Deadline: April 7, 2016 Thursday

A Final Project Presented to the

Faculty of the Management Department

De La Salle University

In Partial Fulfillment

of the course Requirements for

SHURMAN

Presented to:

Ms. Maricel Balatbat

Presented by:

Cabual, Paul

Carlos, Therese

Ibardolaza, Karl

Lee, Shannen

Tan, Miriam

Valera, Aaron

Yang, Kyle
I Company Profile

A. Corporate Name: Flasher Next Generation Tech

Corporation

B. Location (Main Office): 19/F Tycoon Centre, Pearl Drive cor., Ortigas Center,

Pasig City, Philippines

C. No. of Branches: 32

D. Websites: No existing website

E. Total Number of Employees: 120

F. Departments:

1. Human Resource

2. Operations / Business Development

3. Finance / Accounting

4. Audit

5. Purchasing Unit / Accessories

6. Construction Team

G. Job Descriptions

1. Store Officer-in-Charge - in charge of the general administration of the branch

2. Cashier - in charge to register the sales to POS and check sales invoice by

series

3. Sales Associates - presents and sells products to potential customer, monitor

inventory
 4. Roving Supervisor - required to perform the functions of staffing, planning,

directing, organizing and controlling the store activities.

H. Additional Information:

Brands FLASHER carries:

Cherry Mobile ASUS ZTE

Skk Acer Samsung

Oppo MyPhone

Huawei Vivo

Mobility has been the driving force behind the success of Flasher Next Generation Tech

Corporation, since its inception in the early 2005, As the company was designed to

cater Philippine market by carrying the top Mobile Brands in the country.

Flasher Next Generation Tech Corporation is not just a re-seller of different brands of

mobile phones, As the company believes that for every customer a quality service must

always be there. They are gradually improving its customer services thru giving proper

training for their front liners which they consider as one of their formidable strengths to

be competent enough in the market.

The company is not only focusing on customers, As it also value its staff through

appreciating their contributions and recognizing their efforts by giving them incentives.
While the company is consistently recognized by different suppliers of mobile brands in

the Philippines as one of their top dealers, they also maintain a good business

relationship by carrying their brand in its business expansion. They are in the process of

continuously spreading its branches to regional places whereas they can acquire target

market.

Mission:
To be visible in all major malls and a leader among all Telco Dealers when it

comes to giving a quality service for our patrons.

Vision:
To be the First Choice of customers and be a word of mouth as the best

Mobile Phones re-seller in the Philippines.

II. Status of HR System

I. Recruitment

Flasher Next Generation Technology Corporation or Flasher Telecoms is a

growing business entity focusing on retailing of various international and local brands of

mobile devices and accessories. Its continuing progress and growth over the years has

given rise to its increased presence in the industry not only in Metro Manila but also in

nearby developing cities and provinces as well. This growth may be attributable to the
growing demand of mobile phones in the country and increased competition of mobile

phone producers that offer cheap and affordable phones even for the lower-middle

income class. With over 32 branches that caters an array of different popular brands, it

is not surprising that Flasher Telecoms holds about 120 employees that creates a

mutual support system in the form of wages and benefits for the employees and quality

service and increased profitability for the company.

To cope with the expansionary plans of the company, Flasher Telecoms is

actively searching for new applicants who have enough skills and capabilities to

effectively deliver the companys objectives in the highly competitive industry. The

company established its own Human Resource Department in its head office in Ortigas

to monitor and oversee all its employees from the different branches. They are in

charge of all HR functions in each branch, which includes calculating the monthly

payroll, provide benefits and compensation, be a mediator between employees in case

of conflict and most importantly conduct the recruitment process. Given that there are

numerous branches with only several employees, the companys establishment of a

centralized HR department can indeed save manpower cost as compared to having a

personnel in each branch. There is flexibility in employee assignment in a centralized

HR department since shortages or surpluses of manpower can be easily addressed by

assigning employees to other near branches. Moreover, the company does not avail of

services of any recruitment agency since it too costly and inefficient.

