COMPANY CULTURE PRACTICES AND ITS EFFECTS TO THE SELECTED EMPLOYEES AT MT. KITANGLAD AGRI-VENTURES, INC. A CASE STUDY Presented to the Faculty of the Expanded Tertiary Education Equivalency and Accreditation Program Capitol University Cagayan de Oro City In Partial Fulfillment of the Requirements for the degree Bachelor of Science in Business Administration major in Human Resource Management VALFRED L. AÑABIEZA April 2023 2 APPROVAL SHEET This paper is entitled “COMPANY CULTURE PRACTICES AT MT. KITANGLAD AGRI-VENTURES, INC.”, prepared and submitted by VALFRED L. AÑABIEZA in partial fulfillment of the requirements for the degree BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION major in Human Resource Management has been examined and is recommended for oral examination/defense. ROMEO B. MIÑOZA, JR., DM Adviser ________________________________________________________________________ PANEL OF EXAMINERS Approved by the Panel of Examiners in partial fulfillment of the requirements for the degree BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION major in Human Resource Management with a grade of ______________. ALDRICH S. PALARCA, DM, FRIEdr Chairman ROMEO B. MIÑOZA, JR., DM Member GIOVANI N. OCLARIT Member ________________________________________________________________________ Accepted and approved in partial fulfillment of the requirements for the course BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION major in Human Resource Management. ALDRICH S. PALARCA, DM, FRIEdr Director, ETEEAP 3 ACKNOWLEDGMENT This paper was made possible with the guidance and support of people who helped in its accomplishment. Capitol University through the office of the Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP) for his acceptance in the university; Special thanks to the Mt. Kitanglad Agri-Ventures, Inc. for supporting & encouraging him to pursue his desire to earn a baccalaureate degree in business; Sincerest gratitude is also given to his adviser Mr. Romeo B. Miñoza for his guidance, meticulous scrutiny, scholarly advice & suggestions and patience in working with him on this paper; To the Panel of Examiners headed by Dr. Aldrich S. Palarca, for their valuable comments and suggestions which led to the enhancement of this manuscript; Deep sense of gratitude to his family especially his wife for her constant encouragement and support for the realization of this paper; Lastly, to our Almighty God, for providing the author with the wisdom, knowledge and the resources needed to come up with this paper. God bless all of you. 4 DEDICATION I wish to dedicate this dissertation to my loving wife, Mrs. Elgie Añabieza She taught me to persevere and prepared me to face the challenges with faith and humility. She was the constant source of inspiration to my life. She is always there to give me strength and support me to strive to achieve my goals in life. 5 TABLE OF CONTENTS TITLE PAGE 1 APPROVAL SHEET 2 ACKNOWLEDGMENT 3 DEDICATION 4 TABLE OF CONTENTS 5 LIST OF FIGURES 6 I. Introduction 7 II. Rationale of the Study 8 III. Company Background 9 IV. The Case Presentation and Analysis V. The Situation 10 Statement of the Problem 13 Objectives 14 Areas of Consideration 15 Alternative Courses of Action 18 Recommendations 20 Bibliography Curriculum Vitae 24 26 6 LIST OF FIGURES Figure 1 MKAVI Christmas party with the 8 Chief HR Officer Asia-Pacific Division Figure 2 Family Welfare Committee 10 Figure 3 Packing house employees during 14 Valentine’s Day in a boodle fight 7 I. Introduction A company’s culture is the only truly unique identifier. It is like a finger print, it may be similar to others, but is uniquely distinct to your business. Everything else (products, strategies, marketing, even innovations) can be replicated, but the only truly unique identifiers are the values and norms of the organization – its culture, or personality. A strong culture, in which members agree upon and care intensely about organizational values, can improve business performance by motivating employees and coordinating their behavior towards a vision and specific performance goals that benefit the company. The culture is very vital in every company. It is like an identification card of a company that provides every employee, community and other neighboring companies the quality of image it portrays. A company that gives to prayer and bible-sharing session in a week will be likely to be said as a God-centered company. In same vein, Mt. Kitanglad Agri-Ventures Inc. has also its unique cultures such as Values Sessions, Health and Benefits Package, Team Building, Values Reconciliation Movement (VRM), Discipleship Group Leader’s Conference, Life Transformation Program and many more. Thus, the researcher’s interest to revisit the culture of the Mt. Kitanglad Agri-Ventures, Inc., identify the impact of its culture to the lives of its employees, and make it a model to other players in the industry. 