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CHAPTER I

INTRODUCTION

Background of the Study

Organizations nowadays are faced with greater challenges than it

was before. This is due to the rapid changes in the technology, economy

and other internal and external factors that affect the organization. Due

to these developments, risks may go unidentified which in turn may

result to larger losses for the organization. It is therefore a must for every

organization to put in-place an effective management system for an

organization to be successful.

The cornerstone of a successful organization is an effective

management system and although many small businesses may not have

large resources available to put into management system, it can still be

done effectively. Effective management system is a framework of policies,

processes and procedures adopted by an organization to continually

increase the economic and quality value of products and services and to

ensure that the activities of the organization are efficiently and effectively

carried out to achieve its goals.

Managing business effectively is the key to the establishment and

growth of the business. Despite the importance of management, this area

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is often taken for granted and misunderstood, primarily because people

focus on the output rather than the process of management.

Statistically, roughly 66 percent of new businesses survive two

years or more, 50 percent survive at least four years, and just 40 percent

survive six years or more. One of the top ten reasons why many

businesses closed their doors is because of poor management.

Management of a business encompasses a number of activities:

planning, organizing, controlling, directing and communicating. The

cardinal rule of small business management is to know exactly where

you stand at all times. A common problem faced by successful

companies is growing beyond management resources or skills. This is

according to the study “Redefining Small Business Success” by the U.S.

Small Business Administration (SBA) (onstrategyhq.com).

Further, according to the United States Bureau of Labor Statistics,

only about 50 percent of new businesses survive for five years and only

about one-third survive for 10 years or more. There are many

contributing factors why business fails and one of the top reasons is the

inability to properly implement management systems. Research shows

that organizations can benefit from implementing management systems

to improve efficiency in key areas that have impact on its success.

Businesses that adopt and certify to best practices as outlined in

internationally recognized standards, reap substantial benefits such as

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improved customer service, boosted performance, new customers

acquired, retained existing clients and achieved cost savings

(www.successharbor.com).

The International Organization for Standardization (ISO) affirmed

that management systems enable organizations to implement a

structured approach to their activities in order to achieve their

objectives. Some organizations, especially smaller ones, may simply

expect each individual employee to know how to do their job. But any

size of business can benefit from establishing clear procedures to ensure

everyone is clear on who does what. This process of systematizing how

things are done is known as a management system. ISO management

system standards (MSS) help organizations improve their performance by

specifying repeatable steps that organizations consciously implement to

achieve their goals and objectives, and to create an organizational

culture that reflexively engages in a continuous cycle of self-evaluation,

correction and improvement of operations and processes through

heightened employee awareness and management leadership and

commitment (www.iso.org).

In the United States, General Electric (GE) put much importance

on the implementation of sound management systems. GE recently

overhauled its existing management systems. Under the new system, GE

is still relying heavily on managers, who meet with employees at the end
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of the year but the difference is that they’ll be guiding employees and

coaching them on their path to meeting their goals under a much less

rigid framework. GE is also rolling out a system for delivering more

regular feedback (www.fastcompany.com).

In Asia, Australia and New Zealand Banking Group Limited (ANZ)

is one of the most successful and respected bank across Asia Pacific

region. According to Alex Thursby, Chief Executive Office of ANZ Asia

Pacific, building a successful business in Asia involves effective

management of the complexities created by the pace of social and

economic development. Effective management enables the company to

understand cultural diversity in the region. They are also adopting

policies and approaches to deliver responsible products, services and

decisions consistent with the expectations of customers, governments

and communities (Asian Business Management, 2014).

In the Philippines, Ayala Corporation adopts internationally

accepted management systems in its business operations. Its companies

are certified to meet ISO standards on business continuity, energy

management, occupational health and safety as well as industry-specific

standards on IT service management and information security, among

others. By applying these management principles, the company becomes

more efficient and productive in their operations, satisfy their customers,

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minimize environmental impacts, and provide a healthy and safe

workplace for their employees (www.ayala.com.ph).

Another example is the Eagle Cement Corporation which recently

received certifications from TUV SUD PSB Philippines. These

certifications are based on Integrated Management System (IMS)

standards. TUV SUD is an international certification organization. It

conducts comprehensive testing, inspection, auditing, training and

certification of integrated services and processes for various industries

including manufacturing. Eagle Cement Corporation received three

certifications from TUV SUD. One of them is the Occupational Health

and Safety Management System (OHSAS 18001:2007). It recognized the

company’s efforts in promoting a safe and healthy working environment.

