P500 P100 P23,500

Manager
Accountant P5,000 P5,000
Production P17,600 787.50 P352 P100 P16,360.5
Supervisor 0
Sales and P17,600 787.50 P352 P100 P16,360.5
Marketing 0
Supervisor
Sales and P15,400 P697.5 P308 P100 P14,361.5
Marketing 0 0
Representativ
e
Bookkeeper P14,300 P652.5 P286 P100 P13,261.5

41
 0 0
Production P10,120 P450 202 P100 P9,368
Worker (1)
Production P10,120 P450 202 P100 P9,368
Worker (2)
Driver P10,120 P450 202 P100 P9,368

2.5.1.8. Payment of Wages

Time of Payment
● Claiming wages of the employees will be every 15th and 30th of the month
after their working hours.

Forms of Payment
● This company will pay their employees in cash basis.

Place of Payment
● They can claim their salary in the office of the finance

2.5.2. Health, Safety and Welfare Benefits

2.5.2.1. Medical and Dental Services

The exact medical and dental benefits of a company for their employees
depend on the company's size, location, and policies. The company provides a
wide range of services, including examinations, preventive care, and treatment of
minor to moderate conditions on their employees. The budget allocated for each
employee’s health and dental care is ₱1,500 per year. The medical and dental
benefits of a startup company for their employees are very minimal. The
42
company will provide employees with basic health and welfare benefits in its
initiatory years. When the growth of a company succeeds along the way, these
benefits will surely apply. The physical examination includes the patient’s history,
mental status, general appearance, vital signs, and response to questions. A
dental service provides dental care such as teeth cleaning and applying fluoride
treatments.

2.5.2.2. Occupational Health and Safety

The company is responsible for ensuring the safety of its employees. The
employees need to understand all the safety precautions that need to be followed
while on duty and in their respective departments. The company ensures that the
employees are well informed about their duties and responsibilities as well as
about any hazards that may be present in the workplace. It provides equipment
and facilities for its employees to use during their on-duty hours, including those
needed for first aid, fire protection, and traffic management. They also provide
the employee with adequate training about the type of hazards that may be
present in their workplace.

2.5.3. Post-Employment

2.5.3.1. Termination of Employment and Retirement

The following justifications give the company the right to terminate an employee.

Offenses First Offense Second Offense Third

43
 Offense
Laziness and Oral/Written Deduction from Terminatio
tardiness that Approach salary with 1 week n
occurs twice or suspension.
more in a 15-day
period.
Unprofessional Oral/Written Deduction from Terminatio
Conduct Approach salary with 1 week n
suspension.
Destruction of Deduction from Suspension for 15 Terminatio
business salary to 30 days. n
properties.
Unauthorized use Oral/Written Deduction from Terminatio
of business Approach salary with 1 week n
properties suspension.
Scandalous Suspension for Termination Terminatio
behavior that 15 to 30 days. n
harms the
company’s
reputation.
Fails to adhere to Oral/Written Deduction from Terminatio
the policies and Approach salary with 1 week n
agreements of suspension.
the company.
Working under Oral/Written Deduction from Terminatio
the time, past the Approach salary with 1 week n
time allotted, or suspension.
outside of it
without the
general
44
 manager’s
consent.

Before terminating an employee, the PAVO Repellent Company must

follow a step-by-step process in order to do it legally and without violating any
laws.

The termination in the Philippines, is underwent in the legal procedures in

accordance with the Department of Labor and Employment. The components of
the procedural due process, as follows:
● At a hearing or conference, an employee has the chance to address the
allegation, present defense evidence, or contest the prosecution's case.
● A dismissal notice informs the employee that there are grounds for
termination after a careful review of all the circumstances.

Retirement Policy

The retirement will be contingent upon to the Republic Act No. 10757, "An
Act Reducing the Retirement Age of Surface Mine Workers from Sixty (60) to
Fifty (50) Years, Amending for The Purpose Article 302 Of PD No. 442, As
Amended, Otherwise Known as The Labor Code of The Philippines," which
significantly lowers the retirement age from 60 to 50 years. The law also modifies
the Social Security Act's and the Labor Code's retirement provisions to authorize
miners to retire at 50 as well as receive retirement benefits. Surface miners who
have worked for at least five (5) years previous to retirement are likewise subject
to the retirement requirement.

