Date post: | 30-Nov-2015 |
Category: |
Documents |
Upload: | william-andrew-gutiera-bulaquena |
View: | 275 times |
Download: | 8 times |
Case Study:
Electroparts Manufacturing,IncGroup 3
Members:
William Andrew G. Bulaqueña
Ricci A. Tilos
Nympha Marie R. Rubin
Sheila Mae N. Chua
Tristram A.Gamo
John Paul T. Antiquiera
Safie Jane M. Ayco
Mngt 12-G
Prepared For:
Asst. Prof. Dina Wong-Remoto
I. Central Problem
A. How much will be the net increase in the manpower expense of EMI in lieu of the mandated increase in minimum wage?
II. Objectives
A. To compute the estimated monthly increase in the manpower expenses.
B. To account for the net increase in employee benefits and wages.
C. To account for the changes on the employer’s counterpart of the
employees’ Medicare and SSS contributions.
D. To account for the price adjustments to meet the desired profitability of the business.
III. Alternative courses of action
A. Compute the estimated monthly increase in manpower expenses and adjust the prices of the products to cover the
expenses.
B. Hire and bribe a Certified Public Accountant to falsify the appropriate financial instruments.
C. Do not tell the employees about the latest minimum wage legislation.
D. Try to formulate cost efficient production processes to minimize production cost.
E. Give rewards and incentives for better production and sales.
IV. Evaluation
A. Compute the estimated monthly increase in manpower expenses and adjust the prices of the products to cover the expenses.
1. Advantage: You are able to comply with the legal requirements and to provide your employees with salary increases.
2. Disadvantage: The price hike or increase makes your products less affordable to the general public. You may lose a number of customers.
B. Hire and bribe a Certified Public Accountant to falsify the appropriate financial instruments.
1. Advantage: You will be able to save money and trick stakeholders and the government for your personal gain.
2. Disadvantage: If you’ll get caught, your business may turn down its operations and you’re life will end up in prison. Even if you don’t get caught, you’re conscience will probably ran after you.
C. Do not tell the employees about the latest minimum wage legislation.
1. Advantage: You will be able to save money and they will not go on strikes because they don’t know this as of now.
2. Disadvantage: But in the long run, if they discover this, they may lose your trust on you, file a case against you and your business may turn down its operations and you’ll lose lots of money.
D. Try to formulate cost efficient production processes to minimize production cost.
1. Advantage: You’ll be able to lower your production cost; thus, save money.
2. Disadvantage: However, the quality or the products may be compromise if the change in production process doesn’t leave up to the original standards.
E. Give rewards/incentives to workers
1. Advantage/s:Motivate the workers to improve production, thus, may induce the possibility of decreasing overtime works. Lessen overtime pay since they receive incentives. Greater performance.
Disadvantage/s:Employees tend to be dependent on the rewards/incentives they will be receiving, thus, lessening their performance. Increase expenses. Bias in rewarding
3. Training the staff
V. Recommendation
We recommend A, D, and E. Just be fair. Do not consider falsifying documents as a solution to the problem caused by the Republic Act. Also, do not even think about trying to trick your employees and workers. Human resources are the most important assets of a business. Take the risk of increasing product prices because if you don’t, another problem will certainly arise; operating losses also. Consider the reality that expenses are part of income. Just make sure that you’re spending your money on the things worth spending for. One good example is giving your employees the salary increase they deserve. This will obviously make them happy and motivate their job performance. The quality of your products reflects the image of your business. You have to balance effectiveness and efficiency. Develop innovative ideas to attend more customers.
VI. Conclusion
Compute the necessary adjustments or increases on the expected manpower expenses of your business and make sure this conforms to the legal requirements stated by the law.
Category of Worker
Minimum Daily Wage
Number of Days (Ave)
Subtotal (Minimum wage*No. of Days
Overtime Rate (12.5%)
Hours (Overtime
) AVE
Subtotal (Overtime rate*No. of
Days
Total (Regular pay+Overtime
PayMedicare
ContributionsSocial Security Contributions Subtotal
Overall Total
Increase of Pay (PHP)
Percentage
Estimated Increase In Manpower Expenses
Assembling 64 25 1600 8 5 40 1640 (12.50) (100.00) (112.50) 1527.50 70-89 110%-140%10%-40%
Eletrowelding 64 25 1600 8 5 40 1640 (12.50) (100.00) (112.50) 1527.50 70-90 110%-140%10%-40%
Carpentry 64 25 1600 8 5 40 1640 (12.50) (100.00) (112.50) 1527.50 70-91 110%-140%10%-40%
Quality Control 64 25 1600 8 5 40 1640 (12.50) (100.00) (112.50) 1527.50 70-92 110%-140%10%-40%
Pancking and Shipping 64 25 1600 8 5 40 1640 (12.50) (100.00) (112.50) 1527.50 70-93 110%-140%10%-40%
Total 8000 200 8200 7637.50 10-40%
Past point of View:
Basis:
PhilHealth:
Social Security System:
Minimum Wage: (at present)
Commissioners
Page NWPC Intranet
Effective 01 November 2012:
Sector/Industry
Basic WageAfterCOLA
Integration
COLA Effective 3 June
2012
COLA Effective
1 Novembe
r 2012
New Minimum Wage
Rates
Non-Agriculture P 426.00 P 20.00 P 10.00 P 456.00Agriculture (Plantation and Non Plantation)
P 389.00 P 20.00 P10.00 P 419.00
Private Hospitals with bed capacity of 100 or less
P 389.00 P20.00 P10.00 P 419.00
Retail/Service Establishments employing 15 workers or less
P 389.00 P20.00 P10.00 P 419.00
Manufacturing Establishments regularly employing less than 10 workers
P 389.00 P 20.00 P 10.00 P 419.00
a/ Covers the Cities of Caloocan, Las Pinas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Paranaque, Pasay, Pasig, Quezon, San Juan, Taguig, and Valenzuela and Municipalities of Navotas and Pateros. b/ Grants the following to all minimum wage workers in the private sector in the region:a. Integration of P22.00 COLA under W.O. No. RB-NCR-16 into the basic wage.b. P30.00 COLA per day to be given into two (2) tranches:
Category of Employees
Minimum Daily Wage (PHP)
COLA(Cost of Living Allowance) June 3 2102
COLA November 1 2012
New Minimum wage Rates
Number of days (Ave)
Regular Monthly Pay Subtotal (# of Employees*Wage Rate*No. of Days
Overtime Pay (PHP)
Hours (Ave overtime) 12.5%
Overtime Pay Subtotal (# of Employees*Pay*Hours
Total (regular Monthly Pay+Overtime Pay)
Medicare Contributions(Philhealth)
PAG-IBIG (2%)
Social Secutiry Contributions Subtotal Total
Assembling 426 20 10 456 25 11,400 57 5 285 11,685 (105) (228) (812.7) (1,146) 10,539
Elecrowelding 426 20 10 456 25 11,400 57 5 285 11,685 (105) (228) (812.7) (1,146) 10,539
Carpentry 426 20 10 456 25 11,400 57 5 285 11,685 (105) (228) (812.7) (1,146) 10,539
Quality Control 426 20 10 456 25 11,400 57 5 285 11,685 (105) (228) (812.7) (1,146) 10,539
Packing and Shipping 426 20 10 456 25 11,400 57 5 285 11,685 (105) (228) (812.7) (1,146) 10,539
57,000 1,425 58,425 (525) (1,140) (4,064) (5,729) 52,697
Computation of Estimated Increase in Manpower Expense of Electroparts Manufacturing, Inc
Category of Worker Number of Employees Individual Pay
Total Pay( Individual Pay*No. of Employees
Assembling 20 10,539.0 210,780.0
Eletrowelding 6 10,539.0 63,234.0
Carpentry 4 10,539.0 42,156.0
Quality Control 5 10,539.0 52,695.0
Pancking and Shipping 8 10,539.0 84,312.0
Total 52,695.0 453,177.0
> P20.00/day upon effectivity of this Wage Order> P10.00/day effective November 1, 2012W.O. issued 17 May 2012, published at Philippine Daily Inquirer on 19 May 2012. Present Point of View: