Chapter 4

The Company and Its Internal Environment

Analysis of the Vision and Mission

Vision

LEIAAI aims to be better than what they are today and to be the most

sought after aviation school not only in the Philippines but around the world.

Individuals are produced by LEIAAI with the utmost commitment, dedication,

professionalism, competence, and skills by the year 2020. Commitment and

dedication in a way where the individuals that they produce are engaged to the

tasks and obligations that are given to them and restrict them from doing anything

that excludes to what they are obligated to do. Professionalism, of course, will

always be a part of the values that are required, taught, and practiced in LEIAAI

for this trait helps their individuals practice their chosen endeavours in life and

improve them to perform with their full potential. Competence, on the other hand,

helps the individuals to increase their efficiency with their chosen career and

helps them be more successful to the tasks given to them. With the proper

amount of competence, these individuals are able to face challenges that are

almost too unsolvable and come up with a plausible solution. Lastly, skilled

individuals are produced by LEIAAI with the proper amount of training and

learning with the help of professionals who has already proven themselves to be

credible individuals in the field of aviation. With the help of these factors that are

to be provided by LEIAAI, it is possible for them to be the most in-demand or

27
sought after aviation school around the Philippines or even around the world

because these factors will help other people understand that LEIAAI only aims to

provide services with the utmost respect and pure dedication to the aviation

industry.

Mission

With the help of professionals, technology, and guaranteed safety,

LEIAAI’s mission is to train and lead individuals to the right path of the aviation

industry. They are lead to the path where the right amount of information and

educational provision is given properly to their students. They train them to be

better individuals and better professionals to their chosen careers.

Professionalism is one trait that LEIAAI requires to the whole organization to

serve as guide and role models to their students. This helps them build up their

interest and practice their tasks to be better with their chosen careers. The

highest standards of technical expertise are also provided by LEIAAI, of course,

to help students perform well, understand the proper usage of the different

technical knowledge needed, and carefully perform to guarantee a safe

environment and avoid unexpected accidents because LEIAAI is highly

committed to safety. With these offerings, LEIAAI makes sure that they will

guarantee customer satisfaction to earn the customers’ trust and support for the

school.

28
 Analysis of the Organizational Structure

The type of organizational structure that LEIAAI has is a Functional

Structure. This type of structure is commonly used by most companies because

this divides the organization into smaller groups according to their specific tasks

and roles to the company. For each department, there is a manager or director

who answers to an executive. Under the admin you can find the finance, building

or facility, admin (Manila and La Union), and human resource. The finance takes

over the cashier and accounting department where all the circulation or records

for financially-related reports are processed. The accounting department of

LEIAAI is headed by Janice P. Bautista who reports directly to the CFO. The

building and facilities is part of the workplace management team who manages

the facilities of the institution, headed by Mary Jean D. Hipol. Human resource is

responsible for making up the workforce of an organization, business sector, or

economy (Wikipedia, 2018). This is where the interviewing, hiring, training, and

recruiting process is handled, headed by Georshiel V. Ballano. She was the one

who provided us with the information that we needed to comply with this study.

On the other hand, under the operations are the training, information

communications technology (ICT), marketing, approved maintenance

organization (AMO), and logistics. The training department organizes programs

to enhance the skills and knowledge of their employees for better performance,

headed by Arnel F. Borres. The ICT covers any product that will store, retrieve,

manipulate, transmit or receive information electronically in a digital form

(Wikipedia, 2018). LEIAAI’s ICT is headed by Carlo Mesajon. The marketing

29
department is responsible for advertising the school and promoting them to

increase sales. This is responsible for other marketing campaigns implemented

by the company; this is headed by Carissa C. Capacia. This division of groups

are very much helpful because it’s easier to find the people needed. It’s

advantageous because employees are grouped by skills and function which

helps them focus on their specific roles and exclude their responsibilities as a

department. But this will cause a lack of inter-departmental communications

where problems and issues within the company are discussed.

Analysis of the Organizational Culture

The organizational culture of LEIAAI is committed with the organization’s

core values, mission and goals. The institution of LEIAAI believes that leadership

makes a huge impact on both the people inside and outside the organization.