8 II. Rationale of the Study This study was conducted to look into the cultures that have caused significant effect on the lives of employees and their families. It also serves as benchmark to other companies who want to take care of the welfare of their employees by the doing the same. The various programs of the company are not only meant to improve the social and economic well-being of the employees, but also to the spiritual aspect through the values sessions conducted every week. The scholarship program for the dependents of the employees is intended to help build a better future for their children. It is for this reason that this study is conducted to assess the very impact of the cultures of the company towards the lives of the employees and their dependents. Figure 1 MKAVI Christmas party with the Chief HR Officer Asia-Pacific Division 9 III. Company Background Mt. Kitanglad Agri-Ventures Inc. is a producer and exporter of the world market-preferred quality highland sweet bananas at an elevation of 700 meters above sea level located in Patag, Alanib, Lantapan, Bukidnon. It came into existence in the year 1998 by a group of entrepreneurs who dreamed of developing the fertile lands of Bukidnon into an Agri-Venture of export quality highland bananas. From then on, the company moved forward. Two test plots were planted in September 1999 and continued on a staggered basis completing the first 250 hectares planted area with three hundred employees. The company has utilized novel production technologies and practices that enable its Precious bananas consistently maintain the highest quality rating in the Japanese market. Moreover, it has immensely contributed to the economic growth and stability of the municipality of Lantapan by providing substantial employment to its populace. Today, a total of 1,660 employees run the whole organization from Executives down to Rank and File with a total area of 1000 hectares of facilities, packing house plants and banana farms. In addition, the company has also generated programs for the welfare of their employees. This is just a mere spectacle of how the company evolved through the years. 10 Figure 2 Family Welfare Committee IV. The Case Study Presentation and Analysis The Situation Your company culture defines for you and for all others, how your organization does business, how your organization interacts with one another and how the team interacts with the outside world, specifically your customers, employees, partners, suppliers, media and all other stakeholders. Your culture is the formula, the DNA that provides guidelines, boundaries and expectations for your team and your customers, and is the primary platform to inspiring and motivating your people, and is the most powerful resource you have to attract, recruit, hire and retain the highest level of talent to your business. In addition to financial advantage, there are many benefits to having a positive culture within your company. These include: 11 Good (transparent) open communication that helps departments and employees work and collaborate better together towards the achievement of company goals. A shared vision and clear mission across the entire organization, leading to employees working towards common goals. A strong corporate culture of respect among employees, creating enhanced mutual trust and cooperation across the business. Less internal politics, a flatter and more efficient decision-making processes, and fewer disagreements as common vision is aligned across leaders. Less complexity leading to faster execution within an informal control mechanism, leading to the easier achievement of business goals. A strong sense of identification across the organization with shared understanding. Clarity in assisting employees to make sense of their behaviors by providing justification for behaviors. A reduced employee turnover rate with resultant definitive financial and operational advantages The company provides programs such as free health care, Values sessions, Scholarship programs, Values Reconciliation Movement, and etc. to address the needs of its employees. The company lives by its motto, 12 “Happy employee, happy family”, hence, programs are created to help the welfare of the employees. With these at hand, people from outside the municipality of Lantapan are attracted to work in the company. The company also practice its “No discrimination” policy in terms of hiring to ensure that all people are given the equal opportunity for employment. The company allocates P 160,000.00/year to every employee for their hospitalization which can be also availed by their dependents. Another P 3,000.00 every 3 years for their eyeglasses for employees who have poor eyesight. P 5,000.00/year was also given as medicine allowance. This entire health package can be availed through guaranteed letters which will be issued to the employee who requests for such care. Values sessions are done one hour every week to every department and those employees who volunteer to become a DGL (Discipleship Group Leader) will have a regular home visit once a week to follow up his/her spiritual growth together with his/her family. All DGroup leaders are then gathered in a conference which the company hosts to help them become enabled men and women of God in workplace and at home. The Man-Com of Highland Agri-Ventures in Southern Philippines conducts a “boodle fight” to every department to have an atmosphere of equality among employees; to let them know that although they are under 13 their managers, they can be approached easily with no feelings of hesitation. Through the Values Reconciliation Movement, several things were added. The company acquired its own ambulance through the effort of the VRM. Conflicts between management and employees were settled without having the participation of a third-party organization. And, as our government, through our president, declares war against drugs, the company also heeds the call. The company launches LTP or the Life Transformation Program. Employees who were identified by the government to be users and pushers of illegal drugs were enrolled to this program to help them recover from their addiction. Through the help of the Local Government Unit and Non-Government Organizations, the company has successfully helped the lives of 44 employees. All these programs are supported and funded by the company in accordance to their dedication in caring the welfare of their employees. Statement of the Problem This study was conducted to look into the cultures that set apart Mt. Kitanglad Agri-Ventures Inc. to its competition in the industry of how it became a differentiating factor. It further sought to answer the following questions: 14 1. What are the culture practices of the company? 