Organization and Management Study Introduction Managing an organization is not universal in orientation. Each type of organization or business has its specific management system and structure through which management style is based. We must always take into account that business seeks reward for its effort and investment and so one must really give importance on the business management aspects which unfortunately sometimes are taken for granted. Management is the coordination of all people in the business through the processes of planning, directing, organizing and controlling of all activities in order to attain stated goals and objectives. With these in mind the business people, a good competition for the firm between other entities is a sure shot. Since the stated aspect is such a crucial role, this part of the study will show the business’ management goals and objectives first and foremost, the form of ownership undertaken by the Biba Lavandera laundry shop, the people that will be a part of the business, their job descriptions and specifications, functions, their proper compensations and suitable deductions for insurance. Also the specific schedules from the preparatory stage to the start of operations are to be made known. Thus, this study answers the questions regarding the efficiency of the organizational setup and how the key players are qualified enough to perform the tasks that they are responsible for. It gives the details
A. Basic Considerations The purpose of this project study is to make Biba Lavandera laundry shop the most patronized laundry shop on the local market offering a more efficient and faster service than the competitor but in a same price. To offer fast and reliable service in washing the communities’ dirty clothes. The business Biba Lavandera has established goals or objectives that are expected to be attained within affirmed future dates. The laundry shop is likely to expand the business in other areas of the community to be able to reach those areas which are somewhat far from the Biba Lavandera, likewise spread-out its efficient and quality service for other target market.
The shop also targets to gain 50% of loyal customers that could be a home or non home owners in the subdivision. That is to have an increase on the clients of the laundry shop due to the shop’s excellent service. This will also clear the ways on Biba Lavandera’s rule on market and uplift the shop against its competitors within the subdivision that will label and identify Biba Lavandera amongst others. Another strong feature of the shop is its friendly, approachable and fun nature of its personnel and the shop itself and Biba Lavandera’s sense of social responsibility that will ascertain a good brand to customers and will gain their loyalty upon the first three months of operation. In addition, the project also seeks these specific objectives: Offer satisfaction to all customers. Attract the market and achieve loyalty from customers. Establish a competitive organization and management structure. Provide income and employment opportunities. Build a healthy community and support projects for social programs
B. Forms of Ownership The Biba Lavandera is a business under Sole Proprietorship, own by Jenibe A. Bernil. This is the simplest and most common form of business organizations. Basically this is established by one individual, who also owned most, of not all of the business; assets and properties. Similarly, liabilities, management and control are all determined by the owner. Sole proprietorship as its name suggests denotes single ownership, though, the owner makes decisions by himself but mostly with assistance from the immediate family members. The profits generated by the business solely belongs to the owner but his sole managerial decisions and profit taking could mean exclusivity; thus burden is not distributable, in contrast to other forms of business organization. He takes enormous liability; personally, he is liable to all debts of the business. It is observable that in spite of its being high risk; still many people prefer to engage in this form of business than invest in partnership or buy stocks of companies. Transferability of a Sole Proprietorship
Anytime the owner wants to sell or transfer ownership to another person can be done easily and does not require too much formality, by just complying with minimum legal requirements like deed of sale, transfer or sale is consummated. Duration of a Sole Proprietorship The duration of the business is heavily predicated on the life of the owner. Normally, with the death, retirement, or physical incapacity of the owner, the business ceases but this is entirely dependent on the heirs, if they want to continue its operation or have it sold. But in most cases, the family may decide to go on for both financial and memoirs of their late loved ones. Capital Requirements of a Sole Proprietorship There is less capital sourcing for sole proprietorship, basically because of its limited assets, market, and sometimes volume of production. Institutional lenders like banks and lending houses normally consider ability to pay to hinge on business scope and type of business engage in. In totality, source of capital for sole proprietorship centers very much on the owners’ wealth and credit standing.
Characteristics Sole proprietorship is basically distinctive from other form of business organizations in the following areas: 1. Limited life This form of business does not have a specific lifespan because dissolution can be initiated solely by the owner unlike in partnership wherein the break-up has to be decided by all partners. 2. Profits Since ownership belongs to only one person, thus for profits. 3. Income tax Taxes paid by this form of business ownership is minimal compared to other business organization, and in some cases could be totally free because of difficulty free because of difficulty assessing its real earnings.
C. Organizational Chart
Manager: Jenibe Bernil
Manager/ Owner
Washer
Receptionists Receptionist
Washer
Washer
D. Officers and Key Personnel The Biba Lavandera laundry shop’s operation and its management undertakings will be in the power and authority of course of the Manager or Owner (Jenibe A. Bernil) since it is early stated that the business took the form sole proprietorship. However business activities will surely cause the owner to be in need of few staff to accommodate customers of their wanted service. While the owner will take care of all major things, employed staffs will have to deal with the actual service for the customers. The Biba Lavandera has the following job descriptions for the following job offer on the management and subordinate level;
Manager/Owner In the case of Biba Lavandera, the manager will be responsible for all major tasks that the shop will be responsible for all major tasks that the shop will be having whose responsibility and authority covers the entire business. The functions basically are to make major plans and policies for the shop as well as accomplishing the accurate and up to date accounting records of transaction, control and handling of funds, preparation of required reports and costing of products and formulation of manpower and resources within his jurisdiction.
This part describes the duties and responsibilities of a particular position and the required qualifications for such position:
Receptionist The work of a receptionist basically is accommodating all customers that will enter the store premises and coordinating and dealing with them of their requested services. Moreover the receptionist is also responsible for folding and packing the cleaned clothes and some assisting in pressing.
Washer The responsibility of the washer is to accomplish the washing, drying, pressing and all other corresponding services that are provided by Biba Lavandera laundry shop. These should include washing clothes using machine or by hand washing. These people or staff usually do their work at the backdoor or backhouse in which they will not be dealing with customers and focusing on their work.
Job Specification -Male/Female at least 25 years old -Good communication skills, fair knowledge on basic hand washing and use of washing machine, pressing, etc. -With or without experience on the kind or line of service -Cheerful, meticulous, goal-oriented and honest
Compensation: Following the Labor Code of the Philippines, the business enterprise will give a minimum wage for positions like receptionist and washer. The compensation of the staff is on per hour basis. Hence the staffs on the said positions are to receive a basic salary based on the total hours they worked multiplied by the wage per hour.
Employee Benefits SSS (Social Security System) "It is the policy of the State to establish, develop, promote and perfect a sound and viable tax-exempt social security system suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful protection to members and their families against the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden. Toward this end, the State shall endeavor to extend social security protection to workers and their beneficiaries." (Section 2, RA 8282) Phil Health The coverage for this is compulsory to all members except to Non-Government Workers. Among the benefits that can be availed of are hospitalization expense and surgical expense benefits (like room and board, drugs and medicines, x-ray/laboratory test/others, operating room fee, medicines bought and laboratory performed outside hospital during confinement period). The following dependents are also entitled to the above benefits: legitimate spouse who is not a Phil Health member; parent who is 60 years old and above, not a Phil Health member; unmarried children above 21 years old with physical/mental disability, congenital and/or acquired before reaching 21 years old; unmarried and unemployed legitimate, legitimated, acknowledged and illegitimate children or legally adopted/step children below 21 years old. Employee Leave Sick leave An employee benefits in the form of paid leave, which workers can use during periods of temporary sickness or to stay home and address their health and safety needs without losing pay or their jobs. In some places of employment it is a workplace policy, and in many jurisdictions it is codified into law. Some policies allow workers paid time off to attend doctor visits or to care for family members. Vacation leave The purpose of paid vacation is to encourage employees to renew themselves physically and mentally. Vacation leave also covers absences due to personal obligations, adverse weather conditions, and, in lieu of sick leave, illness in the immediate family.
Below is a chart that shows the schedule of the three employees. Their positions were not stated because as said earlier, the personnel is required to be shifted on the different positions/ tasks on different days. EMPLOYEE 1 MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY OFF OFF EMPLOYEE 2 OFF OFF EMPLOYEE3 OFF OFF
The basic salary will be computed as follows: Mondays-Fridays and Sundays Minimum wage per hour Multiply Number of Hours Total per day Saturdays Minimum wage per hour Multiply Number of Hours Total per day P47.75 X 6 P47.75 X 8
P382.00
P286.50
*Salary will be given every 15 and 30 of the month. That will be 2 weeks per cut off. Cut off is from 1st-15th and 16th-30th of the month. Number of hours worked per week Multiply minimum wage Total pay per week Multiply Number of weeks per cut off Basic Pay on 1 cut off or 15 days 38 X P47.75 P1814.50 X 2
P 3629
Manager’s Compensation Number of hours worked per week Multiply by wage Total pay per week Multiply by no. of weeks Basic Pay X 40 X P62.50 P2, 500 4
Php 10, 000
*SSS and Phil Health contributions are deducted monthly as part of the benefits of the employee.
F. Project Timetable The chronological activities that the business will go after is shown in the Gantt chart below. Activities preferably will take place monthly. Conceptualizing of the business idea will start on the month of July 2009. A study on the whole business plan or feasibility will be done on August the same year along with choosing the site for the laundry shop. Surveys will be conducted as the owner will canvas on the equipment that is needed, these activities will take place on September. On the month of October, the owner will be busy securing all permits upon registration of the business. By November the acquisition or purchasing of machineries and equipments and the renovation for the building is the main concern of the proprietor. The dry run operation will take place on December and by January 2010, the actual operation of business will start.