Management and Legal Aspects

7/30/2019 Management and Legal Aspects

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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA

MANAGEMENT

AND LEGAL

STUDY

M A N A G E M E N T A N D L E G A L S T U D Y Page 154


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CHAPTER 4

MANAGEMENT AND LEGAL STUDY`

Management and Organization

TYPE OF OWNERSHIP

Filipizza Company is a partnership type of organization. A partnership is

an organization where two or more persons bind themselves to contribute

money, property, or industry into a common fund with the intention of dividing

profits among themselves (New Civil Code, Article 1767).



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As to Liability and Property

As to liability, Filipizza Company is a General Partnership wherein all

partners are liable up to the extent of their personal property. On the other hand,

as to property, Filipizza is a Universal Partnership of Property wherein all

partners contribute all their properties into a common fund.

Partners Roles

1. The partners are co-owners of the partnership property. It means that

when a partner invests his land or building, this ceases to be his personal

property, instead it becomes joint property of all partners.

2. The partners have unlimited liability. The partners become individually

liable for all partnership debts in the event that the partnership assets are



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not sufficient to cover up its liabilities. This means that the partnership

creditors can attach or seize personal properties of the partners if their

claims cannot be fully satisfied by the partnership assets.

3. The partnership is bound by the acts of any of the partners since they are

considered agents of the partnership for the purpose of carrying activities.

ORGANIZATIONAL CHART


GENERALMANAGERS (2)

Production

Heads (2)

Kitchen

Cooks (2)

Cashiers (2)Service Crews (2)


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SHAPE \* MERGEFORMAT



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OFFICERS AND KEY PERSONNEL

It is very vital in all business organization to know their manpower

requirements to operate systematically and effectively at all times. It will help also

to determine the capacity or capabilities of the employees to fit in the flow of


Exhibit 28: ORGANIZATIONAL CHART


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business as well as to have a clear duties and responsibilities. Having standard

qualifications in hiring and selecting, the employee will establish efficient

business operations.

POSITION JOB DESCRIPTION JOB SPECIFICATION

General Manager

(2)

- Responsible for the

overall supervision and

monitoring of all

subordinates- Responsible for the

administration of all

management functions

planning, organizing,

controlling and directing

- Handles the

implementation of

policies, rules and

regulations allthroughout the

organization

- Responsible for the

overall ongoing

production operations

- College graduate of 4-

year Management

Degree

- At least years ofworking experience in

food chains

- With pleasing

personality

- Qualified college

graduate, male or female

- Very good in decision-

making and good in

handling people

- Good communicative

skills

Production

Heads (2)

- Serve as lead cook in the

kitchen

- Perform various jobduties that will include

cooking, baking of pizza

and other duties in

accordance with kitchen

needs.

- Work requires effective

communication in

English, both verbal andwritten form in a

professional manner.

- Work requires a minimum

of 3 years of experience

as a cook.



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- Perform preliminary

preparation work in a

timely manner.- Ensures ingredient

supply levels are

accurate.

- Work requires ability to

work from a standing

position for extendedperiods of time.

- Work requires a neat

appearance with good

personal hygiene.

Cook (2)

- Prepare and cook

pizza orders following

specific cooking

instructions

- Maintain sanitation,

health, and safety

standards in work areas

- Clean food

preparation areas,

cooking surfaces and

utensils

- Verify that preparedfood meets requirements

for quality and quantity

- Must be a graduate of

a 2-year course in Hotel

and Restaurant

Management Services or

a 4-year course Hotel

and Restaurant

Management

- With a minimum six

months of experience on

catering services or

restaurant services

- Can work under

minimal supervision

Service Crews

(2)

- Prepare food, clean and

complete other tasks as

assigned

- Responsible for taking oforders, seating

customers, washing

dishes, bussing tables

and delivering food to

hungry customers

- College

undergraduate or a fresh

graduate of any 2-year or

4-year course- Must have a

background on hospitality

management

- Must have cooking

abilities



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- Can work under

minimal supervision

Cashiers (2)

- Greet customers politely

at all times

- Ensures good customer

relations by giving

friendly service to them

- Handles money/sales

properly

- Eliminate loss of the

store by accuratelyreceiving payment and

giving of charge

- Must be a graduate of

any 4-year course under

hospitality management

courses or business

management courses

- Must handle transactions

smoothly

- Honest and reliable

- Can work under minimalsupervision

Table 52: OFFICERS AND KEY PERSONNEL JOB DESCRIPTIONS

AND SPECIFICATIONS

EMPLOYMENT PROCESS

1. Applicants will be passing an application form or resume with 2x2 colored

photo to the General Manager.

2. The general manager will analyze the contents of the resume and will call

the applicant for the initial examination if interpreted to be satisfactory.



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3. The manager will provide an initial exam which contains basic and

abstract questions.

4. If the applicant passed the initial exam, he will be provided a reviewer

containing the menu ofFilipizza as well as their corresponding descriptions.

5. The applicant will be asked to return after three days for three final exam

based on the reviewer provided.

6. If the applicant passed the final exam, he will be immediately interviewed

for final screening.

7. After the final interview, if passed, will be given the list of requirements to

be complied for a specific period of time.

8. After compliance of all the requirements, the applicant will be scheduled

for orientation together with the other applicants.

9. After the applicants are oriented, they will be trained for one week

regarding the operations of the business applying the basic principles of the

company.

Employment

It is the companys policy to select applicants based on the followingfactors:

Mental aptitude

Social skills



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Physical fitness

Strength and weaknesses

Experience

As such only applicants who passed the qualifying examinations, series of

interviews, medical examinations and background investigations shall be

considered for employment.

Employment Requirements

pieces 2x2 pictures

pieces 1x1 pictures

NSO Authenticated BirthCertificate

NBI and Police Clearance

SSS Number

TIN Number

Drug test

Medical examination

Barangay Clearance

Working Permit

Health card

CLASSIFICATION OF EMPLOYEES

According to Rank

Managerial Employee One who is vested with powers or prerogatives to lay

down and execute management policies and/or hire, transfer, suspend,



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lay off, recall, discharge, assign or discipline employees.

Supervisory Employees One, who, in the interest of the employer,

effectively recommends such managerial actions if the exercise of such

authority is not merely routinely or clerical in nature but requires the useof

independent judgment.

Rank-and-file employee all other employees not falling within any of the

above definitions.

According to Status

Contractual or Seasonal An employee is hired for a specified period of time

under an agreement prior to or at the time of employment.

Probationary an employee is hired on a probationary basis for a period not

to exceed six (6) months.

An employee is hired on a regular status upon satisfactory completion of

the probationary period and upon satisfaction of the criteria necessary for

appointment as regular status.

The company reserves the right to amend the above classification or



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create sub - classifications as the circumstances of the business may require.

Orientation

All newly hired employees regardless of classification of rank and status

must undergo on orientation and indoctrination as to the Companys vision,

mission, policies, rules and regulations, duties and responsibilities and menu

familiarization

Personnel Records

It is the responsibility of the company to update and maintain personnel

records. It should contain the following document and records:

Resume with 2x2 colored photo

Test results

Interview impressions

Mayors permit and health certificate (to be renewed every calendar year)

Transcript of records

TIN,SSS,PHIC,HDMF numbers

Employment Contracts

Performance Evaluation forms

Certificate of trainings attended

Leave and violation records



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If there are changes in an employers personal data such as residence

address, civil status, dependents, etc, a report should be made for updating

purposes. Withholding information and failure to report will result in willful breach

of trust wherein continuance of service will be questioned.

Contracts of Employment

All employees shall duly sign, execute and deliver the corresponding

Contract of Employment. All employees shall thereafter be issued a company

identification card, which must be worn at all times during working hours.

CODE OF ETHICS

Hygiene and Sanitation



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All employees must observe must observe the highest standard of

hygiene and sanitation. Employees must be well-groomed and continue with their

work, wearing clean and proper attire. For this purpose, the term well-groomed

shall mean proper haircut, cut fingernails, use deodorant, and clean and regularly

washed hands. For this purpose, the term clean and proper attire shall likewise

include newly-washed and properly-ironed attire, no excessive dirt on clothes

and shoes, and proper and complete company uniform worn properly.

Arrival and Departure of Employees

All employees regardless of status and rank, must submit all personal

belongings for inspection upon entering the company premises. Inspection will

include a tickler which shall list all contents of his bag, down to the smallest

detail.

All personal belongings are restricted within the locker area while the

employee s on-duty. It is strictly prohibited to bring in any personal belongings

based on the tickler as well as body frisking. If found questionable items in his

possession, this shall be reported to the manager on-duty immediately for proper

action.

Procedure for Notices/Bulletin Boards



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Management shall post all notices, announcements and memoranda of

general application on the bulletin board. Ignorance is not an excuse and it is

incumbent on each employee to regularly check the bulletin boards for new

notices, announcements or memoranda. No employee is allowed to post or

remove any document on the bulletin board without the prior permission from the

management.

Notice of Disciplinary Action

In accordance with the due process requirements of the Labor code, as

amended, all employees found or reported to have committed a violation of the

company rules and regulations shall be given a written notice to explain, and

shall be given the opportunity to explain why no disciplinary action should be

imposed against him. Thereafter, any disciplinary action to be imposed by the

management shall again be indicated in writing and duly furnished to the affected

employee.

Code of Conduct

Without in any limiting the prerogative of the company to amend, modify,

revoke, or add to the ff. List of offenses, the following acts and mere attempts to



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commit such acts, even if unsuccessful, shall warrant the corresponding

disciplinary actions.

Kinds of Penalties

Employees are subject to penalties according to their violations made

during their employment.

Written Report of Warning (WR)

It is the notice calling all the attention to the offense and warning the

offenses against repetition of such violation in the future.

Suspension (3D/6D/9D)

If a worker has committed offense for the second or third time, he is

subject to suspension. He will be detached from the organization with the

designated period of time without payment.

Termination (TR)



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Termination will be given to employees who have committed a major

offense. The employee will be dishonorably separated from the organization.

Offenses WR 3D 6D 9D TR

* Tardiness 1st 2nd 3rd 4th 5th

* Absence without leave 1st 2nd 3rd 4th 5th

* Loitering or unauthorized leaving of post 1st 2nd 3rd 4th 5th

* Extending break period 1st 2nd 3rd 4th 5th

* Unauthorized use of company time for 1st 2nd 3rd 4th 5thpersonal pursuit

* Insubordinate or disobedience tosuperior 1st 2nd 3rd

* Negligence or carelessness 1st 2nd 3rd 4th 5th

* Unauthorized use or misuse of company 1st 2nd 3rd 4th 5th

property

* Willful destruction of company properties 1st 2nd

* Discourtesy towards consumers,suppliers, 1st 2nd 3rd 4th

superiors and co-workers

* Using profane language or obscenelanguage 1st 2nd

to superiors

Offenses WR 3D 6D 9D TR



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* Stealing or attempting to steal properties

of the company or of the co-workers 1st

* Failure to comply with company rulesand standards on security & safety andhealth & sanitation

1st 2nd 3rd 4th

*Failure to comply with health, securityand safety requirements of the company 1st 2nd 3rd 4th

*Immortality or scandalous acts1st

Table 53: KINDS OF OFFENSES

COMPANY RULES AND REGULATIONS

Employee Discipline

This handbook on Employee Discipline is intended to promote a

harmonious employment relationship and healthy working environment.

At Filipizza, employment relationship is primarily anchored on

Unparalleled Client Satisfaction, Teamwork, Respect for the Individual,

Developing People, Diversity, Shareowners Trust and Integrity. Guided by these

values, we create an environment that does not only attract but also develops

and rewards highly effective people and be recognized as one of the best

companies to work.



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In resolving conflicts and infractions, Filipizza encourages creativity and

initiative through dialogues, coaching and mentoring. Should all these fail, stiffer

yet commensurate measures may be taken, not so much to punish but to correct

errors and prevent its recurrence, so that the Handbook also becomes an

instrument to enhance work performance.

We encourage all employees to thoroughly study this Handbook and be

familiarized with the expected rules of conduct. Ignorance of the provisions

contained in the Handbook and subsequent related revisions, does not excuse

an employee from its observance and sanction prescribed for violations.

Policy on Attendance and Punctuality

At Filipizza, employee attendance is important to achieving organizational

goals. All employees, regular or otherwise, are required to follow procedures in

taking leaves and notifying absences.

As a food industry, the company heavily relies on complete attendance

and a sufficient workforce to meet its day-to-day business volume requirements.

An unmanned post, as a result of unplanned and unexpected absences and

leaves does not only affect operational synergies but also immediately results to

losses in earnings, revenues and penalties due to the inability to meet business

demands with necessary headcount.



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Unannounced and/or unapproved absences immediately and directly

impact the companys service levels to its clients since an unmanned post results

in lost hours, inability to adhere to line requirements, productivity targets, service

levels. These issues cause the company to suffer substantial losses due to lost

revenues.

Thus, the supervisor is tasked to manage the attendance of his/her

subordinates, specifically through the following activities:

Monitoring his/her subordinates daily attendance (including

tardiness, undertime, overtime, leaves, etc.) The supervisor is

required to conduct a one-on-one coaching session with the

employee who had incurred 2 instances of absences during his

probationary employment.

Recognizing the employees effort to comply with the attendance

and punctuality policy.

Issuing disciplinary action to employees violating the policy on attendance

and punctuality.

Towards this end, this policy on attendance and punctuality aims to

establish the guidelines and monitoring scheme of employees attendance and

punctuality.



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Official Work Hours

A. Employees are required to work eight (8) hours a day, with a one (1)

hour paid meal break, as scheduled on a six-day week basis.

B. Depending on operational demands, the immediate supervisor may

require an employee to work on the 6th day and during his/her rest day.

The employee shall be paid additional compensation for work

performed on these days.

Tardiness

1. An employee is considered tardy when he/she reports for work after the

start of his official work hours or shift schedule. Every two (2) instances or

an accumulation of 30 minutes of reporting late for work whichever comes

first shall constitute one offense of TARDINESS.

2. An employee who is required to work at a given schedule on his/her 6th

working day shall be considered tardy if he/she reports for work after the

start of the official work schedule. Since additional compensation for the

6th working day is based on the actual hours worked, there shall be no

corresponding tardiness deduction during this period. However, the

tardiness shall be subject to disciplinary action.

3. All tardiness offense of an employee shall be cleared one (1) year from

the date of his/her last disciplinary action for tardiness.



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Undertime

An employee is liable for the offense of unauthorized Under-time when he

leaves work before the end of his official work hours or shift schedule, without the

written consent and approval of his/her supervisor.

1. In case of emergency, which requires the employee to leave before the

end of his 8-hour work, he shall secure prior approval from his immediate

supervisor. For purposes of this policy, emergency situations shall refer to

all circumstances that endanger the life and/or property of the employee

and his immediate family. Immediate family shall be limited to spouse,

children, parents and siblings only. Emergency situations involving other

members of the family may be allowed with prior consent and approval of

the supervisor.

2. Under-time shall be deducted from the employees month-end payroll.

Vacation and Sick Leave Notification

VACATION LEAVES

1. The request shall be submitted to the immediate supervisor for prior

approval at least two (2) working weeks before the starting date of the

leave. However, where the vacation leave shall exceed 3 days or



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2. A medical certificate, duly certified and authenticated by the

physician, must be attached to the leave form if sick leave was for two

(2) days or more. The certificate, which must be submitted in 2 days

after the leave, should indicate the illness of the employee and his

fitness to work and/or recovery from such illness, issued by a

competent company physician. Failure to submit medical certificate is

subject to appropriate disciplinary action.

ABSENCE WITHOUT OFFICIAL LEAVE

1. An absence is defined as not reporting for work. Thus, employees who

report for work even during the last hour of their shift cannot be

considered as absent.

2. The following cases are considered AWOL:

- When an employee is absent for any reason and fails to call or

notify his/her supervisor.

- When an employee is absent without justifiable reason or the

absence is not supported by medical documents.

- Any absence not supported by an approved leave application.

- When an employee fails to report for work while on training or

during critical dates, recalled day-offs or vacation leaves,

holidays, weekends and other special days.



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3. All AWOLs are considered as leave without pay, even if the employee

has earned his leave credits.

Attendance during Training and Probationary Employment

Absence is not allowed during training, unless for a valid and excusable

reason. Each case will be investigated in order to determine the validity of the

absence. The management reserves the right to decide the merits of each case.

Disciplinary actions incurred during training shall carry over once the

trainee enters the store. Thus, all similar offenses incurred after training will

escalate to the next level of disciplinary action.

Disciplinary Rules in Sexual Harassment Cases

Filipizza values the dignity of its human resources and guarantees full

respect for the individual, whether employees, trainees, or applicants for

employment;

Filipizza likewise commits to maintain a work environment free from

sexual harassment and all forms of sexual intimidation and exploitation, and it will



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not tolerate harassment of its employees by anyone; including the manager, the

supervisors, the vendors, clients or customers;

Towards this end, the management renounces all forms of sexual

harassment and hereby adopts this policy defining the offense of sexual

harassment and prescribing penalty thereto.

Sexually Harassment may be committed by any of the following:

1. Employees

2. Manager, supervisor or employee

3. Instructor or facilitator.

4. Persons with authority, influence or moral ascendancy over another in

a work, training or education environment.

5. Person directing or inducing another to commit any act of sexual

harassment.

6. Person cooperating in the commission of any act of sexual harassment

by another without which it would not have been committed.

Policy on Drug-free Workplace and Mandatory Random Drug Testing



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Filipizza envisions a drug free community and it renounces all forms of

illegal drug trafficking, abuse, addiction and dependency on a working

environment.

The management commits to safeguard the well being of the employees

from the ill effects of dangerous drugs by pursuing an intensive and unrelenting

campaign against the use of dangerous drugs and other similar substances.

Towards this end, all employees are required to attend anti-drug abuse

programs and undergo random drug tests, in accordance with this Policy.

Implementing Guidance:

A. Definition of Terms

Administer any act of introducing any dangerous drug into the body of

another person, with or without his/her knowledge, by injection,

inhalation, ingestion, or other means, or of committing any act of

indispensable assistance to person in administering a dangerous drug

to himself/herself unless administered by a duly licensed practitioner

for purposes of medication.

Confirmatory Test an analytical test using a device, tool or equipment

with a different chemical or physical principle that is more specific

which will validate and confirm the result of the screening test.



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Dangerous Drugs as enumerated and defined under Republic Act 9165

otherwise known as the Dangerous Drugs Act.

Drug Dependence as based on the World Health Organization definition,

it is a cluster of physiological, behavioural and cognitive phenomena of

variable intensity, in which the use of psychoactive drug takes on a

high priority thereby involving, among others, a strong desire or a

sense of compulsion to take the substance and the difficulties in

controlling substance-taking behavior in terms of its onset, termination,

or levels of use.

Trafficking the illegal cultivation, culture, delivery, administration,

dispensation, manufacture, sale, trading, transportation, distribution,

importation, exportation and possession of any dangerous drug and/or

controlled precursor and essential chemical.

Instrument anything that is used in or intended to be used in any manner

in the commission of illegal drug trafficking or related offenses.

Random Drug Testing

1. All employees are required to undergo a random drug testing for purpose

of reducing the risk in the workplace.

2. Drug testing shall consist of both the screening test and the confirmatory

test. The latter to be carried should the screening test turn positive. The



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employee concerned must be informed of the test results whether positive

or negative.

3. A drug test is valid for one year, however, additional drug testing may be

required for just causes as in any of the following cases:

a) After workplace-related accidents

b) Following treatment and rehabilitation to establish fitness for

returning to work/resumption of job

c) In light of clinical findings and/or upon recommendation of the

Assessment Committee.

4. All cost of drug testing shall be borne by the company.

STORE UNIFORM



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Figure 33: STORE UNIFORMS (FOR MALES


The uniforms will be worn during store hours. The uniforms for employees

costs P600.00 will be deducted from their own salaries.

SALARIES, WAGES AND OTHER BENEFITS

Salaries and Wages



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All employees shall receive their respective salaries or wages as

provided in their Contracts of Employment every last Saturday of the

month.

Paid Meal Period

A one (1) hour break for lunch meal will be provided for every

employee with pay.

SSS, Pag-Ibig and PhilHealth Benefits

Employee benefits from contributions for SSS, Pag-ibig and

PhilHealth shall be granted to employees in accordance with applicable

laws. Implementation of procedures relative to the said benefits should be

done in accordance with the regulations to be promulgated by the

management.

Accident Insurance

Regular employees are enrolled by the company under a reputable

Insurance Firm. Any accident, work-related or not shall be incurred shall

be compensated by this insurance. This plan shall be on employee-

employer participating basis.

Certificates and Awards



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There will also be certificates and awards that will be provided by

our company in order to recognize employees who are performing well.

These awards include The Crew of the Month Award, Most Punctual

Employee, Model Employee of the Year and the likes.

WORK SCHEDULING

Table 54: WORK SCHEDULING

Employees MON TUES WED THUR

S

FRI SAT SUN

Gen. Manager OP-CL OP-CL OP-CL OP-CL OP-CL OP-CL RD

Cashier 1 RD OP-CL CL OP CL OP CL

Cashier 2 OP-CL RD OP CL OP CL OP

Service crew 1 RD OP-CL OP CL OP CL OP

Service crew 2 OP-CL RD CL OP CL OP CL

ProductionHead 1

OP CL RD OP-CL CL OP CL

ProductionHead 2

CL OP OP-CL RD OP CL OP

Cook 1 CL OP RD OP-CL OP CL OP

Cook 2 OP CL OP-CL RD CL OP CL

TOTAL 8 8 9 9 11 11 10

Store Hours: 9:00am to 9:00pm

Hours of Operation: 12 hours ofoperation

10 Employees are needed indaily operation

Legend:

RD = Rest Day

OP = Opening (10am 3pm)

CL = Closing (3pm 10pm)



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Legal and Taxation Aspects

PLACE OF

REGISTRATIONLEGAL DOCUMENTS

City or Municipal

Mayors Office

Business Permit

Barangay Business Clearance

Lease Contract

Location Clearance

Fire Clearance

Sanitary/Plumbing Permit

Bureau of Internal

Revenue

2316 Form

1702 Form

1903 Form

1907 Form

Social Security System

R-5 Form

R-1 Form

R-1A Form

Department of Trade and

Industry

Application for Partnership

Articles of Co-Partnership

Registration Data Sheet

Table 55: LEGAL REQUIREMENTS

Management and Legal Aspects

Documents