2. What are the effects of the culture practices to the lives of the employees? 3. What possible recommendations that can be proposed to help sustain the company’s culture best practices? Objectives The paper primarily aims to: 1. Introduce the company cultures to the readers. 2. Identify the effects of company culture to the live of its employees. 3. Come up with possible recommendations that can be proposed to help sustain the company’s culture best practices. Figure 3 Packing house employees during Valentine’s Day in a boodle fight 15 Areas of Consideration To further sustain the factors influencing the level of satisfaction of the employees, the following were considered: Manpower 80% of the total populace of Mt. Kitanglad Agri-Ventures Inc. is regular employees which means they experience in full the benefits and programs implemented by the company. 20% of it are casuals in which are limited to the programs which are based on the company policies. The HR oversees the programs and ensuring that the benefits of the employees are properly imposed. Money Mt. Kitanglad Agri-Ventures Inc. has budget for every programs proposed and implemented provided that these activities are of long term existence and do have a great impact on the lives and families of each and every employee. More than half of the employees believe also that the company is one of the best companies to work with in terms of the culture and compensation package, including the benefits. Thus, employees feel job security as no mass resignation is felt by the HR. ₱ 160,000.00/year is allocated for the healthcare of the employee and his/her beneficiaries. Aside from having PhilHealth, this initiative of 16 the company helps the personnel of the company settle the excess of their hospital bills. In scholarship program, ₱ 51,000.00 is budgeted for the college scholars and ₱ 15,000.00 for the high school scholars. These are being replenished yearly and is availed only through reimbursements. Method The management has established the Employee’s Handbook which serves as a guide to the company’s policies and regulations. The handbook also states the following information and qualifications in availing the different programs and benefits of the company. Aside from that, memos are being issued from time to time to keep the employees updated of any changes or announcements in implementing these activities. The series of training conducted both by the HR and the Environment Health and Safety Departments are intended for continuous improvements of all employees. These are in the forms of zero-waste managements, new policies of the management and accident prevention measures. As mentioned, it is the HR department that oversees and handles all the cultures of the company that bears its unique and own identity. They conducted information drive early in the morning to discuss these programs, whether there are changes and also to solicit ideas from their employees. it is vital that the methods of HRD should not hamper any operations in the farms since the company’s product is perishable goods. 17 Machinery Because of the full support of management in terms of monetary aspect, the company does not have any problems in giving all the needed machineries, facilities and equipment for the programs. The company also is engaging in outsourcing. An example would be hospitals and other health care facilities that conduct check-ups and health monitoring for the employees and their families. Management The company’s Man-Com or Management Committee do have frequent meetings to discuss all confidential issues that needs immediate response and approval from the management. Based on the survey, more than 70% agreed that the communication lines are functioning between management and the employees. One culture of the company is establishing the VRM (Values Reconciliation Movement) wherein several employees from different operations elected and chosen to represent their co-workers, meet with the management on a monthly basis to discuss new ideas on how to develop the existing cultural practices of the company. 18 Alternative Courses of Action To be able to further enhance and develop the cultures practiced by the company, the following courses of action are taken into account: 1. Enhance the Regular Information Drive. The HR initiates the “HR Patrol” in which HR staffs do a roaming around the farms and spend time with the employees and have a casual chit-chat of any dilemmas they have in the company. The information drive covers the dissemination of new programs and policies, including attending to the immediate needs of the employees without any more spending efforts to visit the HR office. Advantage: This is vital to keeping the workforce updated and equipped with knowledge in fulfilling their individual tasks and responsibilities. A better understanding of their contribution to the success of the department will enable the employees to gain trust to the management and to the programs they implemented. Disadvantage: Short staffing is the main disadvantage of this ACA since the standard rule is often 1.4 HR staff for every 100 employees. 2. Schedule a Regular Team building. The primary purpose of the conduct of team building is to foster comradeship, teamwork, and unity between Management and employees. 