CHAPTER 3

Introduction

The overall implementation plan is discussed
in the organization and management study.

This aspect includes a study of the officers

and key personnel, basic considerations in
forming the organizations, form of
ownership, organization chart, and project
schedule.
 Objective

The objective of the management
aspect of a feasibility study is to
determine the optimum effectiveness of
the organizational setup and the
qualifications of the individuals who
will make up the organization. This
aspect will determine the successful
realization of the project study.
 Pre-operating Period

Project Originators/Promoters/
Managers
• This part describes the names of persons
who discover, contribute capital and even
manage the proposed business venture.
 Pre-operating Period

Firms or Persons involved in
management
• This part identifies the firms, names of
persons who are directly involved or to be
involved in marketing, production,
financing, etc.
 Pre-operating Period

Project Schedule (Gantt Chart)
• “Project Scheduling” refers to the
identification and analysis of the activities
–from the project planning stage up to the
start of the normal operations.
• A Gant Chart should be used as a
planning and control tool of studying the
project proponent.
 Pre-operating Period

• It was formulated in 1917 by Henry L.
Gantt, a noted pioneer in the field of
industrial management, as a device for
controlling the production of raw
materials.
 Operating Period

Forms of Business Ownership

1. Single Proprietorship
2. Partnership
3. Corporation
 Internal Organization

1. Manpower Requirement/Job Analysis
• This part describes the number of
personnel needed in the business.
Internal Organization

• Responsibilities and qualifications should
also be defined by making a job analysis
which will include:

 Job title
 Job description
 Job specification
 Internal Organization

2. Organizational Chart
• It is a drawing or diagram showing the
salient aspects of the organizational
structure.
 Internal Organization

Guidelines in Drawing an
Organizational Chart
a. Boxes or rectangles depicting elements in
the organization should be grouped or
placed according to the level. There are
three levels of the organization structure –
top management, middle management,
and lower level or rank and file.
Internal Organization

b. The boxes in the same horizontal level
should be the same sizes.
c. Solid lines depict the flow of authority
and responsibility while broken lines
signify the role of staff.
d. The most ideal type of organizational
chart is the pyramid type.
 Internal Organization

3. Compensation Scheme
• Compensation covers the salaries, wages,
bonuses, allowances, 13th month pay and
other fringe benefits.
 Internal Organization

Example:

Monthly Compensation Scheme

Position No. Salary COLA MC Medicare SSS
Foreman 1 P1,700 P540 P2,200 Emp. Emp.
Emplr Emplr
 Internal Organization

Example:
Projected Compensation System
Position 1988 1989 1990 1991 1992

Foreman P21,600 P23,760 P26,136 P28,749 P31,620

Note: Assumption: 5% or 10% annual increase

depending on the factors affecting compensation.
 Internal Organization

Factors affecting compensation:

1. Prevailing rate within the

business/industries.
2. Legal rate.
3. Rates intended for the project –- starting
rates and provisions for annual increases.
Thank you!
