Ent300 module10

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP

ORGANIZATIONAL PLAN

ORGANIZATIONAL ORGANIZATIONAL PLANPLAN

MODULE 10


ORGANIZATIONAL PLAN

DEFINITION OF MANAGEMENT

According to Mary Parker Follet it is “the art of getting things done through other people”.

A process of planning all the resources efficiently, organized the resources effectively, leading then controlling the resources. Resources here refer to capital, manpower, technology and materials.


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FUNCTIONS OF MANAGEMENT

Planning• A proper planning need to be developed

in order to make sure all the resources is being fully utilized.

• Planning involved goal setting and defining the action those need to be taken in order to achieve goals.


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• Managers that involved in planning require knowledge of the company, information on the factors of the environment, e.g. economic condition, good judgment in reducing risk and decision making.


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Organizing

• Organizing involves determining the task to be done, who will do them and how those task will be managed and coordinated

• The manager’s role in this situation is to coordinate the effort of the workers of different task and create the conditions to find solutions.


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Directing/Leading

• Managers must be also capable of leading their subordinates to work together to achieve the organization goals.

• Effective managers must try to understand individuals and group behavior, be able to motivate and discuss with their subordinates


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Controlling

• Controlling is to identify between planned and actual result, whether the organization is performing as what had been planned.

• If the organization is not going towards the goal, corrective action need to be taken in order to adjust the plan to the existing situation


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BUSINESS VISION

• A vision statement describes what the organization aspires to be in the long term.

• It is a description of the way in which the business wants to be perceived by others at some future date.

• For example, TNB vision is “To be among the Leading Corporations in Energy and Related Businesses Globally"


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BUSINESS MISSION• Many businesses also have mission. • Mission statements are statements of how

entrepreneurs will achieve their purposes in the environments in which they conduct business.

• It is also the reason why an organization exists.

• For example, TNB mission is “We Are Committed to Excellence in Our Products and Services”


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BUSINESS OBJECTIVES

• It is the starting point in effective management.

• Defined as what does a business hopes and plan to achieve.

• In other word, goals are performance target.

• Goals differ from business to business depending on its purpose and mission.

• Any business functions systematically because it sets goals and plan accordingly.


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GOAL SETTING

• Purposes

• To provides direction and guidance for all entrepreneurs

• To help firms allocate resources• To define corporate culture• To help entrepreneurs assess business

performance


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• SMART Concept

S= Specific

M= Measurable

A= Achievable

R= Realistic

T= Time frame


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TYPES OF GOALS

• Long term goals relate to extended period of time, typically five years or more.

• Intermediate goal are set for a period of one to five years.

• Short term goal are set for perhaps one year and are develop for several different areas.


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ORGANIZATIONAL STRUCTURE

Organizational structure depends on theneeds of the organizationSteps are:1.List all the work needed to be done in the

organization2.Group the work or job into section, unit or

department3.Construct diagrammatically through

organizational chart


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ORGANIZATIONAL CHART

Organizational chart shows

• Job position

• Hierarchy

• Span of control


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TYPES OF ORGANIZATIONAL STRUCTURE

• Function

• Product

• Client

• Number of workers

• Region

• Shifts


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ORGANIZATIONAL STRUCTURE-FUNCTION


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ORGANIZATIONAL STRUCTURE-PRODUCT


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ORGANIZATIONAL STRUCTURE-CLIENT


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ORGANIZATIONAL STRUCTURE-NUMBER OF WORKERS


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ORGANIZATIONAL STRUCTURE-REGION


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ORGANIZATIONAL STRUCTURE-SHIFTS


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The steps in preparing an organisational plan for a business:

1. The introduction to the Organisation2. To develop an organisation chart3. To prepare a list of administration personnel4. To develop a schedule of tasks and

responsibilities5. To develop a schedule of remuneration6. To determine the office equipment and supplies7. To prepare an administration budget

PREPARING AN ORGANISATIONAL PLAN


ORGANIZATIONAL PLAN

1.Introduction to the organisation

For the introduction, state the vision, mission and

objectives of the business organisation.

