1. 53
CHAPTER 3
MAMAGEMENT PLAN
The management aspect involves the organization, company structures and
policies to fully prepare and equip the company with adequate knowledge on running the
business as well as complying with legal requirements. This portion also includes a clear
and precise identification of duties, responsibilities, compensations, flow of authority and
manpower level requirement to direct the members to coordination and productivity.
I. Company Structure
Board of
Directors (5)
Internal Auditor
(1)
Chief
Executive
Officer (1)
Productions
Manager (1)
Chemist (1)
Purchasing
Officer (1)
Human
Resource
Manager (1)
Supervisor (1)
Marketing/Sales Chief Accountant
(1)
Manager (1)
Sales Agent
(5)
Factory
Workers (12)
Maintenance
Personnel (4)
Company Nurse
(1)
Delivery
Personnel (4)
Fig.3.1 Company Structure
Cost
Accountant
(1)
Treasurer
(1)

2. 54
II. Manpower Requirements
General/ Administrative
Position
Board of Directors
-
-
Job Description
Directs the company
towards excellence.
Govern and facilitate the
decision making of the
company.
Assures the credibility and
integrity of the company.
Supervise the overall
operation of the business.
Implement business
policies and goals.
-
-
-
Internal Auditor
-
-
-
Chief Executive Officer
-
-
Productions Manager
-
-
Expresses an opinion
whether assertions of the
management in financial
statements are free from
material misstatements.
Inspects and examine
whether internal control is
accurate and effective.
Check whether the
financial statements are
free from error and fraud.
Constructs business
policies and
recommendations to the
board.
Administer the overall
operation of the business.
Instructs and guides
courses of actions
throughout the operation.
Controls and monitors the
overall production of the
product.
Guides, instructs and
motivate employees.
Makes sure the efficiency
and effectiveness of the
-
-
-
-
-
Job Qualifications
Must own at least one share
of the capital stock
registered in his/her name.
Every director must
continuously own at least a
share of stock during his
term, otherwise, he shall
automatically cease to be a
director.
Must be capable of
governing the business.
Must know and understand
the overall operations of the
business.
Holds the title Certified
Public Accountant.
Must have objectivity and
professionalism.
With good communication
and interpersonal skills.
Must be a graduate of any
business course.
Should have at least 3 years
of outstanding actual work
experience.
Professional written and
verbal communication and
interpersonal skills.
Excellent managing skills.
Must be a graduate of any
business course.
With good managerial,
communication and
interpersonal skills.
Competent and dedicated to
the job.

3. 55
-
Human Resource
Personnel
-
-
Chief Accountant
-
-
-
-
Cost Accountant
-
-
-
employees.
Find ways to make the
company more productive
through effective
production processes.
Screens applicants and
suggest the management
the most promising ones.
Determines procedures on
how to motivate and train
employees.
Ensures the preservation
of employee dignity.
Manage the accounts and
finances of the company.
Implement generally
accepted accounting
procedures.
Determines proper
handling of financial
transactions and approves
transactions within
designated limits.
Control the emergence of
inconsistencies in
accounting procedures.
Reports to the
management matters
about the financial
statement accounts.
Primary responsibility is
the compilation and
preparation and of
financial statements.
Gathers and keep records
of all production cost.
Allocates the production
cost to the products
produced.
Prepares the cost of
production report.
Do bank reconciliations
Make sure the
completeness, validity and
accuracy of financial
statements, per account
-
-
-
-
Must be a graduate of
Bachelor of Science Major
in Human Resource
Management or any related
courses.
With good interpersonal and
communication skills.
Holds the title of Certified
Public Accountant.
With good interpersonal and
management skills.
With good communication
skills.
Possess extensive
knowledge of generally
accepted standard
accounting principles.
Must be a graduate of
accounting major course.
With professionalism and
good communication and
interpersonal skills.

4. 56
Treasurer
-
balance and transaction
level.
Keeps safe custody of the
company’s cash.
Prepares financial reports
to management.
-
-
Attends to the medical
needs of the personnel.
- Manages the medical
supplies in the clinic.
- Be able to apply first aid
procedures if the
circumstance requires.
- Account all the inventory
Purchasing Officer
accounts.
- Ensures the availability of
all materials for
production and office use.
- Process acquisition slips
and prepares purchase
orders.
Table 3.1 Manpower Requirements for General/Administrative
Company Nurse
-
-
-
A graduate of Bachelor of
Science in Business
Administration Major in
Finance/Financial
Management
With good communication
skills.
Knowledge financial
analysis and
communication.
Male or Female.
Must hold a title of a
registered Nurse.
21 to 40 years old
Finished a college degree.
With good communication
and interpersonal skills.
With no criminal record or
offense.
Sales/ Marketing
Position
Marketing/Sales Manager
Job Description
- Develop and create
marketing strategies.
- Assures the market
visibility of the
company.
- Instructs and guides
agents.
- Thoroughly study the
market needs and how
to supply them.
Job Qualifications
- Must be a graduate of
Bachelor of Science in
Business
Administration Major in
Marketing or other
related courses.
- With excellent
marketing and
management skills.
- With good
communication and
interpersonal skills.

5. 57
-
Sales Agent
-
Search for potential
buyers.
Market and sell the
product.
Make deals and
contracts with
customers.
-
-
Must have at least 2
productive years in the
marketing-field.
23-35 years old
Finished a college
degree.
With good
communication and
interpersonal skills.
With pleasing
personality.
Table 3.2 Manpower Requirements for sales/marketing
Direct Labor
Position
Factory Workers
Job Description
- Has the over-all
responsibility on the
process of producing the
product.
- Puts raw materials into
process.
- Guards the production
process.
- Packing the final
product.
Table 3.3 Manpower Requirements for Direct labor
Job Qualifications
- Male or Female
- 20 years old and above
- Must be at least a high
school graduate.
- With no criminal record
or offense.
Indirect Labor
Position
Chemist
Job Description
- Assures the accuracy of
the production process.
- Test compounds and
solutions.
- Check and guarantee the
quality of the product.
- Research on and
develop the production
process and the product
itself.
-
Job Qualifications
- Finished a degree of
Bachelor of Science in
Chemical Engineering.
- With good
communication and
interpersonal skills.
- Ability to analyse and
improve the scientific
aspects of the
production.
-

6. 58
Supervisor
Maintenance Personnel
Delivery Personnel
-
Instructs and guides the
workers in their duties.
- Ensure that a group of
subordinates properly
execute their functions
in the production.
- Observe and evaluate
the workers’
performance.
- Assist and recommends
to the manager the
evaluation of the
subordinates.
- Regularly check and
maintain the
productivity of the
machines and
equipment.
- Repair broken parts of
the machines and
equipment
- Ensures the cleanliness
and orderliness of the
production site.
- Ensures the company
supplies stock.
- Safely transports the
goods to customers.
- Maintains the quality of
the product during
transportation.
- Ensures that the
products would be
delivered on time.
Table 3.4 Manpower Requirements for Indirect Labor
-
-
-
-
-
-
Must be a graduate of
any business courses.
Must know how to
manage and deal with
employees.
With good interpersonal
and communication
skills.
Male
23 years old and above
Must have technical
knowledge and
experience on machines
and equipment.
Must be at least a high
school graduate.
With no criminal record
or offense.
Male
23-35 years old
Must have a
professional driver’s
license.
At least a high school
graduate.
With no criminal record
or offense.

7. 59
III. Compensation
Category
No. of
Salary per month
Salary per year
employees
Administrative
10
162,700
1,952,400
Selling
6
80,000
960,000
Direct Labor
12
103,680
1,244,160
Indirect Labor
9
132,800
1,225,200
Total
37
479,180
5,381,760
Table 3.5 Total Compensation
Position
No. of
Basic
Employees Salaries 2013
Chief Executive Officer
1
Internal Auditor
1
Productions Manager
25,000
Salary
Months
per
Salary
per year
month
25,000
12
300,000
20,000
20,000
12
240000
1
20,000
20,000
12
240,000
1
20,000
20,000
12
240,000
Chief Accountant
1
18,000
18,000
12
216,000
Cost Accountant
1
15,000
15,000
12
180,000
Treasurer
1
13,000
13,000
12
156,000
Purchasing Officer
1
12,000
12,000
12
144,000
Human Resource
Manager

8. 60
Company Nurse
1
10,000
10,000
12
120,000
Maintenance Personnel
1
9,700
9,700
12
116,400
10
162,700
162,700
Total
1,952,400
Table 3.6 Salaries of Administrative Employees
Position
No. of
Basic
Salary
Employees Salaries per
2013
month
1
Marketing/Sales
20,000
20,000
Manager
5
Sales Agent
12,000
60,000
Total
6
32,000
80,000
Table 3.7 Salaries of Sales/Marketing Employees
Position
No. of
Basic
Employees Salaries 2013
12
8,640
Factory Workers
Table 3.8 Salaries for Direct Labor
Position
Salary
per
month
103,680
Months
Salary per
year
12
240,000
12
720,000
960,000
Months
Salary per
year
12
1,244,160
No. of
Basic
Employees Salaries 2013
1
20,000
1
17,000
3
9,700
Salary
per
month
20,000
17,000
29,100
Months
12
12
12
240,000
204,000
349,200
9,000
67,700
36,000
126,100
12
12
432,000
1,225,200
Chemist
Supervisor
Maintenance
Personnel
4
Delivery Personnel
Total
9
Table 3.9 Salaries for Indirect Labor
Salary per
year

9. 61
IV. Business Monitoring
A. Pre investment Activity
Before the execution of the business, adequate knowledge should be
acquired for three months whether the formulated idea is feasible or not. Indeed,
enough attention must be rendered to this concern to be able to forecast the
possibilities. This period is set to identify the market of the projected business and
how the business will be operated and managed.
B. Business Application
This period is intended for the accomplishment of filing all the legal
papers required for the operation of the corporation. Such legal documents include
the Article of Incorporation to be filed in the Securities and Exchange
Commission (SEC), and business name to the Department of Trade and Industry
.Moreover, the company will also file other requirements to other government
offices.
C. Issuance of Stock Shares
In order to fully finance the operation of the company, such as
construction of the site, purchasing equipment and materials needed and other
projected costs, Carbon Plus Corporation will issue shares to its potential
shareholders worth P 50,000,000.00 with 500,000 authorized ordinary share
capital, P 100.00 par value.

10. 62
D. Site Preparation
In this period, the business shall prepare its plant and office location. The
business would buy the land and construct the plant and office building. It might
take more or less than half of a year for the construction to be finished and
polished.
E. Installation and acquisition of machineries and equipment
During the preparation of the plant site, the management will scout all the
necessary machineries and equipment to be used in its operations. Once the plant
site is prepared for settlement, the company would then acquire and install the
machineries and equipment.
F. Hiring and training of personnel
Now, the company shall be open for hiring employees. It shall employ the
most competent applicant for the success of the company does not only lie with
the management but also to all its personnel.
Thus, after hiring the most
competent applicant it shall now undergo through training. Here, the employee
would know and understand how the business would function.
G. Purchase of Raw Materials
This is about the purchase of raw materials coming from Quezon and near
areas. This also deals with the familiarization of employees with regards to the
usage of the raw materials in the production process for them to be
knowledgeable in the components of the product.

11. 63
H. Advertising and Promotion
In order to help the product make its way into the market, there is a need
for advertisements and promotions. Advertisements and promotions are a huge
and critical part in marketing the product especially in the first years of the
company’s operations.
I. Start of Production and Operation
The production of Activated Carbon will now start at this point. At this
time, all raw materials, manpower, and machineries are ready to operate and start
the production. Product order can now be entertained.
V. Organizational Policies
A. Employment
Before the actual operations of the business, the company will already be
working on the recruitment, hiring and training of the employees, to condition
them in the nature of the operations. After undergoing training and evaluation,
each employee would be under the responsibilities of their respective department
managers.
The key personnel will be employed on a permanent basis or depending in
work performance. However, plant workers and staff will first subject to a sixmonth probationary period.

12. 64
1. Hiring
The company will hire employees in accordance with the set of
qualifications for each position. It will be done on a first come first serve
basis; no special treatment would be tolerated to promote fairness.
2. Suspension
Suspension is a common practice in the workplace as a part of the
reinforcement procedure of the company. Negative reinforcement by B D.
Skinner will be used by Carbon Plus Corporation to motivate the
employees to follow the stated policies, wherein, corresponding
punishment will be given to employees who violate the policies.
3. Termination
Employees who persistently and heavily violate the policies of the
organization can be subjected to termination.
B. Office Hours
Carbon plus Corporation’s office is open Monday through Saturday from
8 o’clock in the morning to 12 o’clock in the afternoon and shall resume at 1:00 to
5:00 in the afternoon, having a Forty eight (48) Office working hours in a week
per personnel.
C. Factory Hours
Carbon Plus Corporation will operate from Mondays to Saturdays from
8:00am to 12:00 and will resume at 1:00 to 5:00 in the afternoon. Therefore each
worker will have forty eight (48) working hours a week.