They think and act creatively during tough situations and formulate effective

solutions when problems arise. LEIAAI believes that moral uprightness of a

person helps students and employees boost their strict adherence to honesty,

integrity or consistency in their own actions. They promote their students to show

a high-quality level of excellence, professionalism and competence in different

organizational and real life endeavour. They make sure that their students must

be committed, devoted and inspired to their designated tasks (Core Values,

LEIAAI).

The organization, LEIAAI, also displays an outstanding amount of respect

and gratitude towards one another. When a person and another crosses each

other’s paths, they greet each other. Whenever a person, whether student or an

30
instructor passes by, he/she is greeted with a warm smile. LEIAAI’s

organizational culture, as a whole, displays positive values which are helpful and

beneficial to both the people and the organization itself. This is a culture that

most schools should acquire.

Analysis of the Strategy Implemented

The researchers gathered information as to what different strategies are

implemented by LEIAAI. The first one is by the word-of-mouth. The students who

graduated or even those who are still studying in LEIAAI shares the information

they have to their friends, family and acquaintances. This strategy is helpful

especially when the information shared from one person to another is positive.

Here in La Union, news or information about certain events is very easy to

spread, due to the fact that a lot of people know each other not only here but from

different places as well which makes it beneficial for LEIAAI to acquire students

all over the Philippines. 5% of the tuition fee is also give as commission to the

person who referred the student to enrol. The second strategy is by the use of

social media, specifically their Official Website, Instagram, and Facebook

accounts. This tool is very relevant due to the modernization of our society.

Information is easily shared on social media because 63% of Filipinos or 67

million of the total Philippine population of 105.7 million have access to the

internet (philstar.com). The third strategy is by the use of newspaper , this tool

provides a good sense and importance for educational value newspaper is one of

the reliable sources of students because it effectively provides every information

about business, entertainment, politics and many other things. Newspaper is

31
now also part of the modern life, putting many business are willing to just endorse

their business through newspaper specifically under the business section

because a lot of people use to look business section of newspaper when they

want to get to know business which is beneficial to LEIAAI because it could help

them to increase the number of their enrolees. The fourth strategy used by

LEIAAI is Radio which provides the number of different advertising types and is

suitable for any product or services (small business.com). Aside from that, radio

is cheaper that the other advertisement tool because the production cost are

lower (according to marketing consultant, Mike Brassil). The fifth strategy is by

the use of brochures, brochures provide and allow people to glance at the

content and information of the business which makes people is more interested.

Brochure is also where the business shows their achievements and a goal which

attracts people and gives good impression about the school. Lastly LEIAAI

conducted career exposure program in order to introduce the courses they offer

and to encourage student to enrol to their school by means of emphasizing the

advantage and what experience could the school offer.

Functional Analysis

Marketing Management

Marketing means working with markets to bring about exchanges for the

purpose of satisfying human needs and want (Armstrong et. al, 1996)

Service / Product.In terms of services and products, LEIAAI is known for

offering aviation-related courses such as Private Pilot License (PPL) course,

32
Commercial Pilot License (CPL) course, Instrument Rating (IR) course, Flight

Instructor (FI) course, and Aviation Maintenance Technician (AMT).

The first course offered by LEIAAI which is stated above is the Private

Pilot License (PPL), where basic flight concepts, principles, regulations,

procedures, and techniques in flying an airplane are learnt by students. The

second course offered is the Commercial Pilot License (CPL), this course covers

a large scale of applying flight concepts, regulations, procedures and techniques.

Students are not allowed to enrol the CPL course unless they have finished

taking the PPL course. The third course is the Instrument Rating (IR) where

students will already undergo intensive trainings such as instrument ground

academics, complex simulated and actual flight. This course will help pilots to

obtain a much more advanced and enhanced navigational skills. The fourth

course offered is the Flight Instructor (FI). This course expands the opportunities,

in terms of career, for students who finished the CPL course. Having a Flight

Instructor license allows the holder to teach a student-pilot and demonstrate flight

operations, evaluate student-pilot performance, and correct errors. The last

course is the Aircraft/Aviation Maintenance Technician (AMT); it is a two-year

technical-vocational course where students are taught about the principles of

power plant rating, and airframe rating.

