Chapter 4 Organizational and Management Aspect PDF

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Chapter 4 ORGANIZATIONAL AND MANAGEMENT ASPECT This chapter shows the form of business organization, organizational structure, personnel needed and job specifications and qualifications of the employees for the operation of the business. Personnel’s duties and responsibilities as well as the salary structure will be discussed in this chapter. It also includes the pre-operating activities and the time table.

4.1. Form of Business Organization The Laundry on the Go form of business organization is partnership which defines according to R.A. No. 386, Article 1767, by the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves. The partners are the owners of the proposed business. Partnership is easy to establish. Partners are bound by a mere agreement where the cash or properties contributed are to be owned by the both partners. Contract between partners should properly detail in case of conflicts in agreement between the partners. It should include the proper distribution of profit or loss and the duties and responsibilities of each partner to avoid the overlapping of authority.

4.2. Organizational Structure The organizational structure is a chart which shows the hierarchy of authority of a certain organization. It shows how the power and responsibilities are assigned and controlled in different level of organization. The laundry on the Go will be using line or direct organizational structure.

Figure # Organizational Chart

The above figure shows the organizational chart of Laundry on the Go.

The

authority

and

responsibilities

in

decision

making

and

implementations of rules are centralized to the managers which is also the owner of the business. The authority starts from partners/managers and directly associated to the personnel under the lower level of organization. 4.3. Personnel Qualification

Selection of personnel is very important before the business start its operation. Hiring qualified and responsible personnel plays a big part in the success of the business. The owners should identify qualities and standards the applicants should posses. Illustrated in Table # below are the manpower requirements and their qualifications.

Position

No. of

Qualifications

Person Laundry Attendant

4

Driver

2

 Must at least 21 years old  Preferably, know how to operate

washing machines and dyer.  Preferably, know how to iron clothes.  Must be a licensed driver  Must at least 21 years old  Must have a certificate from driving lessons Table # Personnel Qualifications

4.4. Personal Duties and Responsibilities Personnel duties and responsibilities must be clearly identified to avoid overlapping of jobs. The following are the duties and responsibilities of the every employee to be hired in Laundry on the Go.

4.4.1. Laundry Attendant

The following are the duties and responsibilities of a laundry attendant:  Responsible for receiving items to be cleaned.  Organize items according to different ways they have to

be washed.  Test fabrics in inconspicuous places to determine

whether solvents will damage dyes or fabrics.  Responsible

for

washing,

drying

and

operating

commercial equipment. 

Iron clothes and fold.

 Responsible in documentation of sales.

4.4.2. Driver The following are the duties and responsibilities of a driver:  Drivers are responsible for inspecting vehicle prior to

leaving the place.  Must observe all traffic regulations.  Responsible for taking appropriate measures to secure

and safeguard the vehicle until it is returned to the designated location.  To take the vehicle (s) or send them to a repair shop/

garage for repairs when needed.

 Responsible to operate generator.

4.5. Personnel Salary Structure Salary is a compensation given by the employer as a payment of the services rendered by the employees. Employees are contracted to work for a specific hours per day and are expected maximize hours to perform services in a satisfactory standards. Specifically, the personnel will work eleven (11) hours per day during Monday – Saturday and seven (7) hours per day during Sunday. The illustration below shows how much compensation the employee may receive in rendering the services.

Personnel

No. of Employee

Gross Pay

Total Gross Pay

Laundry Attendant

4

₱5,500

₱22,000

Driver

2

₱4,500

₱9,000

Total

₱31,000

6

Table # Personnel Monthly Salary Structure

4.6. Pre-Operating Activities Pre-operating activities are activities that will take place before the start of business operation. Time intended for the activities are base on the

survey and interview conducted on the existing players in the market, to avoid unnecessary expenses that may occur during pre-operating activities.

4.6.1. Project Feasibility Study In this activity the prospective owners must conduct a study to know whether the venture is profitable and beneficial to customers and to the managements. Under this activity the owner should obtain analysis about all aspects of the business, such as market, technical, organizational, financial and socio-economic. It takes two months to complete this activity.

4.6.2. Selection of Area The prospective owners will look for appropriate and suitable area where services are to be offered. This includes the activity of accessing potential baranggays were the caravan is to be scheduled to offer the services. The selection will consider following factors:  Population of the baranggays. 

Urbanization of a baranggays. It should be considered to evaluate the capacity of the residents to avail the services offer by the proposed business.

4.6.3. Permits and Licenses For the legality of the business, prospective owners must secure a permit and licenses to the authorized licensing office. The proposed business must register into:

4.6.3.1. DTI Name Registration Below are the requirements needed

4.6.3.1. Business Permit The process below is the revised business permit application process in the city as required in the City Mayor’s - Business Permits and Licenses Division. Step1. Secure forms from City Mayor’s Office (CMO) – Business Permit and Licenses Division (BPLD)/ BPLD lounge. Step2. Submit to BPLD the duly filled-up forms: 

Application form



Barangay Clearance



Community tax certificate



SEC



BIR Annual Registration



Pag-ibig

Step3. Proceed to City Treasure’s Office to pay appropriate dues. Step4. Proceed to Bureau of Fire Protection (BFP) to get fire safety inspection certificate (FSIC). Step5. Return to CMO- BPLD to submit all documents for preparations of business permit. In addition to the abovementioned, the following requirements must also be complied.  SSS Clearance  Phil health Clearance  Pag-ibig Clearance  CENRO Clearance and official receipt

4.6.3.2. Land Transportation Permit The Mobile Laundry must be registered before it will be used in the operation. Below are the steps in the application for new or initial vehicle registration required by Land Transportation Office: Step1. Proceed to the transaction counters and submit all the required documents to the evaluator for evaluation and computation of fees.

Step2. Actual inspection of motor vehicles with duly accomplished MVIR. Step3. Proceed to the cashier for the necessary fees and obtain an official receipt. Step4. Proceed to the releasing counter to obtain the certificate of registration, plates, stickers and other requested documents. In addition to the following requirements must also be complied.  Commercial Invoice of MV issued by the country of origin  Bill of Lading  BOC Certificate of Payment  Certificate of Stock Reported (CSR)  Sales Invoice of the MV  PNP-TMG MV Clearance Certificate  Duly

accomplished

and

approved

Motor

Vehicle

Inspection Report (MVIR)  Appropriate insurance certificate of cover  Taxpayer’s Identification Number (TIN)

4.6.4. Acquisitions of Equipment and Machineries After completion of requirements and legal registration of the proposed

business,

the

prospective

owners

must

acquire

equipments and machineries needed for the operation as presented in the Technical Aspect of this study. The equipment and machineries will be purchased from the suppliers negotiated and agreed upon by the partners.

4.6.5. Construction of Septic Tank The construction of the septic tank will be under the supervision by Engr. Wilfredo Cea. It is mandated by the City of Environment and Natural Resources to construct a septic tank for the proper disposal of used water.

4.6.6. Hiring and Orientation of Personnel The quality of employee performance begins with the quality of the hiring process. This activity is one of the most crucial parts of putting up a business as viewed by the researchers. The prospective owners most look for the most qualified personnel. The failure and success of a venture lies in the effectiveness and efficiency of the personnel that operates the business. The owners will conduct an orientation about their jobs before they will be put in the actual practice. The hiring requirements may include but not limited to the following:

 Photocopy of birth certificate  Completely filled-up resume or bio-data  Photocopy of drivers license

4.6.7. Customization of the Caravan After the acquisition of the machineries and equipment, the prospective owners must look for a welding shops where the van will be customize as mobile laundry shops. Machineries needed for the operation will be built-in inside the van.

4.6.8. Acquisition of Supplies The acquisition of supplies will be done after the hiring of personnel and completion of customization of the van. Supplies needed for the operations will be purchased at the suppliers contracted by the partners. Other supplies will be purchased at the market here in General Santos City.

4.6.9. Promotional Activities The promotional activities will start thirty (30) days before the opening of the business. Distribution of flyers ends ten (10) days from start of operation.

4.6.10. Start of Business Operation The proposed Laundry on the Go will start its legal operation right after the completion of aforementioned activities.

4.7. Project Time Table (Gantt chart) Theoretically Gantt chart is type of bar chart that illustrates a project schedule. It illustrates the start and finish dates of the terminal elements and summary elements of a project. (www.wikipedia.org/wiki/Gantt_chart) The prospective owners should identify the amount of time needed in completion of the aforementioned activities to avoid unnecessary expenses from duplication of tasks. The table next page shows the Gantt chart of the proposed Laundry on the Go.

Activities

Duration in months 1

Project Feasibility Study Selection of Area Securing Permits and Licenses

2

3

4

5

6

Acquisition of Equipments and Machineries Construction of Septic Tank Hiring and Personnel

Orientation

of

Customization of the Caravan Acquisition of Supplies Promotion Activities Start of Business

Table # Project Time-Table...