CHAPTER 4

MANAGEMENT ASPECT

INTRODUCTION

The discipline of management can be defined as the process of applying

professional knowledge and skills for the coordination and administration of the
activities of an organization in accordance with specified policies for the achievement of
clearly defined organizational objectives. A simpler way of saying it is that managing
has to do with getting things done through people.

There are several fundamental management functions that any organization needs
to implement effectively to run smoothly and achieve goals and objectives. They can be
effectively categorized into planning, organizing, staffing, directing, and controlling.

Planning is the process of thinking about the activities required to achieve a

desired goal. It has a specific process and is necessary for multiple occupations
particularly in fields such as management, business, etc. In each field there are different
types of plans that help companies achieve efficiency and effectiveness.It also sets the
direction the organization will take.  Moreover, it involves translating the
organizational mission and vision into actionable objectives as well as determining how
those objectives will be achieved. Furthermore, it involves setting strategies
and policies, determining projects and programs, setting rules and procedures and
preparing budgets. 

Organizing is the function of management which follows planning. It is a function in

which the synchronization and combination of human, physical and financial resources
takes place. All the three resources are important to get results. Therefore,
organizational function helps in achievement of results which in fact is important for the
functioning of a concern. According to Chester Barnard, “Organizing is a function by
which the concern is able to define the role positions, the jobs related and the co-
ordination between authority and responsibility. Hence, a manager always has to
organize in order to get results. 

 Staffing is the process of hiring eligible candidates in the organization or company for

specific positions. In management, the meaning of staffing is an operation of recruiting the
employees by evaluating their skills, knowledge and then offering them specific job roles
accordingly. Let us find out more about what is Staffing and what it entails along with
its functions and characteristics.
 Control is a function of management which helps to check errors in order to take
corrective actions. This is done to minimize deviation from standards and ensure that
the stated goals of the organization are achieved in a desired manner.
According to modern concepts, control is a foreseeing action; earlier concepts of
control were only used when errors were detected. Control in management includes
setting standards, measuring actual performance and taking corrective action the
decision making.
Directing is said to be a process in which the managers instruct, guide and
oversee the performance of the workers to achieve predetermined goals. Directing is
said to be the heart of management process. Planning, organizing, staffing has got no
importance if direction function does not take place.

Directing initiates action and it is from here actual work starts. Direction is said to
be consisting of human factors. In simple words, it can be described as providing
guidance to workers is doing work. In field of management, direction is said to be all
those activities which are designed to encourage the subordinates to work effectively
and efficiently. According to Human, “Directing consists of process or technique by
which instruction can be issued and operations can be carried out as originally planned”
Therefore, Directing is the function of guiding, inspiring, overseeing and instructing
people towards accomplishment of organizational goals.

Management according to Harold Koontz is the art of getting things done through
others and with formally organised groups. It is the key to a successful operation. All
five functions—planning, organizing, staffing, directing, and controlling—have to be
present. Few managers are naturally gifted in these areas. It is just as important to work
at management as any other area of the operation. Management can be learned, and
the rewards are significant.

FORMS OF BUSINESS ORGANIZATION

An organization is a social group which distributes tasks for a collective goal. It is

the framework or backbone by which the work of a business, managerial or otherwise, is

performed, that it provides the required channels, point of origin and flow of management

direction and control. There are a variety of legal types of organizations, including

corporations, governments, non-governmental organizations, international organizations,

armed forces, charities, partnerships, cooperatives, and universities. A hybrid organization

is a body that operates in both the public sector and the private sector simultaneously,

fulfilling public duties and developing commercial market activities.

The right form of business organization that best suit the needs of the business must be

given consideration. The proponents has evaluated and analyzed the pros and cons of each

type of business organization, among this were sole partnership, partnership and

corporation.

The partnership is a contract whereby two or more persons bind themselves to

contribute money, property or industry in to a common fund with the intention of dividing

the profits among themselves or in order to exercise a profession.

The proponents as partners choose the General Partnership form of business, where all

partners contribute equal capital and are personally liable for the debts or liabilities of the

business. It has judicial personality separate and distinct from the partners.