13. 65
At some point in time, there are possibilities that the higher authority
would call the attention of the employees and schedule them for work as
necessary. All employees are expected to be at their work locations ready for
work at their scheduled time. Persistent late arrival to work and/ or early leaving
from work will result in disciplinary actions moreover, it may include
termination.
D. Working days
There will 286 working days for office employees and factory personnel
after considering the non-working holidays and a 10 day-allowance for
interruptions in the operation such as brownouts, equipment breakdowns,
typhoons and the likes.
Salaries for key personnel are fixed and shall be released every 15th and
30th day of the month. Moreover, salaries of operations personnel are also paid
every 15th and 30th day of the month, depending on the number of hours they have
worked.
Months
January
February
March
April
May
June
July
August
Number of
Days
Sundays
31
28
31
30
31
30
31
31
4
4
5
4
4
5
4
5
Nonworking
Holidays
2
0
0
3
1
1
0
5
Operating
Days
25
24
26
23
26
24
27
21

14. 66
30
September
31
October
30
November
31
December
TOTAL
365
Table 3.10 Working days
4
4
5
4
52
0
0
3
2
17
26
27
22
25
296
E. Leave of absences
All personnel of the company are entitled to a maximum of ten (10) days
leave of absences per operating year. The leave of absences should be filed one
week before the desired date and requires approval of the department manager.
The key personnel need to accomplish important tasks on their respective
department before they can avail the leave of absences. Moreover, they should
return in the office in case urgent or important situation happens that requires
their presence.
F. Disciplinary Measures
1. First offense- Verbal warning
Under this circumstance, the employee is reminded verbally about
the job performed poorly or minor violation of company’s rules and
regulations.
2. Second offense – written reprimand
What applies to verbal warning also applies to written reprimand.
In this case, the employee receives a memorandum or personal letter from
its department manager. A record of employees’ violation will be kept.

15. 67
3. Third and Fourth offense- suspension
It is done when there is a severely employee mistake. The
suspension period last up to six month period depending upon the nature
of the offense done by the employee.
4. Fifth offense- Management Intervention
In case a serious violation takes place or mistakes become frequent
in performing specific task, the management decides a specific action
applicable to the situation, which may further result to termination of the
employee on his service.
G. Employee health benefits
At the time of recruitment, there will be a physical health examination to
each applicant for the company to be sure that the personnel that will be hired are
physically healthy and mentally fit for the position. A regular quarterly check-up
will also be employed to company employees. Moreover, the company’s clinic
will be open to cater to the needs of the employees.
H. Probationary Period
A six-month probationary period is required for all new employees. This
probationary period provides an opportunity for new employees to evaluate their
work situations and in turn, provides the CEO an opportunity to judge their
performance and suitability for continued employment. This probationary does
not represent a guarantee or contract fir employment for the full six-months or
any other period of time, and does not affect the eligibility requirements for
benefits. A written evaluation will be provided by the CEO. If time restraints

16. 68
prevail, the new employee is under the probation until the evaluation has taken
place.
At the end of the probationary period, the CEO shall prepare a written
evaluation of the employee’s performance, and review the evaluation of the
employee. The evaluation shall take into consideration the employee’s ability to
form sound relationship with the membership, volunteers, staff, CEO and Board
of Directors; progress on the job; and professional community relationship.
I. Vacation
Employees may take vacations at any time during the year. They must,
however, prearrange such vacation with the CEO to avoid conflict with scheduled
and other work in the company that may require their presence. Employees may
accumulate up to 15 days of vacation time.
J. Overtime Work
Article 87 of the Labor Code of the Philippines grants that work may be
performed beyond eight (8) hours a day provided that the employee is paid for
the overtime work, an additional compensation equivalent to his regular wage
plus at least twenty-five (25%) percent thereof.
o Office employees may work until 10 o’clock in the evening
o First and Last shift of factory workers can work before their scheduled
time for overtime provided that it is necessary and for the benefit of the
entity.

17. 69
For Work Performed
on
Rate of Pay,
Based on
Daily Rate
130%
Rate of Pay,
Based on
Overtime Rate
169%
Special days
130%
169%
Rest day which is also a
special day
Regular holiday
150%
195%
200%
260%
Rest days
260%
Regular holiday which
is also a rest day
Table 3.11 Rates on Holidays and Overtime
338%
(source: Cost Accounting by Nenita Mejorada)
K. Paid Holiday
As in accordance with the Labor Code of the Philippines Art. 94, right to
holiday pay, every worker shall be paid his regular daily wage during regular
holidays.
Carbon Plus Corporation may require an employee to work on any holiday but
such employee shall be paid on a compensation equivalent work on any holiday
but such employee shall be paid a compensation equivalent to twice his regular
rate, and as used under this Article “Holiday” includes:
Regular Holiday
Date
New Year’s Day
January 1
Maundy Thursday
Movable Date
Good Friday
Movable date
Araw ng Kagitingan
April 9
Labor Day
May 1

18. 70
Independence Day
June 12
Eid’l Fitr
August 20
National Heroes Day
Last Monday of August
Bonifacio day
November 30
Christmas Day
December 25
Table 3.12 Schedule of regular holidays
Special Non-Working Holiday
Date
Chinese New Year
January 23
Quezon Day
August 19
Lucena Day
August 20
Ninoy Aquino Day
August 21
All Saints Day
November 1
Additional Special Non Working November 2
Day
Last Day of the Year
December 31
Table 3.13 Schedule of Special Non- Working Holiday
VI. Legal Requirements
For the business to be legally established and operated, the company must first
comply with different legal requirements. Thus, it shall file and process all the necessary
required documents to the following government entities before it starts its operations:

19. 71
Security and Exchange Commission
The company shall file articles of incorporation and all other necessary
requirements at the SEC office. This would give the entity its separate
juridical identity.
Department of Trade and Industry
DTI monitors businesses within the country. Thus, it is a requirement of
the government to register all business operating inside the country. And so,
the company shall register the business at this office.
Bureau of Internal Revenue
The company must file a tax identification number at the BIR. This would
oblige the company to pay taxes at a monthly, quarterly or annual basis.
Department of Environment and Natural Resources
To ensure that the company is operating in accordance with the
requirements of DENR in the proper waste management as well as other
aspects involving the utilization of the environment.
Land Transportation Office
The company will secure all the essential permit and licenses for the
registration of the delivery vehicle.

20. 72
Local Government of Pagbilao
Compliance with the legal requirement of Pagbilao will alsobe necessary,
for the location of the company’s plant site.
City Government of Lucena
Carbon Plus Corporation complies with all the legal requirements in the
city where the company will be operating.
o Zoning
The company has submitted all the legal requirements to the Zoning
Department on the local government located at City Hall, Lucena City.
o Fire and Safety
The Bureau of Fire has granted the Carbon Plus Corporation the fire and
safety permit after the inspection by their authorized staffs.
o Building permit
The City Engineer’s office has given the corresponding building permit
to the Carbon Plus Corporation after completion of all requirements
needed in applying for the permit.

21. 73
o Business Taxes and Licenses
Mayor’s permit, clearances from baranggay, and other legal
requirements have been granted to the company. These clearances and
permits will be renewed every year end and business taxes will be paid
to the City Hall for the validity of the permits and the legality of the
business.
o Sanitary Permit
Initial inspection of the place and observation of the rules and
regulations was conducted in a manner satisfactory to the Regional
Sanitation Committee.
For employee benefits:
It is mandatory by the government to give benefits and compensations to
its employees. Thus, the company should register and file its company at the
agencies below for the payment of employee compensations.
Philhealth
Pag-ibig
Social Security System

22. 74
VII. Gantt Chart
2012
Months
Feasibility
Study
Feb
Mar
Apr
May
Jun
Business
Application
Financing
Activities
Preparation of
plant site &
acquisition of
machineries
Hiring and
Training Staffs
Purchase of raw
materials
Promotion and
Advertisements
Start of
operation
Table 3.14. Table form for estimated period to start the operation
Jul
Aug
Sep
Oct
Nov
Dec
2013
Jan