The second is the latest version of the Environment Management System

(ISO 14001:2015), which manifested the company’s commitment to

sustainable development. In line with the company’s pursuit of product

excellence, Eagle Cement Corporation also received the certification for

Quality Management System (ISO 9001:2015). It ensures consistent and

excellent quality cement products under the brand names Eagle

Strongcem Type 1 and Eagle Advance Type 1P cement. Eagle Cement

products are also certified by government agencies and even exceeds the

Philippine National Standards (PNS) under PNS 07:2005 and PNS

63:2005 (The Philippine Star, 2016).

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In Region 1, Lorma Medical Center is one of the most trusted

health care provider and leading in terms of innovations brought about

by its continuous enhancement of its management systems. The hospital

is internationally recognized for excellence in total health care and

continuous innovations with the highest level of satisfaction. As a proof,

the hospital was ISO 9001-2008 certified in 2010 and was able to re-

certify on 2014-2016. At present, Lorma Medical Center is applying for

ISO 9001-2009 which focuses on quality management system (Hospital

Management in Developing Countries: Lessons from the Philippines,

2010).

Just like any other organization, Don Mariano Marcos Memorial

State University-Sericulture Research and Development Institute

(DMMMSU-SRDI) also adopts management systems to ensure that its

operations are effectively and efficiently carried out to attain its goals. It

is also guided by the rules and regulations as provided by its oversight

government agencies like Department of Budget and Management (DBM),

Commission on Higher Education (CHED), Department of Agriculture

(DA), Department of Science and Technology (DOST), Commission on

Audit (COA), Civil Service Commission (CSC), Bureau of Treasury (BoT),

and other line agencies.

DMMMSU-SRDI started as a research project of DMMMSU-North

La Union Campus (NLUC). It was the first to introduce sericulture in the

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province of La Union. It also served as the training ground for agriculture

students to learn how to grow silkworms. It was institutionalized through

the creation of Sericulture Research and Development Center (SRDC) on

July 18, 1987 through DMMMSU Board Resolution No. 372-87. On April

8, 1992, SRDC was converted into Sericulture Research and

Development Institute (SRDI) by virtue of Republic Act No. 7359. The

Institute has the following functions: educate and train sericulturists;

conduct researches; and extend technologies (www.dmmmsu.edu.ph).

DMMMSU-SRDI continuously ventures into several research and

development programs in order to cope with the latest trends. Its

research and development programs are attuned towards the regional

and national concerns of the country. These are poverty alleviation,

expansion of employment opportunities and increased labor productivity,

the attainment of higher and sustainable growth and level of

development and the improvement of the socio economic conditions of

the people in the society. This makes them responsible, self-sufficient

and self-reliant Filipinos of today. Its research, development and

extension programs are geared towards making sericulture as an agro-

based industry to spur economic growth in the country

(www.dmmmsu.edu.ph).

The goal of the Institute is to help attain self-sufficiency of quality

silk products for socio-economic development and environmental

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sustainability. To attain this goal, DMMMSU-SRDI entered into a

Memorandum of Agreement with local farmers. Under the Memorandum

of Agreement (MOA), the silkworms are given to farmers who will be

responsible for feeding the silkworms until they reach the fourth molt

wherein the worms construct cocoons that encase their pupae. The

cocoons will then be returned by the farmers to DMMMSU-SRDI and

they will be paid for their services. In this way, the Institute can promote

silk production as well as help the farmers to uplift their way of living

(www.dmmmsu.edu.ph).

The research programs of the Institute endeavor to solve the most

pressing needs and problems the sericulture farmers face today. But

despite the continuous research and development in its operations,

DMMMSU-SRDI is still confronted with issues or constraints that affect

the operations of the Institute.

At present, DMMMSU-SRDI is incurring losses as evidenced by its

audited financial reports for calendar year (CY) 2015. From an income of

approximately ₱1,300,000 in CY 2013, it dropped to losses of more or

less than ₱60,000 in CY 2014 and continued to go down to more than

₱100,000 in CY 2015 (Commission On Audit Management Letters for CY

2013, 2014 and 2015).

With the decreasing financial performance of DMMMSU-SRDI for

the past years, there is a need to revisit and carefully review the
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appropriate implementation of its management systems. Proper

implementation and monitoring of management systems ensures that the

activities of the organization are efficiently and effectively carried out to

achieve its goals.