45
 2.6. Management Policies

2.6.1. Hiring Policies

Requirements Needed for the Interested Applicants:

 Birth Certificate (PSA)
 NBI Clearance
 SSS Number
 Phil Health Number
 Pag-Ibig
 Tin Number (BIR)
 Medical Record/Health Card
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 2.6.2. Marketing Policies

● The General Manager needs concepts from the marketing department before
further materials for promotion and advertising are constructed. The Marketing
Team must keep the General Manager updated on their progress along with the
campaign's results.
● The goal is to ensure that the General Manager or Corporate Finance receives a
report upon each expense.
● Communicate with the General manager to learn more about the strategy being
used to implement the marketing plan.
● The Marketing Team is in responsibility of developing the product brand and
guaranteeing it is effectively marketed, and the General Manager must provide
their approval.

2.6.3. Finance Policies

The company has provided financing policies to maintain what the
company has, to avoid corruption and to be transparent in the management of all
finances.
 Budgeting The company must establish a budget for future expenditures in
order to fund the company's needs and prepare employees' salaries.
 Revenues and Expenses The company must provide a list of expenses to
determine where the money was spent and a list of revenues to determine how
much money the company earned.
 Receipt The company must provide receipts for each product sold so that a
record can be kept.

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2.6.4. Production Policies

Production policies are fundamental to the operations of every business.

Companies can make sure they are creating high-quality goods or services in a
secure and effective manner, as well as reducing waste and fostering
sustainability, by adhering to these principles.

 The workers should wear their uniform during the production hours.
 No food and beverages allowed in the production room.
 No gadgets allowed in the production room.
 No phone calls allowed during the production hours.
 The worker should use gloves and some PPE during the production.

2.6.5. Store Policies

Company focuses more on distribution as a mode of process.

2.7. Systems and Forms Design

2.7.1. Employee Requisition Form

This form is a document used to request the hiring of a new employee. It

includes information such as the job title, date of the requisition, position status,
work schedule, and number of months and hours required for the job.

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2.7.2. Application Form
An official document that employers want their job candidates to fill in while
applying for a job. 
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2.7.3. Employee Monthly Time Card
Time cards is use to manage attendance and keep track of employee productivity
in addition to being used to determine an employee's compensation.

PAVO Repellent Company

Name:
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 Department:
Position:
DATE TIME IN TIME LUNCH TIME IN TIME OVERTIME TOTAL
OUT BREAK OUT HOURS

2.8. Company Uniform

The company has required its production workers and company driver to wear
their uniforms. For production workers, a white polo shirt with company logo in front
which they can pair with white pants, for company driver white shirt with logo at the back
which they can pair with maong pants. The purpose of requiring uniforms is to identify
and acknowledge every employee where they are working. The business is at its
starting phase, the chances and possibility of providing funds for the uniforms is not
expected, the company decided to deduct the expenses that will be used for the white
polo shirts and shirts with logo to the one-month salary of every production worker and
company driver. Other employees with higher positions should wear civilian and it must
be casual attire to make themselves more comfortable and presentable as they go to
their works and as doing their assigned task during their working hours.

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 Production Worker

Driver

2.9. Proponents Capitalization

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Proponents Address Position Share Capital
Manulid, Vistarica, General 16.67 P250,000
Rhain Ivy G. Subdivision, Partners %
Dolores City of San
Fernando
Pampanga
Medina, Purok 1, San General 16.67 P250,000
Christine Mae Nicolas, Partners %
P. Floridablanca,
Pampanga
Melo, Perly S. Purok #2,ng General 16.67 P250,000
Santol, Porac, Partners %
Pampanga
Nucup, 4th Street Parian, General 16.67 P250,000
Crispel P. Mexico, Pampanga Partners %
Resurreccion 3 Manggahan St. General 16.67 P250,000
, Aidan B. San Carlos, Partners %
Mexico, Pampanga
Tapnio, Karla Purok #7, San General 16.67 P250,000
Izzamae A. Juan City of San Partners %
Fernando
Pampanga
TOTAL P1,500,00
0

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