In order to meet the demands for new employees, the HR Department of Flasher

Telecoms primarily announces its search for new employees through sending and
posting job hiring posters in all of its 32 branches and outside its head office. Job hirings

are also posted online through their social media accounts such as Facebook. Also, if

hiring is urgent and none of the applicants are qualified for certain positions especially

for managerial and supervisory positions, the company seeks help from the online job

platform, JobStreet.com to fill the needed positions. Since some of its branches are

located in far provinces such as Rizal, the HR head mentions that there are times that

no one applies in those branches or that accepted applicants refused to be assigned in

far branches. To resolve this problem, the HR department would sometimes coordinate

with the city hall and schedule a job fair to attract more applicants that are just living

within the area.

Figure 1. Flasher Telecoms Recruitment Process

The HR recruitment process can be shown in Figure 1. Job applications from the

different branches are accepted by the Officer-in Charge (OIC) in each branch. The OIC

then sends the resumes to the HR department in the head office for the resume

screening process where the applicant is evaluated if he or she has experience in sales

especially in the Telco business. After the resume screening, the HR head will schedule
an initial interview for qualified applicants in the head office. The interviewee will be

asked series of questions such as their demographics, place of stay, previous

employment and their salary duties and responsibilities in the their past job and the

reason why they want to apply for their desired position. At the last part of the interview,

the interviewees will be asked to demonstrate on how will they market their own mobile

phones to know their communication skills and customer relations. The HR head also

stated that they usually hire applicants who have experience in the telco industry since

they are already familiar with the product specifications, but mentioned they are also

open to accept for interested applicants with potential.

After the initial interview with the HR head, qualified applicants will then be

scheduled a final interview with the Operations Manager, where there will be another

screening process. Afterwards, applicants will be asked to comply with several legal

requirements to complete their admission to the company. This is the final stage for

acceptance in the company but not for regularization. All employees regardless of the

position will undergo the same recruitment process in order for them to grow with the

company and become familiar with its operations. There are no examinations in the

recruitment process since these will be administered during their training. Accepted

applicants will undergo two weeks of training and another 5 months of contractualization

before being a regular employee. The next step the newly hired employees will face is

the training phase, which will be discussed in the succeeding chapter.

II. Training

 Training is an essential component not just in the recruitment process for Flasher

Telecoms, but also in every organization. This stage is where new employees learn the

basic operations of the company and are taught ways on how they can resolve any

unforeseen events in their daily work environment. After the recruitment process, they

will undergo two weeks training which will take place in the head office for a week and in

the branch they will be assigned in the second week.

For the first week of training, an HR officer will orient the newly hired employees

with the overview of the company, its vision and mission, organizational structure and

departments. The HR officer will also conduct a series of training modules discussing

the daily operations in each branch and specialized training for each position they are

assigned, which includes their duties and responsibilities as a Flasher employee.

Another training module also discusses the different products the company is selling so

that the new employees will be familiar with what they will be marketing and at the same

time, will be ready for any questions a customer might ask. Examinations will be

administered after each training module in order to determine if they have sufficiently

understood the training conducted.

When the employee passes the first stage of the training process in the head

office, he or she will be then deployed to his or her assigned branch for another week of

on the job training. The employee must apply what was taught during the first week of

training. After the week of training, the branch OIC will evaluate the performance of the

new employee, following a set of criteria from 1 to 5 and gives his recommendation to
the roving supervisor, which decides on the extension of the contract, particularly if the

employee is eligible for 5 months contractualization.

Aside from the required training after recruitment, current employees seldom

engage in specialized trainings such as those for personal development. According to

the HR officer, training programs are actually planned for the year but are rarely done

because of problems on branch location and conflict in schedules. Brand

representatives however, sometimes conduct product training in the head office wherein

the HR department will send memoranda to all store branches and invite sales

representatives. Moreover, the company holds an annual team building usually during

the holy week when most of the malls are closed. The team building is usually two days

overnight, where the HR department can also conduct a series of development

trainings.

III. Compensation

Employee salaries vary among different positions in the company. Newly hired

employees who are still undergoing training receives 200 per day as training allowance.