While several studies on sericulture and DMMMSU-SRDI in

particular are in place, there had been no specific study about

DMMMSU-SRDI whether it is managed and operated in consideration of

the major management systems: marketing, operations, human

resource, financial and research and development. It is on this premise

that the study was undertaken, to be able to develop a Five-Year

Strategic Plan for DMMMSU-SRDI that will promote continual

improvement and manage risks while operating in more efficient and

effective ways.

Theoretical Framework

Scientific management by Frederick W. Taylor is a theory of

management that analyzes and synthesizes workflows. Its main objective

is improving economic efficiency, especially labor productivity. It was one

of the earliest attempts to apply science to the engineering of processes

and to management. In DMMMSU-SRDI, it could be applied by analyzing

the current workflow of production and then recommending a system of

production that best suits the organization and will improve the

efficiency and productivity of each employee. It includes organizing

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equipment used in processing cocoons in an assembly line, devising

work schedules for equipment maintenance, inventory tracking, etc.

The Contingency Theory created by Fred Fiedler goes from the

assumption that there is no single best way to carry out a task. An

organization faces a variety of choices in every decision it makes. The

same is true in attaining the goal of DMMMSU-SRDI. The Institute will

face range of choices in determining how the strategy is to be structured,

how it should be communicated, how it should be implemented, and how

it should be managed. Applying this theory, DMMMSU-SRDI has a

variety of ways at hand on how to enhance its current Management

System, but it suggests that the best strategy to undertake is the one

which is best suitable for the organization. The management could mix

different strategies and develop a new one which fits best the

organization.

The Theory of Constraint developed by Eliyahu M. Goldratt in 2010

presumes that organizational performance is dictated by constraints. It

believes that there are hindrances that prevent an organization from

maximizing its performance and attaining its goals. Constraints can be

internal or external to an organization. It can be people, equipment,

resources or even policies. According to this theory, every organization

has constraints even how perfect it seems. There is that main constraint

that causes the most undesirable effect in the organization and should
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be dealt with first in order to minimize or eliminate the undesirable

effects. For DMMMSU-SRDI, there are numerous problems precluding

the achievement of its goal to become a national center of excellence for a

globally competitive sericulture industry, but applying this theory, it

suggests that there is only one main problem which should be addressed

first. Thus, this research should look deeply in the operations of the

Institute to determine the main constraint that has the most undesirable

effect.

The Competency Theory emphasizes that competence and

performance comprise knowledge and skills and the consistent

application of that knowledge and skills to the standard performance

required. Applying this theory, it suggests that the competency of

DMMMSU-SRDI can be measured in terms of how well it was able to

sustain efficiency and effectiveness of its programs, projects and

activities.

Systems theory treats an organization as a system. A system can

be either closed or open, but most approaches treat an organization as

an open system. An open system consists of three essential elements:

inputs, throughputs, and outputs. An open system interacts with its

environment by way of inputs, throughputs, and outputs. An open

system is a system that is affected by its environment. DMMMSU-SRDI is

an open-system. It receives resources such as equipment, cocoons, and

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the work of employees, referred to as inputs, from outside sources. These

inputs are transformed, called throughputs, and then yield products or

services called outputs. Finished products include suksuk, lays, novelty

items, etc. finished products are then released into the environment,

which are the customers/clients of DMMMSU-SRDI.

Conceptual Framework

In order for any organization to ensure that its structure, function

and goals are not hindered, proper management is an essential element.

Management systems are systematic frameworks designed to

manage an organization’s policies, procedures and processes and

promote continual improvement within the organization. These are

designed and installed to ensure that the organization’s resources are

efficiently utilized. Management systems provide a structure for doing

things properly, attempting to systemize and standardize whatever is

possible in order to do it efficiently and effectively, using validated

methodologies that lead an organization toward the achievement of its

goals. These systems must be reviewed regularly. An organization

assesses its current situation, sets its objectives, develops strategies to

meet these objectives and then measures the results. (Stuhlman, 2012)

The subject of this research undertaking is the extent of

implementation of the management systems of Don Mariano Marcos

Memorial State University- Sericulture Research and Development

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Institute (DMMMSU-SRDI) along marketing, operations, human

resource, financial and research and development management.