Advantages:

1. Two or more persons can perform a partnership, it can be said that relative to a

corporation, a partnership is easy to establish.

2. The capital of the partners can be availed of, thus, a form of advantage compared to

a proprietorship.

3. Depending on the provision of the partnership agreement, the partnership can

attract other partner for the benefit of the partnership.

4. The skills of the partners can be exploited to the fullest to the benefit of the

partnership.

5. There are no restrictions on how the profits would be distributed as long as they are

consistent with the provision of the partnership agreement.

Disadvantages:

1. The death or retirement of the partner or any member of the partnership results in

the dissolution of the partnership.

2. One of the members of the partnership may betray the trust of the organization or

display poor ability and involve the partnership in heavy losses or debt.

3. No partner can sell his interest in the firm without dissolving the firm or obtaining

the consent of the partners.

4. Possible disagreement among partners as to the conduct of the business.

5. The unlimited liability of the partners for the debt of the firm.

ARTICLES OF PARTNERSHIP

OTOGUARD PARKING HUB

KNOW ALL MEN BY THESE PRESENTS:

That we, undersigned, all Filipinos, of legal ages, and residents of Metro Manila,

Philippines, have on this day, agreed to establish a general partnership, in accordance with the

laws of the Republic of the Philippines, under the following terms and conditions.

That the name of this Partnership shall be “Otoguard Parking hub” and shall operate and transact

business from the execution of this instrument, with the right of transfer or retirement of any

partner provided written notice and approval are made to and by the others.
 II

That the main office will be located at Asilo de San Vicente de Paul, #1148 United Nations

Avenue, Paco, Manila Philippines, and may be changed from time to time upon agreement of the

partners.

III

That the names and addresses of the respective co-partners are as follows:

Name Address

Porqueriño, Gia Layne MV Delos Santos, Sampaloc, Manila

Pratt, Sr. Margarita B. Asilo de San Vicente de Paul, Un.Ave.,Paco,Manila

Valdez, Maria Socorro Paliwas, Obando, Bulacan

IV

That the initial capital of this Partnership shall be six million (P6,000,000) Philippine currency,

broken down in contributions, as follows:

Name and amount of Co-Partner Contribution

Pratt P 2,000,000.00

Porqueriño 2,000,000.00

Valdez 2,000,000.00

V
 That the purpose for which this partnership is established is to engage in high

standard parking space business that will cater for different households within the Manila. The

business strives to be the most known and patronized parking establishments in Paco,

Manila, based on top notch quality security system, operational efficiency, customer

fulfilment, significant facilities and financial stability. It aims to provide a great reliability and

convenience to car owners by having well-secured and sanitary parking facilities to

temporarily leave their cars unattended.

VI

That Pratt, Margarita shall be designated as the General Manager of the Partnership, who shall

perform such acts and enter into transactions as may be necessary, in the name of the partnership,

for the conduct of its business; and who shall receive a monthly salary of P40,000.00

VII

That the profits and losses shall be divided equally among the partners:

Porqueriño, Gia Layne 33.33%

Pratt, Margarita 33.33%

Valdez, Ma. Socorro 33.33%

IN WITNESS WHEREOF, we have hereunto set our hands this ____ __________ at the city of

Manila, Philippines.

_____________________ _____________________
PORQUIRINO, GIA LAYNE PRATT,MARGARITA

_____________________ ____________________

VALDEZ, MA. SOCORRO

_______________________

SIGNED IN THE PRESENCE OF:

_____________________ _____________________

WITNESS WITNESS

CAPITALIZATION

Capitalization would be based on the partners’ agreement of equal contribution. Each of the

general partners would give the same amount of money as contribution to the partnership.