Contractual employees (sales associate) who have not yet completed the 5 month

contractualization period earns according the minimum wage according to the area of

the branch. When they become regularized, their salaries will be based on the minimum

wage but they will receive basic benefits. This minimum wage amount of salary
compensations is also applied to OICs and roving supervisors in each branch; however,

they receive higher incentives and commission from their sales

The employees of the company work 12 hours a day from 10am to 10pm with

one-hour lunch break either from 12pm to 1pm or 11am to 12pm to ensure that there

would still be employees in the store. If needed, the employees will work beyond

working hours but they are still paid with their overtime work. Since this company has its

branch in different malls, they are usually opened even in holidays and weekends. With

this, they are paid more than the usual salary they receive. The employees are given a

choice to choose one day of the week as their day-off. The company discourages the

employees to have their day-off on holidays and weekends since this is where they get

majority of their sales. Salaries are given on the 15th and 30th of the month along with

13th month pay, Christmas and anniversary bonus. They also provide employees with

complete benefits such as SSS and Philhealth memberships. Lastly, to encourage their

employees to do their best and eliminate the principal-agent problem, they will receive

1% commission every time they get to sell and reach their quota. When their daily target

sales are achieved, incentives will be outrightly given which will be shared in by the

employees in the branch.

IV. Termination

Ever since the company started, they have terminated employees for just two

specific reasons: inefficiency and stealing. Since this company is established in selling
cell phones, it is important that the employees are familiar with what they are selling.

They should also be trained on how to talk to the customers and how to encourage

them to buy. Those who always sell way below their quota are given termination memos

because their performance is not productive with regards to the whole company. They

will be given up to three warning memos, and if they still cannot reach their quota, they

would automatically be terminated after the 3rd warning memo. Moreover, employees

who steal the companys property such as cellphones are also given termination memos

because this act would continue if it is not resolved right away. This will lead to

automatic termination and the said company is really strict about this because this is

against their principles.

The memo is composed of the name of the employee, date, reason for

termination, and other minor details. As of today, the highest rate of termination done by

the company is 3 employees per year. However, the company is always ready to hear

the side or explanation of the employee and certain processes will be done for this case

to be just and fair. The involved employee would need to talk to the HR, manager and

other people who are involved in this matter about the situation for this to be done

without bias and have a clear jurisdiction. When it comes to retirements, the company

would let the retiree stay for at least 3 months to train its successor until the successor

would be familiar with the tasks he/she needs to do.

V. Retention
 Almost all of the companys employees have stayed ever since it started. For the

past 12 years, only 20% of the employees have retired. The permanent employees can

stay as long as they want unless they are terminated due to violations or inefficiency.

With this, they are regularly evaluated to ensure productivity and honesty between the

employees. Also, employees in this company really stay until they retire because as

mentioned, they are given enough incentives and benefits and are also treated properly

by the owner.

III. Proposal

3.1 Training

Being one of the top teleperformance companies in the country, carrying most of

the top brands in the industry, it is important that the quality of service provided are the

best in the industry. In order to be the best, more training is required for the employees.

One of the proposal of our group to Flasher teleperformance is the improvement

of their training system, as we can see in the previous section, training and

development is not enough for the company, in the market of gadgets and electronics,

where companies are so competitive that they release new products almost monthly, it

is important that the employees have the knowledge regarding the products that they

are supposed to sell.

 As we know, Flasher currently carries multiple brands under their company, our

proposal would be a quarterly training for the employees depending on the brand they

are assigned to, it is important that we provide them with separate trainings because the

products and innovations that a company has for that certain period will most likely be

different from other brands; therefore, a specialized training session for a specific brand

would be the optimal strategy.

The quarterly training that would be conducted by the company involves an

introduction of the new products of the brand, as well as how the employees would

handle and promote the new products, and we suggest that the HR officer for the

company would ask the help from the specific brands, for them to provide a

representative that would be able to give the employees a better view regarding the

products that the employees will be carrying.

The quarterly training would always be composed of two parts. First will be the

talk that is supposedly to be handled by the company representative, then it is to be

followed by live demonstration of how the employees are to introduce and sell the

products. At every end of the seminar, there will be an evaluation of the employees

regarding the new information and techniques they are presented with during the

presentation to ensure that they will be able to incorporate it in their jobs. Lastly,

evaluation forms of the event will be given out to the employees to collect their

feedbacks regarding their thoughts on the seminar and training. Evaluation forms

should contain the four levels of training evaluation: results, behavior, learning, and

reaction.
 Aside from the quarterly training for the specific brands that the employees are

required to attend, there will also be an annual training series that is to be conducted

around May. This training is to be composed of three parts. First is where the owners

would give them an overview of the companys standing and their performance against

other companies. Second part would be a talk that will be held by someone outside the

company, the speaker would be talking about the different strategies that can be

employed to ensure the companys competitiveness. Lastly would be a breakout

session where employees of a specific branch will be divided into groups and strategize

how they will be able to raise their competitiveness against other companies and how

they will be able to increase sales. After the breakout sessions, the employees need to

present the strategies that they have. These strategies would be pooled together by the

HR, and assessed by the top managers and owners. The outstanding strategies will

then be chosen, and the contributors of the strategy would then present the strategy

and demonstrate how they would be doing it.