Inherent to these is the establishment of a student employee relationship

so that the students can be open about any comments and suggestions. LEIAAI

also allow several clubs and organization to be formed in which the students

could enhance their talents and leadership skills.

33
 Table 2shows the courses with the corresponding descriptions.

Place. The school is located at the San Fernando Airport, Poro Point

Freeport Zone, City of San Fernando, La Union. The advantage of the place is

that it is within the vicinity of the Freeport Zone which imported goods can be held

or processed free of customs duties. The campus site is in line with the strategic

goals and objectives of LEIAAI in having a quality, relevant and excellent

education. Import and export transactions that will be held at the Poro Point,

Freeport Zone will be tax free, which is advantageous for LEIAAI because it will

help save money. The flight trainings offered to the students will also be

convenient due to the fact that LEIAAI is located at the airport, provided there is a

runway available for usage of LEIAAI students. Figure 3shows the LEIAAI site

map.

Price. The price is significant to consumers because it represents the

value of the products or services that they will purchase (Eugenio et. al, 2017).

Tuition fees and other miscellaneous fees are based on the schedule of fees

approved by the CAAP every school year. Tuition fees vary depending on the

course and year. The total amount of tuition fees is divided as to how many hours

are acquired by students. Students are required to pay the 10% down payment

before they can enrol. There is a 5% commission to every person who will refer a

student to enrol. See Appendix Cfor the tuition fee breakdown of the different

courses. Table 3 shows the gross tuition fee of all courses.

Promotion.Promotion is an important ingredient of marketing mix as it

refers to a process of informing, persuading, and influencing a consumer to make

34
choice of the product or services to be bought (Almachar et. al, 2016).LEIAAI

uses different promotional strategies to encourage students to enrol to their

school. The school conducts an annual promotional school campaign in both

public and private schools in Region I. They even go to different barangays here

in La Union to take an opportunity to talk in front of the barangay officials and let

them disseminate the information to their people. The marketing department of

LEIAAI conducts additional promotional activities for the program such as giving

brochures, leaflets and posters. LEIAAI also have social networking site like

Facebook and Instagram. See Appendix D for the sample folder and see

Appendix E for the social networking site.

Operations Management

Operations Management is the part of an organization that is responsible

for producing goods and or services (Stevenson, 2005).

Admission Policies. The policy used by a school or other type of education

institution or organizational institution or organization including statutory and

mandatory governmental criteria, cycle, guideline, process and procedure

constituted in law or legislation for the admission of pupils into the school,

educational institution or organization(Harmonious,2016). This part details how

administrations handle applications from students with disabilities or additional

support needs including admission with advanced standing, and applicants with a

criminal conviction. The policy outlines how administrations handle instances of

fraud or misleading information in the applications process.

35
 Table 2
Course Offerings

COURSE DESCRIPTION

A 2-year technical-vocational
Aviation Maintenance Technician course designed to teach the students the
(AMT) principles of Avionics rating, Power plant
rating, and Airframe rating.
Students who like to pursue a
Private Pilot License(PPL)-Commercial
career to become an airline pilot offered
Pilot(CPL)-Instrument Rating(IR)
this package to take PPL, CPL, and IR
Package
courses.
Private Pilot License(PPL)-Commercial Students who wants to take the
Pilot(CPL)-Instrument Rating(IR)-Flight PPL,CPL, IR, and FI courses are being
Instructor(FI) Package offered this package for an affordable
price.
This course covers a more
extensive and advance explanation and
Commercial Pilot License(CPL) application of flight concepts, regulations,
procedures, and techniques. The PPL
course is a prerequisite for the CPL
course.
Students will learn the basic flight
Private Pilot License(PPL) concepts, principles, regulations,
procedures, and techniques in flying an
airplane.
Students will undergo a specialized
course with an intensive instrument
Instrument Rating(IR)
ground academics and complex simulated
and actual flight trainings. Obtaining an IR
will allow pilots to fly with much improved
navigational skills especially in poor
weather conditions.
This course is designed to expand
career opportunities for CPL holders.
Flight Instructor(FI) Having an FI license allows the holder to
teach a student-pilot and demonstrate
flight maneuvers, evaluate performance,
and correct errors.

36
 Table 3
Gross Tuition Fee

COURSE 1st Year 2nd Year

Aviation Maintenance Technician PhP 55,300.00 PhP 48,850.00

Private Pilot License (PPL)- Commercial

Pilot (CPL)- Instrument Rating (IR) PhP 1,958,198.5
Package
Private Pilot License (PPL)- Commercial
Pilot License (CPL)- Instrument
PhP 2,500,095.5
Rating(IR)- Flight Instructor (FI)
Package

Commercial Pilot License (CPL) PhP 1,082,160.00

Instrument Rating (IR) PhP 375,015.00

Private Pilot License (PPL) PhP 499,350.00

Flight Instructor (FI) PhP 575,042.00

37
Figure 3
Site Map

38
 The admission policies of LEIAAI are about the same as other colleges.

The school admits students who have good moral characteristics and must

acquire the basic requirements needed. Freshmen, transferees and old students

almost have the same enrolment process. Enrolees should pay at least 10% of

their tuition fee to be enrolled. See Appendix Ffor the admission requirements

and registration form and Appendix G for the enrolment procedures of LEIAAI.

Instructional Policies.LEIAAI’s policies are implemented to control and

maintain the good behaviours and core values that LEIAAI’s students should

have. This helps to discipline the students and help them understand the rules

and regulations of the school to avoid conflicts between the school, the students,

and the parents/guardians. Issues where conflict between the school and the

students, with their parents or guardians, are commonly experienced by all

schools around the world which are inclusive of unexpected accidents,

misunderstandings, lack of interpersonal relationship, etc. These issues occur

due to the fact that most students do not obliged their selves to take time and

read the rules and regulations that are implemented at their specified schools. If

such are to be read and understood by the students, issues that will cause

unwanted results will not occur and will instead provide a peaceful environment.

Almost the same with other schools, LEIAAI organizes a general assembly

which discusses all the rules and regulations of the school. With this, students,

specifically the new ones, are informed of the actions which they are allowed to

do and which are not. Unfortunately, even though it’s implemented and organized

every year, the general assembly help by LEIAAI is only required to new /

39
freshmen students. But for some schools, general assembly’s are organized

every year for all levels to make sure that even though students were already

reminded of the rules during their first year of college, they are still reminded

every year for the rules that they should follow to avoid further mistakes.

Shown in Appendix H are the instructional policies. This handbook serves

as a guide for obedience and punishment for cases of disobedience by all

parties. This creates a well-controlled relationship between the school, the

parents, and the students. See Appendix I for the rules and regulation on

students.

Student Services

Library Services. This is where references and circulations of information

and data needed by students and instructors are put in place to easily acquire

knowledge which will be helpful to their studies, lessons, and researches.

Manuals and other instructional sources are also offered in the library. LEIAAI’s

library services offer books and manuals that are very much helpful when

students are at the need to search for information that are reliable and proven to

be legitimate sources. This service teaches information literacy skills to enable

students to become independent learners.

The use of the internet is also one of the most convenient ways in

researching but more information is provided in books that are published by well-

known authors. Also offered at the library of LEIAAI are feasibility studies created

by old students or graduates of the school which serves as guidance for current

40
students to help them understand the process of making feasibility studies

themselves.

Guidanceand Counselling Service.This office provides guidance service

by using an integrated approach to the development of outstanding individuals

primarily by helping them utilize their potentials to the fullest. They also provide

counselling through individual or group intervention designated to facilitate

positive change in student behaviour, feelings, and attitudes.

LEIAAI aims to produce well educated students with good moral values.

Their guidance and counselling services helps students overcome situations that

are out of their control and capacity. The school plans to guide students to the

right path and reduce the risks of bad behaviours or disobedience among them.

Nowadays, people tend to do things due to the emotional state that they are in.