• Business vision helps to prepare a small business to plan for the future and to achieve what it aspires to be.

• Business mission is a statement that shows the purpose or reasons for its existence.

• Business objectives are short term planning characterised by a more specific statements and with definite time frame. Use SMART concept.

• Also include the following: business address, location plan, type of building and infrastructure.


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2.Develop an organisation chart

Based on the structure of business, develop an organisational chart that best suits the organisation. The chart portrays the hierarchy and chain of command of personnel in an organisation at a particular point of time. The most commonly used organisational structure by a small business is the line structure which is based on :• Shifts• Number of workers• Functions• Products• Regions• Clients


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3.The preparation of Administration personnel

At this stage, lists all the personnel involved in the administration

section of the business and those personnels who are not directly

involved in operation (i.e. indirect workers).

Using a two column table, indicate the personnel position in one

column and the number of personnels in the second column. The

table is as illustrated below: TABLE 1: LIST OF ADMINSTRATION PERSONNEL

POSITION NO. OF PERSONNELS


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4. Develop a schedule of Tasks and Responsibilities

The next step is to prepare a schedule of tasks and responsibilities. Foreach personnel position explain its main tasks and responsibilities.

This may be illustrated by drawing a two column table as in TABLE 2.Then depict all the positions that have been described in TABLE 1 intoColumn one of TABLE 2. In column two, explain the tasks and responsibilities of each position.

TABLE 2: SCHEDULE OF TASKS AND RESPONSIBILITIESPOSITION TASKS AND RESPONSIBILITIES


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5.Develop a Schedule of Remuneration

The remuneration of each personnel of all indirect workers has tobe taken into consideration beforehand. The remuneration includes monthly salary or contractual wages, (daily, weekly or on project basis) and all provident fund contribution as well as work related insurance.

Take note that provident fund contribution to EPF by employersis 12% (subject to regulatory changes) of base pay. Meanwhile, SOCSO contribution will be based on an average of 2.5% of personnel’s monthly salary not exceeding RM2000.

It would be made clearer, if a schedule of remuneration is developed as below:


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TABLE 3: SCHEDULE OF REMUNERATION

POSITION NO. MONTHLY SALARY (RM)(A)

EPF(RM)(B)

SOCSO(RM)

(C)

TOTALAMOUNT(RM)

(A)+(B)+( C)


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6.Determine the Office Furniture and Fittings

The business owner is to list all the office furniture andequipment that are necessary for the administration section. It is also necessary to include all office supplies. In addition, the owner should also survey and check on the prices of theoffice equipment and supplies in order to spend within the administration needs.

Develop a list of office furniture and fittings as shown below.(Note: Also a prepare a separate list of office supplies. Example: Office stationeries)

TABLE 4: LIST OF OFFICE FURNITURE AND FITTINGS

TYPE PRICE /UNIT(RM)

QUANTITY TOTAL AMOUNT(RM)


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7.The Preparation of The Administration Budget

Upon the determination of the administration expenses classifythe items into the following categories:

Capital Expenditures/ Fixed Asset Cost Working Capital/Monthly Expenses Other Expenses


ORGANIZATIONAL PLANADMINISTRATION BUDGETITEMS FIXED

ASSETMONTHLY EXPENSES

OTHER EXPENSES

Land & BuildingFurniture & FittingsVehicle(office use)RenovationSalary (EPF & SOCSO)RentUtilitiesOffice SuppliesBusiness RegistrationBusiness Licence/PermitDepositProfessional FeesRoad Tax/InsuranceCourses Attended

TOTAL

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END OF MODULE 10

Ent300 module10

Business

organization goals

tnb mission

mission statements

effective managers

resources isbeing

short term goal

proper planning need

tnb vision