Given the aforesaid recommendations with regard to trainings, the HR team

should also consider how the employees will combine their previous knowledge to the

ones they will get to learn after the training sessions. The HR staff should have a

general idea of the background of each employee, and create a work environment that

is not too rigid, so as to support the smooth transition and integration of work

experiences.

In addition, it was mentioned in the company profile section of this paper that the

mission of Flasher Next Generation Tech Corporation is to have branches in all major
malls around the metro. Hence, it will not come to a surprise if they decide to open more

branches around the Philippines, and later on, even set up branches abroad. With this,

employees have to be trained to become global leaders as well. Our group proposes

that employees be given seminars with the sole purpose developing their leadership

skills, and be allowed to have more team-building activities to foster teamwork,

cooperation, and camaraderie among co-workers. Moreover, the HR can also find time

to hold sessions where employees are given sample situations and problems that might

arise in the workplace, and asked them to strategize how they would address them if

they were assigned as the heads of their respective committees. From this, the HR

managers will be able to assess which employees can become leaders without much

supervision so as to promote them into higher positions in the future; while for those

who still lack leadership skills, the HR team can conduct more trainings to help these

employees realize, enhance, and develop their skills and potentials.

3.2 Performance Management

Performance Management and Feedback is one of the most critical areas in HR

Management since it binds the company workforce to become effective and efficient,

thereby effectively reaching business goals. Performance measures insure that

performance deficiencies are addressed in a timely manner through employee

development program, since evaluation forms show whether your employees are

performing under the radar or theyre doing spectacularly. Moreover, employee

behaviors are also channeled in appropriate direction toward performance of specific

objectives because once evaluations tend to refocus employees so that they can get
back on track. Lastly, employees are provided with appropriate and specific feedback to

assist with career development. It somehow serves as a constructive criticism since

they will be able to know their strengths and weaknesses, which will eventually result to

them realizing their full potential. It can also be looked upon as a motivation for them to

strive harder. As we all know, performance management is a way to gage an

employees performance, which might result to an increase in compensation. However,

we should not forget that it can serve as a strong spur for behavioral change and

personal development.

According to our interview, Flasher Telecoms doesnt employ a performance

management system. In fact, they are just sneaking in the evaluation of their employees

whenever the higher ups are having their meetings. Since the company has been

operating for a relatively long period, we believe that its about time that they implement

their own evaluation system.

Making your own performance management and feedback system is a long and

tedious process. As can be seen in the matrix below, it has to answer five different

questions. The first question is regarding how the system will be used. The second is

whether who will evaluate. The third is what to evaluate. Fourth is how to evaluate, and

the last question that we seek to answer is the means of evaluation.

To answer the first question, the system will be used in five different ways. The

first is to facilitate employee development. The company has more than a hundred

employees, scattered along its different branches. Since the HR managers will not be

able to observe the employees day to day performance, itd be best to have an
evaluation system so that they can determine the employees strengths and

weaknesses as well as the specific training and development needed. Since the HR

managers of Flasher rarely get to interact with their employees, this would be a big

help. We also have to note that trainings usually occur only during the team building, so

at least when the team building time comes the HR manager knows what specific areas

the employee has to improve.

The second purpose of the system is to determine the appropriate rewards and

compensation. Since it takes a while before an employee of Flasher get to reap the

benefits, a lot of employees tend to become demotivated thus resulting to resignation. If

were going to look at their turnover rate:

(number of employee separation during a given time period/number of employees)

(5 employees / 117 total employees)

= 0.41666667 or 4.167%

we will get a result of 4.167%. It may seem immaterial, but the goal of an HR is to totally

diminish resignation since it will result to training costs as well as opportunity costs.

Another notable purpose of this system is that it enhances employee motivation.

Motivating an employee is very important since it can result to an increase in

productivity. Not only can it improve employees productivity, it can also lessen

employee resignation. Small things like employee acknowledgement and verbal praises

can really be a big help for the company.

 To facilitate legal compliance is another purpose of performance management.