19 Advantage: This will create openness to both parties in terms of communication regarding each and everyone’s work concerns. When a company has good communication between its employees, it can often avoid conflict as employees work through challenges. Companies that are not transparent and do not disseminate information well to everyone, typically have a hard time achieving strong business results, or even staying in business. Disadvantage: If the event will be held outside the company, time management would be the disadvantage. The company is far from resorts and the travel alone would literally consume time which shortens the event proper. 3. Connect with the Local Government Unit. The LGU plays a great role in managing people not only to the employees of the different private sectors but also to its whole population coverage. There are programs already developed by the LGU which only needs support from the major stakeholders of the community. Advantage: Local government is responsible for a range of vital services for people and businesses in defined areas. Among them are well known functions such as social care, schools, housing and 20 planning and waste collection, but also lesser known ones such as licensing, business support, registrar services and pest control. Disadvantage: A major disadvantage of this ACA is the increase in numbers of recipients for the said programs even if they are not employees of Mt. Kitanglad Agri-ventures, Inc. As a result, the company would resort to limitations and exclusivity of its programs which could lead to negative feedback from the people. Recommendations After thorough observation of the data gathered from the survey, more than half of the employees are satisfied in their job when they claim that the company is one of the best companies to work with because of its programs and benefits offered. Also, it shows that the company needs to develop its interpersonal communication between Management and Rank and File. From this finding, the researcher came up with this recommendation. ACA #1 Enhance Regular Information Drive The objective of the company is to supply the best quality bananas in the market, and to provide a good quality of life for its employees. The latter needs improvement by also hearing from the employees of how the company can 21 address their needs, and this can be best achieved by developing communication between employee and management. ACA #2 Regular Team Building is the process of creating a team that cohesively works together towards a common goal. The importance and main purpose of team building is to create a strong team through forming bonds and connections. Creating these bonds through team building is very beneficial to businesses and organizations. The benefits of team building include increased communication, planning skills, employee motivation, and employee collaboration. Fun activities that help people see each other in a different light allow them to connect in a different setting. People on your team are asked to think about the implications of these activities at their workplace. ACA #3 Connect with the LGU (Local Government Unit) The main goal of businesses is to make a profit and governments' goal is to ensure economic stability and growth. Both of them are different but very codependent. For this, the government and organizations or businesses always try to influence and persuade each other in many ways for various matters. LGUs play a major role in a community's development, provide the links between the people and government, address its community's problems and concerns, enforce policies and hold influence over its communities. 22 Table 1 PROGRAM OF ACTIVITIES AREAS OF TIME OBJECTIV FRAME ES ACTIVITY CONCERN PERSONS RESPONSI KPI BUDGET BLE Conduct “pulong- To Decreased pulong” to establish a number of inform concrete, Immediate REGULAR employees Quarterly and INFORMATI of any meeting transparent ON DRIVE every year. communica updates in policies and tion within programs the of the company. company. employees superiors, Rank and ₱ 5,000/ File, HR month Departmen t. having negative thoughts towards the company. 23 To induce openness of communica tion Create fun ₱ 30,000 / between activities REGULAR that foster employee TEAM BUILDING relationshi rank-and- All team file with personnel building Develop per activity. efficiency in superiors, department (transporta workplace. and to . tion, foods, Once a year their ps in a different promote perspective venue, etc.) the company’s care to its employees. Increase in PARTNERS All To help activities of secure the HIP WITH LGU that LGU needs support. Quarterly All employees’ personnel ₱ 10,000 / positive of the activity work employees’ welfare needs. company performanc e 24 V. Bibliography a. Journals/Magazine Perrine, John. 2013. Employee’s Handbook. Davao City, Philippines. b. Internet Sources: a. https://www.linkedin.com/pulse/why-company-cultureso-important-business-success-peter-ashworth/ b. http://smallbusiness.chron.com/key-functions-hrdepartment-31206.html. Retrieved from Lisa Mooney. Retrieved on December 26, 2017. c. https://www.indeed.com/career-advice/careerdevelopment/hr-to-employeeratio#:~:text=The%20standard%20rule%20is%20often%2 01.4%20HR%20staff%20for%20every%20100%20employe es. d. https://www.teambonding.com/6-reasons-for-teambuilding/#:~:text=Team%20building%20is%20the%20pro cess,beneficial%20to%20businesses%20and%20organizat ions. 25 e. https://www.local.gov.uk/about/what-localgovernment#:~:text=Local%20government%20is%20respo nsible%20for,registrar%20services%20and%20pest%20co ntrol. f. http://www.whatishumanresource.com/humanresource-development Retrieved from George Elton Mayo. Retrieved on December 26, 2017. 26 Curriculum Vitae Your latest Picture here MARIA TAMPULANA E-mail address : mariatampulana@yahoo.com PERSONAL DETAILS: Date of Birth : Place of Birth : Home Address : Civil Status : EDUCATIONAL BACKGROUND: College High School Elementary WORK EXPERIENCE: From latest to oldest PROFESSIONAL AFFILIATION: