Chapter III
Chapter III
Chapter III
CEO
Manager Manager
(Production) (Marketing)
President
(CEO)
XYZ
Company
CEO
Electronics ---------------------------------------
Division
Home Good
------------------------------------------------
Division
Yummy
Snacks -------------------------------------------
Division
One advantage point of the matrix structure is the flexibility and the balanced decision-
making (as there are two chains of command instead of just one).
however, its disadvantage would be complexity which can lead to confusion among employees.
The conflicting orders from multiple sources may lead to confusion and increase ineffectiveness and
conflict. Some staff specialists or personnel may exert direct authority over the line personnel, rather
than exert advice authority.
Under these considerations, therefore, the structure can never be permanent. It is subject to
review and change, if necessary. Changes may be triggered by heightened competition, changes in
costumes behavior, people movements, restructuring, reengineering, streamlining, reorganization, and
other reasons.
From stability
to High
Performance
From Chaos to
Stability
SUMMARY
Every business organization goes through the stage of chaos. In the case of Mr. Chua’s grocery
business, it’s natural if it goes through a stage of chaos in it’s initial stage. The trick is to provide an
environment out of chaos that favors stability. But given his patience and dogged determination, his
business will go up to the second stage of stability and ultimately, high performance.
There is no simple formula. Real organizational development requires commitment and hard
work. Also, initiatives to eliminate waste, improve quality, provide better customer service, people
empowerment, continued improvement, can lead to a foundation of organizational stability and
eventually high performance.
If Sole proprietorships
It partnerships
Get Specific Clearances
It Cooperative
Step 4 Step 3
Other Registration Requirements
Step 5
Step 1
• For single proprietorship, register with the Department of Trade and Industry (DTI) for business name
• For Partnerships or Corporation, register with the Securities and Exchange Commission (SEC ) for Certificate
of Partnership or corporation
• For cooperatives, register with the Cooperative Development Authority (CDA)
Step 2
• Apply for business permit and license from the city/municipality where the business is to be located
Get sector specific Clearances. For example
- Travel Agency – Department of tourism
- Food and Cosmetics – Food and Drug Administration (FDA)
- Pawnshop – Bangko Sentral ng Pilipinas (BSP)
- Learning Centers – Department of Education (DepEd)
- Woodcrafts/furniture – Department of Environment and Natural Resources (DENR)
Step 3
• Register with Bureau of Internal Revenue (BIR) District Office where the business is to be located for
Authority to Print Invoice and Book of Journal.
Step 4
• Other registration requirements
Register your business with the following offices for compliance to good employer – employee relationships,
incentives and benefits, and social, community, and environmental responsibilities
- Social Security System (SSS)
- Department of Labor and employment (DOLE)
- Philhealth
-Pag-ibig
- Department of Environment and Natural Resources (DENR)
Step 5
Start the business