NAME CONTRIBUTION

Porquirino, Gia Layne Php2,000,000.00

 Pratt, Margarita Php2,000,000.00

Valdez, Ma. Socorro Php2,000,000.00

ORGANIZATIONAL CHART

General Manager

Secretarial
Accountant I.T. Management

Cashier Guards Janitors

PERSONNEL REQUIREMENTS

Table 27

Job Requirements

POSITION REQUIREMENTS
 Female/Male, 23-30 years old
 Candidate must possess at least a Bachelor’s
Degreein Business
Studies/Administration/Management.
General Manager
 Must possess at least 3 years of experience in the
related field
 Computer Literate
 Must have good interpersonal skills
 Female, 21-25 years old
 Must possess at least a Bachelor’s Degree in
Business
Secretary
 With at least 2 years of experience in related field
 Computer Literate
 Must have good interpersonal skills
  Female/Male, 25-40 years old
 Must be a graduate of BS Accountancy
 Must have at least 3-year work experience in the
Accountant related field
 Must have good interpersonal skills

Cashier  Female, 21-25 years old

 Must possess at least a Bachelor’s Degree in
Business
 With at least 2 years of experience in related field
 Computer Literate
 Must have good interpersonal skills
IT Staff  Female, 21-25 years old
 Must possess at least a Bachelor’s Degree in
Information Technology/Computer Science
 With at least 2 years of experience in related field

Must have good interpersonal skills

Janitor  Male/Female, 21-35 years old
 Must be a college level
 With at least 2 years of experience in related field
 Must have good interpersonal skills

Guard  Male/Female, 21-35 years old

 Must be a college level
 With at least 2 years of experience in related field
 Must have good interpersonal skills

Table 27 shows the job requirements for each position in the organization.

Stated above were the qualifications and traits of the works so that they may enjoy
and execute their jobs properly. It specifies the type of employee the job needs for in
terms of skills, experience and other qualifications. It serves as guidance and standards
in the recruitment and selection of employees in a particular job.

Table 28

Job Description

POSITION DESCRIPTION
General Manager  Assumes general direction over the affairs of the
 organization in accordance with the
mission/vision, core values, goals and objectives
of the organization.
 Responsible to the Owners in all matters
pertaining to the governance of the entire
organization.
Secretary  Provides clerical assistance to the Manager,
disseminate information to concerned person.
 Responsible for keeping records of the business.
 Responsible for preparing necessary financial
documents
 Receptionist
 Responsible for checking the up-to-date recording
of Cash receipts and Disbursement books and the
preparation of the financial reports.
 Responsible preparing and processing of all
expenditures of the organization.
Accountant
 Responsible for keeping and filing of Financial
documents.
 Responsible for compliance of different
government regulations especially permits and
licenses of the organization.
 Responsible for the physical control of daily cash
collections, securities and other documents of
cash value received by the office.
Cashier
 Receives payments and issues corresponding
receipts.
 Issues and verifies statement of accounts.
 Responsible for all computer related activities.
 Implements systems and provides for on-going
maintenance and enhancement of computer and
I.T. Manager
equipment.
 Prepares and installs computer, program software
and other peripheral devices
 Maintains the cleanliness, orderliness and
sanitation of the parking space and its vicinity.
Janitor  Beautifies the premises
 Reports all identified damaged equipment and
facilities.
Guard  Responsible for promoting safety and protection of
persons and properties within the organization.
 Facilitates the smooth flow of the ‘TRAFFIC’ –
coming and going of the cars.
 Facilitates the compliance of the customers on the
traffic rules and regulations of the organization.
Table 28 lays the job description of the business organization’s list of positions.

The information stated above is an abstract derived from job analysis report
describing the scope of responsibilities and duties of each personnel in the organization.

SALARIES AND BENEFITS

Table 29
Personnel Compensation
NUMBER OF MONTHLY ANNUAL
POSTION
EMPLOYEES COMPENSATION COMPENSATION
General
1 40,000 360,000
Manager
Secretary 1 20,000 180,000
Accountant 1 30,000 360,000
I.T. Manager 1 30,000 360,000
Cashier 2 15,000 180,000
Janitor 3 13,000 156,000
Guard 9 13,000 156,000
Table 28 shows the monthly compensation of each employee involved in the business.

The compensation of each employee will be bases upon the job evaluation and

position classification which is a great factor contributing to the measure of

responsibilities and training or experience required. The compensation of the

employees stated above is gross of mandatory contributions.

