MODULE 7:

Management Requirements

Module Review:
This module will give learners brief discussion on the 4Ms of Management
Operation. It involves the production which can be both reactive and proactive. It
will react on what is sold today and meet the expectations set by the team or
management. It will be needed in the future plans in the operation. This will also
describe the manpower requirements in business operation.

Lesson 1: 4 Ms of Management Operation

Introduction:
The key factor to have a successful business is to have a successful procedures
and processes which can accomplish both. The 4Ms of business are needed to
maximize the efficiency of the procedures and train the production staff on each of
their responsibilities.

Learning Outcomes:
1.Identify the 4Ms of business operation.
2. Learn the significance of each in management operation.

4 Ms of Management Operation

1.Method: Manufacturing is the conversion of raw materials into finished products.

To ensure of the proper execution, sequence of operations should be clearly defined.
This will assure the company that consistent quality product will be produced.
The use of inventory system can help determine the stock levels. The manager
can determine the volume of products that need to be processed and who will be
responsible for each step in the process. The manager will decide on what is the
most efficient way for each portion of the process must be use to eliminate damage
to the product and to eliminate areas where time and manpower will be wasted. To
control the key to efficient and profitable production.
The number and capacity of the machine and equipment are determined after
forecasting production and schedule. The manufacturer should be consulted in the
preparation of the detailed specifications of the machine and the origin. Good plant
layout will result to a lower production cost.
Plant lay- out must be:
a. product- based : It is being used for job – shop operation
b. process- based: It is used for batched or continuous production operation

2. Manpower: It is the second M of management . It will determine the ideal

number of people who will perform the methods and what positions should they be.
“How will the personnel be trained and measured for performance? “What is the
“cycle time” of each part of the method?

3. Machine: The third M of management. Examining the facilities, vehicles and tools
are important to ensure the safety of the employees while maximizing the efficiency
and productivity of department or area.
Determination of the plant size, machinery and equipment required need to be
identified. Detailed specifications which includes its function for each type of
number units required. The size should be closely coordinated with the
manufacturer or suppliers. The origin of the machines whether local or abroad. The
availability of after- sales service and spare parts should also be considered.
The manufactured product must have its general and technical description.
General Description states the basic description of the product
Technical description is the detailed information related to the design and
construction of the product. This is normally prepared with the help of engineer.

4.Materials: It is the last Ms of production. Are all the materials needed in the
production available?
Materials include both direct and indirect or consumable materials. All the
specification needed, quantity and the schedule of delivery should be clearly stated.
Utilities include power, water, if needed in the production gases and steam.
Depending on the product or services.
Production cost is the sum of direct cost and indirect cost or overhead expenses.

Lesson 2: Manpower Requirements

Introduction
Personnel or laborer should be listed accordingly, from the managerial
position, supervisory position to the staff or workforce needed in the operation of
the business. Selecting the most suitable personnel for the company is one of the
most important factors that need to be consider. The necessary knowledge, skills,
abilities and other characteristics that will help organization achieve its goal.
Qualification Standards:

THREE KINDS OF QUALIFICATION STANDARDS:

1.Manpower: It refers to the personality required to a worker’s traits, manners,
values, appearance and the way people talk. His overall physical attributes in
relation to the job criteria.
2. Experience: It is the length of working experience in relation to the job criteria
that workers apply for.
3. Academics: It is the worker's academic qualifications or their educational
attainment needed for performing the job better.

4 Functional Areas of Management:

1.Marketing:
a. sale and delivery of products to buyers
b. delivery of products to distributors
c. promotion and advertising
d. After- service support
2. Production:
a.Product manufacture or service delivery
b. Machine operation
c. Repair and maintenance
d. Quality control
e. Raw materials and finished products inventory
3. Finance:
a.Book keeping
b. Payroll preparation
c. Settlement of payables and collection of receivables
d. Petty cash management, etc.
4. Administration
a. Ordering of supplies
b. Sales contract preparation and business permits renewals
c. Keeping and maintenance of personnel records
d. Business communication and inquiries, etc.

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

STEPS IN RECRUITMENT:
1.Study the different company jobs and write its descriptions and specifications.
Job Description: It is the duties and responsibilities of a particular position. It is
important part of hiring and managing employees. It is made to help the employee
understand their roles and what they need to be held accountable.
 It helps attract the right job candidates
 It describe the major basis for outlining performance expectations, job
training and job evaluation and even career advancement
 It provides reference point for compensation decision and even unfair hiring
practices.

It should be practical, clear and accurate to effectively define what are needed by the
employee.
Analysis on the job include:
a. Individual tasks involve
b. The method used to complete the tasks
c. The purpose and responsibilities of the job
d. The relationship of the job to other jobs
e. Qualifications needed for the job.

It includes:
1. Job title
2. Job objective
3. Summary of general nature and level of the job
4. Description of the broad function and scope of the position
5. List of duties or tasks performed critical to success.
6. Key functional and relational responsibilities in order within the company
including supervisory, subordinating roles and other working relationships.

Job Specification: It gives the specific qualifications required for the position such
as type of experience needed for the job, special training, skills, and physical
demands, special abilities, aptitude, age, physical qualifications and other
requirements.

2. Requisition of new employee: A formal requisition form is required to know the

needed position to be filled, date needed, qualifications and other requirements
needed for an applicant.

3. Actual recruitment of applicants

Sources:
a. Internal: employees recruitment within the company
b. External: applicants which are recruited through other requirements needed
for an applicant.
Selection:
It is the process in an organization where they identify and make decisions
about the applicants who will be allowed to join the company. A selection process
must be created to have job description that will identify the applicant/s knowledge,
abilities, skills and other characteristics required in the job.

STEPS IN SELECTION:
1.Reception of Applicants: screening of applicants through interview
2. Preliminary Interviews: it is being done to check if applicants are qualified for
the position and eliminate those who are not.
3. Filling out of Application Form: This will serve as a guide in interviewing the
applicant to determine if they matches the job requirements.
4. Employment Test: It is given to measure the applicant's abilities needed for the
job.
5. Final Interview by the Superior or Department Head: It will determine who
will be hired and is fitted in the job.
6. Physical and Medical Examination:
Medical Examination: It helps to know if the applicant is fit to work in terms
Health concerns which might hinder his ability to perform his job.
Pre- Employment Test: Pre- employment background check is important in
Hiring employees to obtain important information of the applicant in terms
of work performance and his ability to do specific job.
7.Hiring: The applicant who was hired will be sent to Human Resources
Department
8. Orientation: The new employee will now be oriented on company’s policies,
rules and regulations.

Training / Retraining
All new employees are required to undergo training to help him perform his
tasks/ job efficiently. It is being carried out continuously in many organizations
according to the needs of the company.
Retraining is needed for those who need enhancement, new knowledge on the
present job, need promotion and transfer to other departments.

Compensation:
Compensation is being given to the personnel based on their qualifications. It
is being given in monetary form. The common standard in determining wage rates is
through the industry standard.

Organizational Policies
A company manual and code of discipline contains information about the
company policies, employees privileges and benefits.
Activity 1: FSM
1.Prepare a Product Life Cycle for advertising your food product.

I.Product Development
II. Introduction
III. Growth
IV. Maturity
V. Decline