michael entrep.docx

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1. Why is corruption an unwanted activity in a countrylike the Philippines?

Elections are like a sponge, it sucks up all the money, most of it

from corruption.

Among the very first lessons in business is that "THERE IS NO SUCH

THING AS A FREE LUNCH". Somebody is bound to pay, Always. Especially

when it comes to corruption. So how does corruption get to us? Let's count theways.

1. Loss of Government Revenue

The first victim of corruption is government revenue. In a

developing economy like the Philippines, this can be extremelydebilitating. The continuing budgetary deficit of the governmentresults into cutbacks in expenditures for much needed socialservices.

2. Education

The gap of classrooms in public elementary schools isestimated to be about 40,000 this coming school year. The case is

even more pathetic, as the lack of qualified teachers furtherconfound the problems. While student population keeps ongrowing year after year, these gaps in classroom, books and

teachers is widening. What do these lead to? Poor qualityeducation of the future citizens of the Republic furtherundermining their prospects of contributing to nation building.THAT IS A VERY HIGH PRICE TO PAY FOR CORRUPTION.

3. Infrastructure

With tightening sources of funding for infrastructuredevelopment, government has to resort to partnership with theprivate sector. A public good like roads, bridges, ports andairports will necessarily be charging user fees to be able to earn

profit and recover capital. Nothing wrong with because he whobenefits should share the cost. But a lot of these projects requireperformance undertaking from the government to be financeableto lenders. This results into the contingent liabilities of thenational government burgeoning the levels no one wants to evenfind out. Remember the NAIA III Terminal? an edifice that can't be

operated until now. The MACAPAGAL BOULEVARD which caneasily enter the Guinness Book as the world's most expensive


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boulevard? THE SMOKEY MOUNTAIN PROJECT where almost abillion of OFW's money was invested and has not been repaid

until now? Last count in 2003, it stood to over P500 Billion.Thats about over 30,000 pesos per household. THAT IS NO

LOOSE CHANGE TO PAY FOR CORRUPTION.

4. Environment

Because government resources are constrained,environment protection programs are neglected. We passed theClean Air Act and yet we cannot put our acts together in ensuring

clean air. The law is toothless because the government has nomoney to invest in monitoring equipment. Even garbage it cannot

collect. Remember the PAYATAS TRAGEDY? Meanwhile, to beable to generate power and run our heavy industries, lessdesirable Plants are allowed to be established. ASK THE PEOPLE

from CALACA, BATANGAS, PAGBILAO QUEZON, and SUALPANGASINAN, all sites of COAL FIRED POWER PLANTS thatcontribute to withdrawals from our deposit of breathable air,potable water and livable communities. The resource balance ofour children's future is rapidly depleting, A COST OFCORRUPTION THAT WE MAY NEVER BE ABLE TO ACCOUNTFOR.

5. Government Debt and Poverty

Again due to budget deficit, government keeps on

accumulating debt, which at end of 2003 stood at over 2.4 trillionpesos. Thats over 30,000 pesos for every Filipino man, womanand child. At an average interest cost of 10% per year for bothshort and long term loans, that is equivalent to a staggering P240Billion in interest payment alone every year. Thats the amount ofmoney taken away form the mouth of the poor, who account to

more than half of the Philippine population. TURNING OURBACKS FROM OUR MARGINALIZED CITIZEN IS A STEEP PRICETO PAY FOR CORRUPTION.

6. Political Patronage

Corruption doesnt prosper without protection. Those whopractice realize that to keep themselves in their lucrative posts,somebody politically powerful should be able to stop any attempts

to cut him from illicit money flow. In return, he lavishes hispatrons with gifts. Gifts in no small terms, which further corrupt

him and his patron. His patron, in order to accumulate more gifts


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has to increase his influence. To increase his influence, he needsto milk his corrupt benefactors. And it goes on deeper and deeper.

Elections are like a sponge, it sucks up all the money,

most of it from corruption. Election in the Philippines are nothing

but patronage politics. How else does one explain the millionsspent in a campaign in exchange for a few measly thousand pesosin the salary of a public servant? There is only one explanation Ihave, THERE IS NO SUCH THING AS A FREE LUNCH, SOMEONEIS BOUND TO PAY FOR IT.

How do campaign contributors expect to recover theirinvestments? In the form of political protection to allow them to

continue with their illegal activities. In the form of riggedgovernment contracts. In the form of economic rents taxpayerseventually pay for.

7. Crime

Corruption corrupts and the deeper one gets into themire, the more desperate one becomes in defending the well fromwhere he draws his booty. He will be prepared to use trick, treat

and threats to keep his business. And since corruption, like stalefood attract flies and worms, criminal syndicates are not very farfrom them. So do their violent means of doing business.

The problem with the proliferation of illegal drugs can be

linked solidly to corruption. How else do drug lords and pushersdo their business under the noses of law enforcers and localgovernment officials except that they pay-off this public servantsor work in cahoots with them. Remember Mayor Mitra of QuezonProvince? He was caught red handed transporting a ton of shabuusing the town ambulance.

This social ill has led to the commission of many aheinous crime is prospering and multiplying in every Barangay ofthis country because of corruption. RAPES, MURDERS, and

KIDNAPPING FOR RANSOM ARE TOO MUCH TO PAY FOR

CORRUPTION.


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8. High Cost of Doing Business

It is sometimes beyond our imagination for abusinessman to spend three full days in the crowded city hall of a

highly urbanized city trying to get a business license. And he was

just going to buy and sell eggs. How much more if he wants tooperate a industrial project. If there are 20 government offices heneeds to go through for various permits, licenses, certificates,approvals and signatures, he needs an entire army of fixers tohandle them. Precious hours are lost among senior officers of thefirm who have to wine and dine to the whims and caprices ofgovernment officials. Remember the stinking IMPSA and PIATCOdeals?

Those companies whose code of conduct does not permitthem to provide bribes and pseudo-bribes end up spending tons

of money just to end up deciding to leave the country inexasperation.

On the other hand, many of those who stay to do

business have gotten used to government people scratching theirheads as they show up in their offices asking for all sorts of giftsfor every known relatives of a mayor, congressman, senator,department secretary, bureau director or chief of police. Whatdoes the businessman do? He just passes on to his customersthis extra cost incurred in doing business in the Philippines.

Remember the Power Purchase Adjustment (PPA)? This is one

bloody scheme that sucks us dry!!!

9. Loss of Investor Confidence

As Judge W.H. Heath said, if we cannot manage ourmoney and assets, how can we be expected to manage otherpeoples money? Investors demand that there be a reasonablelevel of assurance that they will get their investment back. Thattheir investment will in fact make money. And that it will not betaken over by political forces.

It becomes extremely challenging to attract investors to dobusiness in a country where a fugitive from the FBI and convictedpedophile gets elected in Congress. Or where tax evasion casewith very clear outcomes is lost to technicalities.


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Multilateral donors find it hard to give us loans and

technical assistance grants when they know that a large portionof their money will be used to line up the stomachs of politicians.They will have to invest in additional personnel, incur additional

costs just to watch us spend their money. Every time we submitreceipts they spend thrice the time just verifying whether they aregenuine or not. This is the only country in the world whose

AUTHENTIC DOCUMENTS (as declared and sealed fromMalacanang) has one year expiry date. Believe me it can be tiring

to do these things.

When many in the International community considers

your country as corrupt, it does not feel good. It does not buy yougoodwill. Jeers and sneers YES. But respect? NO!!! Just look athow we PINOYS are treated in foreign airports. Who would forgetSenate President DRILON being forced to remove his shoes in a

US airport despite showing his Diplomatic Passport. I myself hada very disgusting experience in SCHIPOL airport in theNetherlands (CARLO BUTALID & GRACE CABACTULAN MAYNOT AGREE WITH ME) and at Charles de Gaulle in France. Butcan we blame them? Of course not. There's simply too muchPinoys who are going out of the country with spurious

documents, escorted and facilitated by no less than BID

personnel from NAIA. THAT IS WHAT WIDESPREADCORRUPTION IS COSTING US.

We have only just began counting the cost of corruption.It cost us the prostitution of our political institutions. We havenow hoodlums in uniforms and hoodlums in robes. It costs us

many lives and honor lost to crime. It costs us our self respect.And it costs us lost opportunities for a better future of ourchildren.


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2. What is responsibilities of employees must entrepreneurs

be aware of?

Hiring employees requires more work from you as theemployer than simply placing a job ad, hiring the right person

and training them on their role. You need to be aware of the

Labour Law requirements in terms of the various funds and other

stipulated registrations. The law does not differentiate between

different size organizations, and therefore it is imperative that

SMEs fully understand the implications of all aspects of Labour

legislation.

Salary deductions

Employers may only deduct money from a workers salary if

the worker agrees or if they are required to do so. The provisions

for deductions do not apply to workers who work less than 24

hours a month.

Employers may not deduct money from a workers pay unless

o the worker agrees in writing to the deduction of a debt, oro the deduction is made in terms of a collective agreement,

law (e.g. UIF contributions), court order or arbitration

award.

Deductions for damage or loss caused by the worker may only

be made if

o the employer has followed a fair procedure and given theworker a chance to show why the deduction should not be

made,o the worker agrees in writing, ando the total deduction is not more than 25% of the workers net

pay.
http://www.entrepreneurmag.co.za/category/advice/staff/hiring-employees/http://www.entrepreneurmag.co.za/category/advice/staff/hiring-employees/


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Employers must pay deductions and employer contributions

to benefit funds (pension, provident, retirement, medical aid, etc.)

to the fund within 7 days.

What is UIFUIF stands for Unemployment Insurance Fund and you

need to register for it, whether or not you employ staff. It applies

to all employers and workers (except those working less than 24

hours a month),learners, public servants, foreigners working on

contract, workers who get a monthly State (old age) pension and

workers who only earn commission. The fund makes short-term

provision for individuals who become unemployed, or are unable

to work because of illness, maternity or adoption leave. It also

provides financial relief to the dependants of deceasedcontributors.

As an employer it is your responsibility to register with UIF

and make the monthly payments. These include a 1% payment

from you (based on your employees individual salaries). Each

individual employee needs to make a further 1% payment, but it

is your duty to deduct this amount from their salary and pay it to

UIF, together with your contribution, on a monthly basis to SARS

if you are registered for PAYE or directly to the UIF if you are not.You can register your business by completing a UF8 form and

each new employee needs to be registered using a UI-19 form.

These can be obtained from the Department of Labour.

What is COIDA

COIDA stands for the Compensation for Occupational

Injuries and Diseases Act and being registered for it works in your

favour. It is based on a no-fault system which means employees

are entitled to compensation regardless of who caused the injuryor illness. But it also exempts you from liability for injuries or

diseases contracted by your employees in the course of their

work. In other words, employees cant claim damages from you in

those events. Instead, COIDA allows them to claim compensation

for total or permanent disablement and death as well as

reasonable medical expenses arising out of injury for two years.


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You are required to pay the employee 75% of their normal salary

for three months during the time that they are injured or ill but

the fund pays you back this entire amount and covers all the

relevant medical expenses.

If you are not registered, however, you are not indemnified.

Getting registered involves submitting a WAs2 form, together with

a copy of the registration certificate from the Registrar of

Companies, or your ID document, if you are a sole proprietor.

Every year before 31 March you will need to submit a statement

of earnings paid to your employees. You will also be required to

pay an assessment tariff, which is fixed according to your class of

industry.

If an employee gets injured during the course of their work

or falls ill as a result of their work, they can claim from the

Workers Compensation fund. Dependants of employees can claim

if a family member dies from an accident or disease. Employees

wishing to claim will need to be furnished with one of the WG30,

WAs2 or WAc1(E) forms, which they need to submit to the

Compensation Commissioner for compensation.

How does Maternity Leave Work?

The law protects women against unfair discrimination

arising from any form of prejudice. An employer may not ask a

candidate who applies for a job if she is pregnant, nor if she is

planning to start a family at any stage. If you do, she could argue

that you are discriminating against her. Equally, she is in no way

obliged to disclose her pregnancy when applying for a position.

The bottom line is that it has nothing to do with the candidates

ability to meet the requirements of the position. And nothing

stops her from resigning once she has returned to work after

taking maternity leave. She has rights regardless.

The Basic Conditions of Employment Act stipulates that an

employee is entitled to four months unpaid maternity leave. All

that is required is a notification by the employee that she is

pregnant, accompanied by a doctors certificate. This leave should


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start four weeks before the expected date of birth, or when a

doctor or midwife certifies that leave is necessary for the health of

the mother or child. An employee must notify her employer in

writing of the date on which she wants to start maternity leave.

She may not work for six weeks after delivery, unless she isdeclared fit to do so.

An employee who has a miscarriage during the last three

months of pregnancy or who bears a stillborn child is also entitled

to six weeks maternity leave, whether or not she has started

maternity leave at the time. Companies in South Africa are not

obliged by law to provide paid maternity leave. A female employee

who works for a company that does not offer maternity benefits

can claim from the Maternity Benefit Fund if she has been

contributing to the Unemployment Insurance Fund (UIF).

An employer who pays maternity leave does have some

rights, however. Paid maternity leave is a benefit, and the

company is within its rights to conclude a contract with the

employee stating that if she does not return to work for at least

one year following her confinement, she will be obliged to return

the salary she earned during her maternity leave.

South Africa has no paternity leave provisions in place, but

workers who have been employed at a company for longer than

four months may take three days paid family responsibility leave

during each year of employment.

Family Responsibility Leave

Workers may take up to three days of paid leave a year to

attend to certain family responsibilities. The provisions for family

responsibility leave do not apply to workers who work less than:

o Four months for their employero Four days a week for one employero 24 hours a month.Family responsibility leave expires at the end of the annual

cycle. Employees may take family responsibility leave:


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o when their child is borno when their child is sicko in the event of the death of a:

o spouse or life partnero parent or adoptive parento grandparento child or adopted childo grandchildo sibling

Employers may require reasonable proof of the birth, illness

or death for which a worker requests leave.

OvertimeThe amount of overtime a worker may work is limited.

Workers must get 1,5 times their normal hourly pay or paid time

off in exchange for overtime. Alternatively, a worker may agree to

receive paid time off or a combination of pay and time off.

The section of the Basic Conditions of Employment Act that

regulate working hours does not apply to:

o workers in senior managemento sales staff who travel and regulate their own working hourso workers who work less than 24 hours in a montho workers who earn more than R115 572 per yearo workers engaged in emergency work are excluded from

certain provisions.

Workers may not work:

o overtime, unless by agreemento more than 10 hours overtime a week (collective agreement

may increase this to 15 hours per week for up to two

months a year)

o more than 12 hours on any day.


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Employee Pay Slips

Each time workers are paid, employers must give them a pay

slip containing certain details. Employers must give workers the

following information in writing when they are paid:

o Employers name and addresso Workers name and occupationo Period for which payment is madeo Total salary or wageso Any deductionso The actual amount paido If relevant to the calculation of pay:

oEmployees pay and overtime rates

o Number of ordinary and overtime hours workedo Number of hours worked on a Sunday or public

holiday

The total number of ordinary and overtime hours worked in

the period of averaging, if a collective agreement to average

working time has been concluded

Public Holidays

Workers must get paid time off for public holidays, but if they

agree to work, they must be paid double their normal daily wage.

The provisions for public holidays do not apply to -

o senior managemento sales staff who travelo workers who work less than 24 hours a monthWorkers must get paid time off for any public holiday that falls

on a working day. Working on a public holiday is by

agreement only. A public holiday can be exchanged with another

day by agreement. A public holiday cannot be counted as annual

leave.


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Employee Sick Leave

Workers may take the number of days they would normally

work in a six-week period for sick leave on full pay in a three-year

period. Employers may insist on proof of illness before paying a

worker for sick leave. The provisions for sick leave do not apply to

-

o workers who work less than 24 hours a montho workers who receive compensation for an occupational

injury or disease

o leave over and above that provided for by the Act.During the first 6 months of employment, workers are only

entitled to one day of paid sick leave for every 26 days worked. An

employer may require a medical certificate before paying workers

who are absent for more than two consecutive days, or who are

often absent (more than twice in an eight-week period).

Staff Working Hours

Basic Conditions of Employment laws set maximum working

hours and minimum rest and break periods for workers. The

section of the Act that regulatesworking hours does not apply to:

o workers in senior managemento sales staff who travel and regulate their own working hourso workers who work less than 24 hours in a montho workers who earn more than R115 572 per yearo workers engaged in emergency work are excluded from

certain provisions.

The maximum ordinary hours per day for someone who works

one to five days per week is nine, the maximum amount of hours

per week is 45. For those who work more than five day per weekshould work a maximum of eight hours per day and 45 hours per

week. Workers may agree, in writing, to work up to 12 hours a

day without getting overtime pay. However, these workers may

not work more than


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o 45 ordinary hours a weeko 10 hours overtime a weeko five days a weekWorkers must have a meal break of 60 minutes after five

hours work. A written agreement may:

o reduce meal intervals to 30 minuteso eliminate meal intervals for workers who work less than 6

hours a day

Workers must have a rest period of 12 hours each day; and 36

consecutive hours each week (must include Sunday, unless

otherwise agreed).

Workers working between 18h00 and 06h00 must:

o get an allowance, oro work reduced hours, ando have transport available to them.

Skills Development Levies

Employers must pay 1% of their workers pay to the skills

development levy. The money goes to Sector Education and

Training Authorities (SETAs) and the Skills Development Fund to

pay for training. The Skills Development Levies Act applies to all

employers except

o the public service;o religious or charity organizations;o public entities that get more than 80% of their money from

Parliament; and

o employers:o

whose total pay to all its workers is less than R 250000 per year; and

o who do not have to register according to the IncomeTax Act


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Employers who are required to pay the skills development

levy must register with the South African Revenue Services

(SARS). Employers must pay 1% of all their workers pay to the

skills development levy every month. Employers must pay the levy

to the South African Revenue Services (SARS) by the seventh dayof each month. Employers who do not pay will have to pay

interest on the money they owe and may also have to pay a

penalty.

What is PAYE

All employers are required to deduct Employees Tax from

their salaries. The amounts deducted must be paid by the

employer to SARS on a monthly basis. The process of deducting

or withholding tax from remuneration as it is earned by anemployee is referred to as Pay-As-You-Earn (PAYE).

Employers are required to:

1. Deduct the correct amount of tax from employeesremuneration.

2. Pay this amount to SARS monthly, ensuring SARS receivesa Monthly Employer Declaration (EMP201).

3. Reconcile these deductions and payments with thecompletion of the interim and annual EmployerReconciliation Declarations. During the reconciliation

periods, employers are required to submit an Employer

Reconciliation Declaration (EMP501) confirming or

correcting the PAYE, SDL and UIF declarations per

EMP201s submitted, the payments made and the tax values

of the Employee Tax Certificates [IRP5/IT3(a)].

4. Issue tax certificates to employees5. An employer must issue an employee with an IRP5/IT3(a)

where remuneration is paid or has become payable and

from which Employees Tax was deducted. The IRP5/IT3(a)

discloses the total employment remuneration earned for the

year of assessment and the total deductions. IRP5/IT3(a)

certificates must be issued to employees during the annual

Employers tax season.


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Seek professional advice

There is a lot to keep track of once you become and

employer. It is advisable to call in an expert. You can use the

services of a suitable experienced and qualified HR consultant

who can help to set up the principles and processes of the above,

and then work on an ad hoc basis only as and when needed

reducing the cost of a full-time HR manager.

3. Do you think entrepreneurship is not for everyone? Why or

Why not..

I think anyone that has their own business can be

"entrepreneurial". If it is on the side, or for fun or extra income or

the like, it is again entrepreneurial in nature. That is not being an

entrepreneur though. Until it is your sole source of income, by

choice, for an extended period of time - it is just an

entrepreneurial hobby or investment. I do think someone that is

truly self employed though is an entrepreneur. Steve Blank calls

them small business entrepreneurs. Again though, that's

assuming it is how they derive their primary income. If it's owninga small flower shop they work in every day, then great, they are a

small business entrepreneur.

4. What tools are used in developing strategy ?

Strategic planning is an important activity for any

business. There are a variety of analytical tools available to

planners that can be readily implemented by both novices and

experts alike. These tools can help the planning team focus on

those activities most important to the organization and ensure

that the plan is designed to meet specific business needs.

SWOT


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The SWOT analysis is a commonly used analytical tool used

during the strategic planning process. It is a simple tool that is

basically a brainstorming process. SWOT stands for strengths,

weaknesses, opportunities and threats. Strengths and

weaknesses are internal to the organization. Opportunities and

threats are external. During the strategic planning process the

team leader will lead the planning group through a brainstorming

exercise covering each of these elements of the SWOT. Once done,

the lists will be prioritized and the items generated will serve as

an important input to the development of goals, objectives,

strategies and tactics.

Scenario Planning

Scenario planning may sound complicated, but it is

actually a very simple process that companies use during

strategic planning to help them consider various impacts on their

business, both positive and negative. By considering things that

might happen, the planning team is able to anticipate various

impacts and plan for those impacts proactively.

Five Forces Analysis

Business expert and Harvard Business School professor

Michael Porter developed five forces analysis in the late 1970s as

a way for strategic planners to consider the various impacts on

their organization from both internal and external perspectives.

During five forces analysis the planning team considers impacts

from five sources: bargaining power of customers, bargaining

power of suppliers, threat of new entrants, threat of substitute

products and rivalry among competitors.


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Submitted By:

Modina, John Michael D.

BSHRM A-22(am) Submitted To:

11-0043 Prof. Nicholas Cage Purog

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