Marketing management is an area of management which includes

the process of planning, executing and controlling marketing activities to

attain marketing goals and objectives effectively and efficiently. It uses

marketing mix as one of the most fundamental concepts. The basic

elements of marketing mix: product, place (channel of distribution), price

and promotion, are the epitome of what should be done and are also

known as the controllable variables of marketing because they can be

controlled and manipulated by the marketer. (Hollensen, 2010)

The ultimate purpose of marketing concept is to help organizations

achieve their objectives. In the case of private firms, the major objective

is profit; while in the case of non-profit organizations, it is surviving and

attracting enough funds to perform useful work. (Kotler, 2012)

Proper implementation of the most appropriate marketing mix for

DMMMSU-SRDI can help increase the sales, which in turn can provide

the Institute with much needed funds to further improve its operations.

Investing on promotional activities can be undertaken to increase

customer awareness of the products of the Institute.

Operations management is an area of management concerned with

overseeing, designing, and controlling the process of production and re-

designing business operations in the production of goods or services. It

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involves the responsibility of ensuring that business operations are

efficient in terms of using as few resources as needed, and effective in

terms of meeting customer requirements. It is the management of

systems or processes that create goods and/or provide services. It

involves planning, coordinating and executing of all activities that create

goods and services. It is concerned with managing the process that

converts inputs (in the forms of raw materials, labor, and energy) into

outputs (in the form of goods and/or services). The relationship of

operations management to senior management in commercial contexts

can be compared to the relationship of line officers to the highest-level

senior officers in military science. The highest-level officers shape the

strategy and revise it over time, while the line officers make tactical

decisions in support of carrying out the strategy. (Stevenson, 2010)

According to Sanders and Reid (2013), operations management is

the business function responsible for managing the process of creation of

goods and services. It involves planning, organizing, coordinating, and

controlling all the resources needed to produce a company’s goods and

services. Operations management is the core function of every

organization.

The success of the operations of DMMMSU-SRDI primarily

depends on the systems of production adopted by the Institute. Thus,

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strategies to ensure efficiency and productivity of operations must be put

into place.

Human Resource Management (HRM) includes activities concerned

with recruiting and selecting, designing work for, training and

development, appraising and rewarding, directing, motivating and

controlling workers. HRM refers to the framework of philosophies,

policies, procedures and practices for the management of the

relationship that exist between an employer and worker. (Wilton, 2013)

Human Resource Management implies that employees are the

resources of the employer. As a type of resource, human capital means

the organization’s employees, described in terms of their training,

experience, judgment, intelligence, relationships, and insight – the

employee characteristics that can add economic value to the

organization. In other words, for an organization to succeed at what it

does, it needs employees with certain qualities, such as particular kinds

of training and experience. This view means employees in today’s

organizations are not interchangeable; easily replaced parts of a system

but the source of the company’s success or failure. By influencing who

works for the organization and how those people work, human resource

management therefore contributes to such basic measures of an

organization’s success as quality, profitability, and customer satisfaction.

(Stevenson, 2010)
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The implementation of the management systems of DMMMSU-

SRDI depends mainly on its people, thus, strategies to keep them

committed to implement what is ought to be implemented must be put

into practice. This can be done in various ways like continuous employee

training and development, giving reward/recognition for good

performance, attractive compensation packages and the like.

Financial management monitors the organization’s lifeblood. It

deals primarily with the planning, organizing, directing and controlling of

the monetary sources of an organization. It determines whether the

organization is functioning as intended. It also enables financial

managers to gauge the financial health of the organization in terms of

liquidity, leverage, activity and profitability. Financial management also

includes proper allocation of the financial resources of the organization

as well as the recording, interpretation and communication of the results

of the operations. (www.managementstudyguide.com)

Financial management provides ideas and models to help identify

possible strategies capable of maximizing an organizations value, to

determine how to finance the organization in the most effective way, to

monitor the implementation of the chosen strategy to see whether it is

meeting the planned objectives. (Turner, 2011)

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For government agencies like DMMMSU-SRDI, certain accounting

and auditing rules are prescribed by oversight agencies in the recording

and reporting of financial transactions.

Research and Development (R&D) management is an area of

management that is concerned with designing and leading research and

development processes, managing research and development activities,

and ensuring smooth transfer of new know-how and technology to other

groups or departments involved in innovation. R&D management is

where the tasks of innovation management (i.e., creating and

commercializing inventions) and the tasks of technology management

(i.e., external and internal creation and retention of technological know-

how) meet together. This systematic activity is aimed at discovering

solutions to problems or creating new goods or service. It is important to

be strong in R&D so that the organization can come up with new

innovative products and services to gain competitive advantage.

(www.onlinelibrary.wiley.com)

Research and Development is the core function of DMMMSU-SRDI,

hence, strategies to further strengthen its research and development

activities must be prioritized as well.

Strategic Planning is a management activity that is responsible for

setting priorities, identifying where to focus energy and resources,

strengthening operations, ensuring that employees and other

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stakeholders are working toward common goals, establishing agreement

around intended outcomes/results, and assessing and adjusting the

organization’s direction in response to the changing environment. The

output of strategic planning includes documentation and communication

describing the organization's strategy and how it should be implemented,

which is referred to as the strategic plan. A strategic plan shapes and

guides what an organization is, who it serves, what it does, and why it

does it, with a focus on its vision (Good Strategy, Bad Strategy, 2011).

The Strategic Plan of DMMMSU-SRDI must focus on resolving the

most pressing needs of the Institute that hinders the achievement of its

goals.

From the aforementioned theories and concepts, the research

paradigm illustrated in Figure 1 was constructed. The variables under

focus are limited to variables deemed relevant. The framework of the

research is based on the Input-Process-Output Model. It shows the

relationship of the involved variables: Input, Process, and Output.

The Input includes the extent of implementation of the existing

management systems of DMMMSU-SRDI along the following major

management functions: operations management, human resource

management, marketing management, financial management and

research and development management which were described to

understand the various management systems of the organization. The

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Figure 1. The Research Paradigm

INPUT PROCESS

OUTPUT
1. The extent of 1. Analysis of the:
implementation of the
management systems 1.1 Extent of
in DMMMSU-SRDI implementation of
along : the management
systems in
a. Marketing DMMMSU-SRDI
management; along:
a. Marketing
b. Operations management;
management; b. Operations
management;
c. Human resource c. Human resource
management; management;
d. Financial
d. Financial management;
management; e. Research and Validated Five-
Development Year Strategic
e. Research and management. Plan for
Development DMMMSU-
management. 1.2 Capabilities and SRDI
inadequacies of the
2. The degree of management
seriousness of the systems of DMMMS-
problems encountered SRDI
by DMMMSU-SRDI.
1.3 Degree of
seriousness of the
problems
encountered by
DMMMSU-SRDI.

2. Formulation and
Validation of the
Proposed Five-Year
Strategic Plan for
DMMMSU- SRDI.
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other essential input is the degree of seriousness of the problems or

constraints encountered by DMMMSU-SRDI.

The process starts with the analysis of the extent of

implementation of the current management systems of DMMMSU-SRDI.

It also includes analysis of the capabilities and inadequacies as well as

the degree of seriousness of the problems or constraints encountered by

DMMMSU-SRDI and formulation of Proposed Five-Year Strategic Plan.

The output of the research is a proposed Five Year Strategic Plan

for DMMMSU-SRDI which will serve as a guideline to be able to realize

its goals.

Statement of the Problem

This study aimed to assess the management systems of Don

Mariano Marcos Memorial State University- Sericulture Research and

Development Institute (DMMMSU- SRDI).

Specifically, it sought to address the following:

1. What is the extent of implementation of the management

systems in DMMSU-SRDI along:

1.1 Marketing Management;
1.2 Operations Management;
1.3 Human Resource Management;
1.4 Financial Management; and
1.5 Research and Development Management?
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2. What are the capabilities and inadequacies of the management

systems of DMMMSU-SRDI?

3. What is the degree of seriousness of the problems or constraints

encountered by DMMMSU-SRDI along the identified areas?

4. What validated Strategic Plan for DMMMSU-SRDI can be

proposed to enhance the implementation of the management systems of

DMMMSU-SRDI?

Assumptions

The study is anchored on the following assumptions:

1. The extent of implementation of the existing management systems

of DMMMSU-SRDI is moderately attained.

2. The existing management systems of DMMMSU-SRDI have its

capabilities as well as inadequacies.

3. DMMMSU-SRDI is confronted with problems/constraints.
4. A proposed Five-Year Strategic Plan for DMMMSU-SRDI can be

implemented.

Importance of the Study

The study is expected to provide in-depth analysis and

understanding of the current management systems and the realization of

the goals of DMMMSU-SRDI. Specifically, the following groups and

organizations are benefitted:

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This study may help the members of the sericulture industry to

become more aware of the best sericulture practices, thus leading to

better management and expanding silk production in the country.

To the government funding agencies, the study may provide

baseline information needed in performing endeavors relative to

sericulture and providing assistance to organizations and individuals

undertaking sericulture activities.

To State Colleges and Universities (SUCs), the study will make a

proposed strategic plan that will serve as a guide for more effective

management of their sericulture activities. The study may also serve as

reference information for those organizations that are just starting in

sericulture.
To DMMMSU-SRDI, the content of the study may provide an in-

depth analysis and understanding of their management systems that will

aid the management and personnel of the Institute to effectively

administer their operations. The strategic plan may also provide them

insights that may be useful in making future decisions. Furthermore, the

recommendations of the study could also serve as a guide in planning

the activities and programs for implementation in the next five (5) years

that will best address the most pressing needs not only of the Institute

but its stakeholders as well.

To the community, they may be benefitted from the study by being

provided with helpful information about sericulture. The study may also
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provide them insights that they could utilize to become more productive

in silk making.
To the researcher, this study will serve as an avenue for her to

broaden her understanding of the Institute which would help her in

carrying out her work as the auditor of the Institute. The study will also

enhance her research skills and knowledge on the management of an

organization. Her immersion on this study will help her gain experience

on how to operate and manage her own company/business in the future.

To future researchers, the findings of the study may provide

guidance and reference for those who will have studies related to

management systems of DMMMSU-SRDI or other organizations.

Definition of Terms

The following are terms used in the study. They are defined in the

context of how they are referred to in this study to facilitate better

understanding by the readers:

Capabilities. It refers to the strong points or the strengths of the

current management systems being implemented by DMMMSU-SRDI by

the respondents of this study along the major aspects of management:

Marketing, Operations, Human Resource, Financial and Research and

Development management.

Degree of Seriousness. It refers to the gravity of the major

issues/problems/constraints confronting the management of DMMMSU-

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SRDI along Marketing, Operations, Human Resource, Financial and

Research and Development management.

DMMMSU-SRDI. Don Mariano Marcos Memorial State University–

Sericulture Research and Development Institute. It is one of the

operating units of DMMMSU which has the following functions:

a) educate and train sericulturists; b) conduct researches; and c) extend

technologies.

Extent of implementation of the management system. It refers

to the level or degree of performance of the current management systems

being adopted by DMMMSU-SRDI by the respondents of this study along

the major aspects of management: Marketing, Operations, Human

Resource, Financial and Research and Development management.

Validated Five-Year Strategic Plan. It refers to the output of this

study that will serve as a guide for the management to further enhance

the operations of DMMMSU-SRDI. It contains set of activities that will

promote continual improvement and manage risks while operating in

more efficient and effective ways.

Inadequacies. It refers to the weak points or deficiencies of the

current management systems being implemented by DMMMSU-SRDI by

the respondents of this study along the major aspects of management:

Marketing, Operations, Human Resource, Financial and Research and

Development management.
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Management Systems. It is the framework

of policies, processes and procedures used by an organization to ensure

that it can fulfill all the tasks required to achieve its objectives. [1] These

objectives will be a mix covering many aspects of the organization's

operations (including financial success, safe operation, product quality,

client relationships, legislative and regulatory conformance, worker

management, etc.).

Marketing Management. It includes activities relating to the

combination of the five elements namely namely: Product, Pricing,

Place, Promotion and People that are being practiced by

DMMMSU-SRDI to attract new customers and to retain loyal

customers.

Operations Management. It includes activities and

practices relating to the management of systems or processes of

DMMMSU-SRDI to create products such as suksuk, lays, novelty

items, etc.

Human Resource Management. It includes activities

relating to recruitment and promotion, training and development of

employees, salary, incentives, benefits and other activities directed

in managing the pool of human resources in DMMMSU-SDRI.

Financial Management. It includes the sources of funds,

internal control system, accounting system, guidelines and

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practices adopted by DMMMSU-SRDI to manage its financial

resources and profitability as presented in its Financial

Statements.

Research and Development Management. It consists of all

programs by DMMMSU-SRDI that are attuned towards the regional

and national concerns of the country like poverty alleviation,

expansion of employment opportunities and increased labor

productivity, the attainment of higher and sustainable growth and

level of development and the improvement of the socio economic

conditions of the people in the society. It also covers activities such

as Mulberry Research and Development, Silkworm Research and

Development, Cocoon Processing, Product Development and

Engineering, and Socio-economics.

Problems encountered. It refers to major issues confronting the

management of DMMMSU-SRDI along Marketing, Operations, Human

Resource, Financial and Research and Development management.