Bad behaviours such as consistent absences, tardiness and laziness are often

caused by how difficult or troubled other students are. With the help of LEIAAI’s

guidance and counselling services, students are able to express their emotions

and share what situations they are in. With this type of practice, students are able

to overcome situations that they cannot fix alone and reduce/avoid the risk of

behaving inappropriately not only at school, but at their homes as well.

Medical and Dental Services.These services aim to protect, promote and

maintain the health and well-being of students and faculty personnel. Medical

services include Physical Examination (PE) wherein students and employees of

the company participate in a medical examination to determine their bodily fitness

in case there are signs of disease. Dental services are also offered at LEIAAI.

41
These are oral examinations wherein maintenance of the student and employees

healthy teeth is implemented. Oral hygiene is practiced to keep their mouth and

teeth clean in order to prevent dental problems in the future.

In case of emergencies and unexpected accidents, LEIAAI offers medical

and dental insurance to their students and staffs. But such are only insured by

LEIAAI when the incident happened inside the campus. If it happened outside the

campus, it is not the responsibility of the school but it is the students or the

employees.

Canteen Services.This is where different types of food and beverages are

sold to students and staffs during their vacant hours. There are two canteens at

LEIAAI, one for the flying school building where flight students and employees

can eat their food in their allotted time and another canteen for the AMT building

where AMT students can buy and eat their food.Their food is also provided by

LEIAAI.

Security Services.This helps promote a safe environment to all the people

inside and outside the establishment. Security systems often offer services that

are at a strict level of protection in order to avoid security breaches and burglary.

Another reason why strict rules in security are implemented is because students

tend to leave the campus and cut class without getting caught by security. These

types of behaviours done by students are to be solved by the organization.

The security system of LEIAAI is as the same as other school. Logbooks

are presented to every visitor entering the school. There are also CCTV cameras

42
installed around the campus to ensure a safe environment for the students and

staffs. For better protection, the school should include a more strict environment

and hire more security personnels in order to avoid unexpected and unwanted

instances.

Sports and Recreation Services.It can be defined as the vast array of

activities that people pursue in their leisure time (Sport and Recreation: A

Statistical Overview, Australia, 1997, 2001).This contributes to economic growth

through business investment and employment, and helps sustain the

environment through protecting open space and natural areas. LEIAAI offers

many sports and recreation activities such as basketball, volleyball, table tennis,

badminton, and chess during their sports fest every October. Students and

teachers are allowed to play during sports fest and every after class dismissal. It

aims to promote camaraderie and sportsmanship. Unfortunately, for LEIAAI, the

AMT department are the ones who are only participating in their sports fest.

LEIAAI should be more inclusive of flying school students to participate in such

events to enhance their abilities in physical activities and gain more relationships

with other people at LEIAAI.

Co-Curricular and Extra-Curricular.Co-curricular are extensions of the

formal learning experiences of students with their chosen courses. Extra-

curricular activities, on the other hand, are either implemented by the school or by

other organizations outside the school and these activities are not connected to

academic learning of students. Co-curricular and extra-curricular are made to

encourage students to join and develop their talents and skills. SSC is one; it

43
helps the school to implement rules and regulations as well as raising funds for

other activities.

General Services. School facilities, equipment, resources conservation

and school van services are covered under the maintenance and repair services.

This helps services be more effective and efficient. LEIAAI provides general

services for safety purposes. It helps them in achieving their vision and mission

especially when they give good service to its people. It also provides the best

practice in managing facilities, security and any other things covered under the

general services.

Free Accident Insurance. Students, faculty and staff are insured through

COOPHEALTH sponsored by ACDI effective every year. In this way, LEIAAI

shows care and assurance to its people. This could also uplift them because it

gives good impression to their company.

Internet Services.LEIAAI offers unlimited internet access to its students,

faculty and staff. Internet is accessible anywhere inside the LEIAAI campus. It

aims to bring out the self-sufficiency of students, faculty and staff. Internet

services are better way to create better outcome of activities. This could also

improve the teaching and learning technique of teachers and students because it

is where they can access ideas for educational purpose. It opens new door

because internet allows the company to work with other people from other

places.

44
School Organization

LEIAAI shapes out the students by encouraging them to join organizations,

students will learn more about their self because joining organizations open new

opportunities and help them to develop soft skills because organizations give

them the opportunity to deal and interact with different kind of people. LEIAAI

recognize SSC as one effective organization because it is the voice of students

and it gives students the chance to develop leadership by organizing and carrying

out school activities and services project.

Physical Plant, Facilities and Features

LEIAAI is located at San Fernando Airport, Poro Point Freeport Zone, San

Fernando City, La Union and consist of 3 buildings. The main office consists of

Hangar 1 that has a floor area of 644.97 sq. m., flight simulator room that has a

floor area of 37.35 sq. m., 2 lecture rooms that has 32.35 sq. m. each, president

office that has 15.74 sq. m., operation office that has 34.37 sq. m., H.R./Admin

office and flight instructor lounged that has 32.35 sq. m. each, mess hall that has

60.75 sq. m., and 3 restrooms that has 14.49 sq. m. each, a total floor area of

951.56 sq. m.

Hangar 2 has a total floor area of 814.29 sq. m. A 644.97 sq. m. floor area

for Hangar, 21.38 sq. m. for avionics shop, 36.37 sq. m. for engine shop, 26.66

sq. m. for supply office, 19.54 sq. m. for maintenance office, 60.75 sq. m. for

multi-purpose hall, and 4.62 sq. m. floor area for the restroom.

45
 The AMT Building consists of four (4) rooms that has 158.06 sq. m., library

that has 45.44 sq. m., admin/guidance office that has 11.24 sq. m., faculty

lounged that has 16.72 sq. m., canteen that has 24.06 sq. m., and four (4)

restrooms that has 7.28 sq. m. each, a total floor area of186.48 sq. m.

The Physical Layout for the 3 building is shown in Figure 4.

School Building. LEIAAI has three (3) buildings, the Aircraft Maintenance

Technician School building, Hangar 1 and Main Office building, and Hangar 2

and dormitory building. Fire exits were constructed at the back of each floor and

the Aircraft Maintenance Technician School has 4 doors located in front of the

building. Every room has two (2) doors each and it is equipped with sliding

windows and every building has fire escape plan. See Appendix Jfor the detailed

illustration.

Lecture Rooms.LEIAAI has a total of six (6) lecture rooms, two (2) is

located at the main office and the other four (4) is at the AMT building. All lecture

rooms were designed in such a way that the students will feel comfortable while

learning. Lecture rooms in the main office are equipped with one (1) white board

each while the lecture rooms in AMT building are equipped with two (2) white

boards each. All rooms are fully air conditioned. For a detailed illustration, see

Appendix K.

Computer Room/ Drawing Room.LEIAAI has one (1) computer laboratory

with only ten (10) computer units and it has free internet access. It is also

equipped with long tables for students who have drawing subjects. The room is

46
fully air conditioned and it is located only at the Aircraft Maintenance Technician

School Building. For a detailed illustration, see Appendix L.

Library.The space for the library cannot accommodate a lot of students

because it is too small but it is equipped with different books, manuals and

feasibility studies about aviation. The room is fully air-conditioned. For a detailed

illustration, see Appendix M.

Mess Hall.LEIAAI has two (2) mess halls, one for Aircraft Maintenance

Technician School for AMT students and one for the main office, Hangar 1 and

Hangar 2 for pilot students and employees. Both mess halls have their own

kitchen. The mess hall in hangar 1 is fully air conditioned and it is equipped with a

television with cable while the mess hall in Aircraft Maintenance Technician

School is only equipped with 4 wall fans. Meals for both AMT and main office

mess halls are provided by LEIAAI. For a detailed illustration, see Appendix N.

Hangars.LEIAAI has two (2) hangars; hangar 1 is the airframe laboratory

where mechanics conduct inspections and repairs concerning the airplane’s body

while hangar 2 is the power plant laboratory where they also conduct inspections

and repairs concerning the airplane’s engine. Airplanes are also being parked

here after flights and it is equipped with CCTVs for security. See Appendix Ofor

the image.

47
 Figure 4
Physical Lay-Out

48
 Flight Simulator Room.This room contains a device called flight simulator that

artificially recreates aircraft flight and the environment in which it flies for pilot students’

simulator training. A flight instructor let a pilot student to fly an airplane using a simulator

first before sending them to fly a real one. For a detailed illustration, see Appendix P.

Offices.There are different offices in LEIAAI and all are fully air-conditioned. The

President’s Office, Admin or HR office, Operation’s Office, Flight Instructors’ Lounged

are located in Hangar 1 building. Maintenance Office and Supply Office are located at

the 1st floor of Hangar 2 building. Admin or Guidance Office and AMT Faculty Lounged

are located in Aircraft Maintenance Technician Building. For a detailed illustration, see

Appendix Q.

Dormitory.LEIAAI has two (2) floors of dormitory and it is located in second and

third floor of Hangar 2 building. The second floor consists of five (5) rooms, has a

laundry area and it is for the employees that are not from La Union while the third floor

consists of six (6) rooms and it is for student pilots. All rooms are fully air-conditioned

and fully furnished. For a detailed illustration, see Appendix R.

Multi-purpose Room.LEIAAI’s flexible space designed to accommodate a wide

range of events and activities like management’s meetings, orientations and many

more. It is equipped with a long table with chairs where meetings are conducted, a

television where presentations are presented, a restroom and is fully air-conditioned. It

is located at the ground floor of Hangar 2. For a detailed illustration, see Appendix S.

Shops.LEIAAI has an engine shop where Approved Maintenance Organization

(AMO) and aircraft mechanics conduct inspections concerning the engine and

49
accessories of an airplane’s engine, and they also have avionics shop where electronic

parts and accessories of an airplane are being inspected and examined by avionic

licensed personnel. For a detailed illustration, see Appendix T.

Human Resource Management

Employment Rules and Regulations

Rules and regulations for employees are implemented to control the situations

that are happening inside the institution and the employees’ behaviours as well. This

helps employees do what’s right for the company. Shown in Appendix Uare the

employment rules and regulations of LEIAAI.

Compensations, Benefits, and Privileges

Compensation is the total cash and non-cash payments that you give to an

employee in exchange for the work they do for your business. (Kappel, 2012).

LEIAAI has regular and contractual employees. Their salaries are different from

each other for the reason that contractual employees receive salaries which are lower

than what regular employees receive. The salary for LEIAAI’s employees increases

when they become regular employees. The compensation process is the same as other

organizations. The salaries of the employees are stable but there are certain changes

when there are employees added to the company. For every 15 th and 30th/31st of the

month, salaries of employees are distributed through their bank accounts. Some

companies are also giving incentives to their employees like transportation expense,

education aid, paid legal holiday and so on. Incentives are designed to inspire employee

loyalty and increase productivity among employees (Serrano, 2015).

50
 There are also benefits and privileges given to the employees such as meal

allowance, rice, groceries worth of PhP2, 500.00 monthly, uniform allowance every 2

years, health insurance worth PhP5, 000.00 yearly and travel allowance.

Benefits are critical to ensure a conducive environment for employees to provide

value (Banaag et. al, 2017). Benefits that are required by the government or by law are

also given such as the 13th month pay, PhilHealth, Social Security System (SSS), PAG-

IBIG, maternity/paternity leave, sick leave, vacation leave, and overtime pay to all the

employees.

Management Information System/Information Technology

The Management Information System (MIS) plays one of the most important

roles inside an organization for it is a computerized information-processing system

where the activities, management, and flow of the organization are supported. At

LEIAAI, not all information and data are processed by computers due to the fact that

their technological advancements are still at process. They invested to a 3 million peso

worth project named “Quad-IT” where all data inside the institution and other processes

will be computerized.

Financial Management

LEIAAI follows a certain manual of systems and procedures which are prepared

to provide management accountable and up to date financial records and reports.

Student assessment, collections, payments and receivables are fully supervised

by the accounting department in Manila where reports are submitted immediately by the

accountant in La Union when there is a payment received.

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 The income statement for LEIAAI is a basic record for discussing its earnings for

the whole year. This also shows the result of the school’s operation and its revenue

went up or goes down. The financial statement was not given due to confidential

reasons.

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