The company cannot just fire an employee for nothing. They must be able to present an

accurate data which shows that the employee is incapable for the job anymore.

Otherwise, they might be suited for legal charges.

Last purpose of performance management system is to facilitate HR planning

process. Since the employees of Flasher are assigned at different areas, it will be very

hard for the HR managers to direct the focus of the employees in line with the goals of

the company. At least should they be given ample time for some training and

development, the HR already knows the deficiencies of their employees and how to

address them.

The second part of the matrix talks about the one who will evaluate. Although

Flasher company has a relatively big workforce combined, the number of employees

per branch is miniscule. If were going to compute for the employee per store:

(Total number of employees / Number of branches)

(117/32)

= 3.65625 or 4 employees per store

The result would be 4 employees per store, which is not big of a size as compared to

others. Thats the reason why we think that implementing the multi-rater systems or

360-degree feedback system would be feasible. Although this type of feedback system

is time-consuming and costly, it hosts greater overall facilitation of assessment and

development of employee. The supervisor of the branch, their peers, subordinates,

customers as well as their own selves will be evaluated. In this way, the HR managers

of Flasher will be able to get a complete perspective as to how the employees are

performing, given the separation since theyre not working in the same location.

Supervisor of the branch Evaluation

 Customers Evaluation

Subordinates Evaluation
Peers Evaluation

Self Evaluation
 The third part of the matrix seeks to answer as to what will be evaluated. We

think that feedbacks should be both traits and results based. To check if the person via

traits based measure is to check whether he/she fits within the organizations culture.

Traits based would be a good measure for the employee since Flasher is a retail type of

business and they have to interact not only with the customers but with their

subordinates as well. If the employee cannot work well with his/her peers, it will

definitely cause chaos in the branch and the supervisor can only do so well given that

there is no HR manager in sight. Results-based measure would also be a great since

theyre a retail store and what they basically do is to sell. Their exemplary performance

will be exemplified by the fact that they were able to sell beyond their quota. We also

have to note that Flasher gives an incentive whenever the branch achieves their target

sales.

The fourth part helps us how to evaluate the performance of each and every

employee. This evaluation will let the employees realize and think that they are

evaluated fairly. There are two kinds of how to evaluate, it is either by absolute

measurement or by relative assessment. Absolute rating is a kind of rating wherein it is

measured strictly by absolute performance requirements or standards of jobs. While on

the other hand, relative assessment is measured against other employees and ranked

on distance from next higher or to next lower performing employee. It also allows for

comparison of employees but does not shed light on distribution of performance. For

Flasher, as a retail kind of business, we recommend for them to use the both absolute

measurement since performance criteria are clearly defined across the levels of the
rating scale and relative assessment because their co-workers know how other worker

works, they are the ones who sees the performance of a worker everyday. In this

situation, we suggest for flasher to focus more on the absolute measurement in order

for them to perform well, employees should know what type of rating can be expected

for their performance. It will only be fair for an individual to be evaluated absolute

measurement compared to relative assessment because there will be competitions and

biases to the evaluation if we use the relative assessment. Also, conflicts may tend to

arise if they will use relative assessment.

The last part is the means of evaluation. There are different kinds of

measurement. It includes graphic rating scales, weighted checklists, behaviorally

anchored rating scales (BARS), behavioral observation scales (BOS) and critical

incident method and management by objectives (MBO). All kinds of measurement will

help flasher improve its employees, but to be practical, we just need to use some of

these since it will be time consuming and costly for the company. Graphic rating scale is

a scale used to appraise the performance of the employees. This scale will motivate

employees to work at their best and it will also improve their skills as a worker. This

method is also easy to adapt in an organization and it is popular. Other reasons for their

popularity include: (1) they are fairly easy to construct; (2) they have a fairly high level of

user acceptability; and (3) they have face validity ( Cardy and Dobbins, 1994 ). In the

same way, behavioral observation scales will also improve employees performance

because behavior is one of the most important characteristic that a person has. With

BOS, employees are evaluated according to how frequently they exhibit the required
behaviour for effective performance, it will test how fast can they improve in a given

work. Critical incident method is also a suggested method since it will help Flasher

determine that things that was done really well or something that needs improvement. It

also saves time and effort since they do already know the things that need to be

improve.

Graphic Rating Scale

Behavioral Observation Scales (BOS)

Critical incident method