EMPLOYEE BENEFITS

Employee benefits are accompanying compensation that employees receive aside

from their regular pay. These additional benefits would motivate the workers to perform
their duties and responsibilities more efficiently. It is also the right of every employee to

receive incentives and benefits in return for their satisfactory performance.

With the objective of motivating employees to aspire for quality service, Car Spa On-

The-Go would voluntarily extend benefits and incentives to all of its regular employees

without the need for employee to ask or demand for it. Regarding this policy, Car Spa

On-The-Go will grant the following leaves and benefits to each of its personnel.

 Social Security System

All qualified employees will benefit the privilege of the said organization such as

retirement benefit such that when an employee retires from work upon reaching

the retirement age established in the collective bargaining agreement or other

applicable employment contract; Death Benefit which is granted in event of the

deceased SSS member's beneficiaries, receiving from the System an amount

equivalent to the deceased member's monthly income benefit, plus a ten percent

(10%) fraction of the death benefit thereof for every listed dependent child, with

the list not exceeding five, beginning with the youngest to the oldest. The list may

not be substituted nor appended; and the Disability Benefit which is granted

depending on the severity of the disability claim which is to be determined by the

medical director of the System and approved by the Employees' Compensation

Commission.

 13th Month Pay

This benefit is given to employees before the last month of the year, amount of

which is similar to their one month salary.

  Salary Increase

The business will attempt to give its employees future increases in their salaries.

FRINGE BENEFITS

It is anything that is added to the regular wage or salary of the employee to be

able to improve their economic condition. Such benefits are as follows:

 Meal Allowance

Every employee is entitled to receive this allowance since the company will not

provide food throughout the operation.

 Vacation Leave

The company should be considerate to give its employees a time to spend for

relaxation, rest, travel, or even a simple leisure time actively away from the

mundane business operation. They are entitled to have five days vacation leave

subject for approval and any exceeding days will be considered absent.

 Maternity Leave

 The company grants the following leave with pay for female employees.

 Caesarean Delivery – entitled to a 75 day pays leave upon leaving a

caesarean birth.

 Normal Delivery – entitled a 60 day pays leave upon leaving a normal

birth.
  Paternity Leave – male employees may be given 7 days leave upon the

birth of his child and to spend time with his wife.

 Special Leave

An employee may request and be granted a special leave with pay.

 Bereavement

The company respects the loss of loved ones immediate family, an employee’s s

entitled to have 5 days leave.

COMPANY POLICIES

Company policies and procedures establish the rules of conduct within an

organization, outlining the responsibilities of both employees and employers. Company

policies and procedures are in place to protect the rights of workers as well as the

business interests of employers. Depending on the needs of the organization, various

policies and procedures establish rules regarding employee conduct, attendance, dress

code, privacy and other areas related to the terms and conditions of employment.

Customer service affects all levels of our retail operation, and everyone involved needs

to have the same mindset and follow the same policies.

Here are the basic policies our business should establish and enforce:

 Courtesy is king. All customers should be treated in a courteous manner at all

times..
 Be professional. All employee breaks and personal business should be

conducted out of the view of customers, and cell phone calls or other personal

communications should be limited to lunch or breaks.

 Go the extra mile for a customer.

 Dress appropriately.

 Develop rapport with the regulars. 

 Employees should check in with the office regularly.

 Employees should inform their manager of their whereabouts so they may be reached

easily.

Extraordinary Service:

1. Service must exceed our customers' greatest expectations.

2. To earn the right to keep customers by treating them like friends.

3. The first and foremost responsibility of every employee is to serve customers.

4. Employees who provide extra-ordinary service are recognized and rewarded.

People Development:

1. We respect the dignity and worth of every person.

2. The contribution of every person is important for the well-being of the company.

3. These are a people-growing company, committed to the development of every

employee.

4. Every employee must be willing to grow and improve to be a part of our organization.
 Building the Organization:

1. Working together as team is imperative for meeting the challenge of providing extra-

ordinary service.

2. Teamwork flows from an atmosphere of trust, where open communication is strongly

encouraged.

3. The foundation of our organization is truth telling, to which everyone is held

accountable.

Teamwork results in building a sense of community, where people support and

encourage each other to grow and improve. All employees should be well trained and

knowledgeable about how we run the business.

RECRUITMENT PROCEDURE

Recruitment and hiring of personnel and employees are serious responsibilities. It is

worth the effort to know and observe the proper procedure in hiring to ensure the

success in choosing the right man for the right job and avoid the snap judgment. The

responsibilities of procedure for the recruitment, selection, and hiring of the employees

differ among companies.

The aim of this procedure is to ensure that a fair, consistent, non-discriminatory and

effective practice is adopted in all areas and at all stages of the organisation’s

recruitment process. This policy applies to the recruitment of permanent, fixed term and

sectional staff.

1. Establishment of a vacancy/authority to recruit

1.1 A vacancy may arise from either the resignation/dismissal of an employee in an

established post or, the creation of a new post approved by the management

committee.

1.2 Where the vacant post is a previously established post and the manager wishes to

recruit to the vacancy, (it is not automatically assumed that like for like’ recruitment

is to immediately follow a resignation, there may be operational reasons for a

delay; the opportunity to make changes to the post), the manager should advise

the management committee of any changes required to the job description and/or

person specification. The senior manager/line manager will progress the vacancy

or give approval for this to go ahead – recruitment advertising; putting together the

recruitment pack; arranging the short-listing panel, advising upon interview

questions etc. This is to ensure a consistent approach to recruitment is

maintained.

2. Where a need has arisen for a new post to be created and recruited to, a

development appraisal is required by the Management Committee, outlining the

request for a new post and why it is required. This appraisal requires details of the

strategic and financial implications of the post, any funding that may be available,

the length of time for which the post is required (permanent or temporary) and the

conditions it is dependent upon.

3. Recruitment advertising

3.1 All vacant posts will be advertised internally initially and where a suitable member

of staff is not available internally then posts will be advertised externally.

3.2 All advertisements will carry a statement of equal opportunities and will state a

closing date. The wording currently used is the organization is committed to a

policy of equal opportunities and positively welcomes applications from all sections

of the community’.

3.3 Advertisements will be placed in a minority publication (as well as other

appropriate newspapers and journals) if this is seen as the most effective way to

ensure that the recruitment is accessible to a wide section of the population as well

as other appropriate newspapers and journals.

3.4 Care will be taken that nothing in any advertisement has the effect, albeit

inadvertent, of discriminating against either sex or against any section of the

population. In particular, attention shall be paid to relevant sections of the

Commission for Racial Equality's code of practice on race relations and to the

Equal Opportunities Commission's code of practice on sex discrimination.

3.5 Copies of job advertisements will also be sent to voluntary organisations, and

other community organisations, where appropriate.

3.6 All advertisements will state that the position is subject to a Criminal Record

Bureau Check

4. Criminal Records Bureau

4.1 All positions with the organization are subject to a criminal records bureau check

4.2 The organization will not employ any person who will be working with children until

a satisfactory clearance has been received

4.3 All other persons employed by the organization should receive a satisfactory

clearance prior to being confirmed in post

4.4 All advertisements should inform prospective applicants that the post is subject to

a Criminal Records Bureau Check

5. Use of recruitment agencies and consultants

5.1 In exceptional cases, where it is found necessary to use recruitment agencies or

consultants to fill a particular post, attention shall be paid to ensuring that such

agencies or consultants have their own equal opportunities policy. Such agencies

are to be made aware of the organization’s desire to operate an equal

opportunities policy and they will be required to operate in a way that will not

contradict this aim.

6. Application forms

6.1 The organization will use a standard application form for all posts.

6.2 As a general principle, only relevant information will be requested on the

application form.

6.3 The application form is designed in such a way as to preclude Equal Opportunities

information, name, address, age etc from the short-listing process. The EOP

information supplied with the application form is used for monitoring purposes only.

7. Information to applicants
7.1 All persons enquiring about a particular post will be supplied with an application

form, job description, person specification and any appropriate additional general

information about the organization and its areas of work.