Ent300 Module10

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Ent300 Module10

  1. 1. ORGANIZATIONAL PLAN Hjh. Che Asniza Osman Laila Mohammad Kamaruddin Yasmin Kamal Khan Azlin Shafinaz Mohd Arshad
  2. 2. DEFINITION OF MANAGEMENT <ul><li>According to Mary Parker Follet it is “the art of getting things done through other people”. </li></ul><ul><li>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. </li></ul>
  3. 3. FUNCTIONS OF MANAGEMENT <ul><li>Planning </li></ul><ul><li>A proper planning need to be developed in order to make sure all the resources is being fully utilized. </li></ul><ul><li>Planning involved goal setting and defining the action those need to be taken in order to achieve goals. </li></ul>
  4. 4. <ul><li>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. </li></ul>
  5. 5. <ul><li>Organizing </li></ul><ul><li>Organizing involves determining the task to be done, who will do them and how those task will be managed and coordinated </li></ul><ul><li>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. </li></ul>
  6. 6. <ul><li>Directing/Leading </li></ul><ul><li>Managers must be also capable of leading their subordinates to work together to achieve the organization goals. </li></ul><ul><li>Effective managers must try to understand individuals and group behavior, be able to motivate and discuss with their subordinates </li></ul>
  7. 7. <ul><li>Controlling </li></ul><ul><li>Controlling is to identify between planned and actual result, whether the organization is performing as what had been planned. </li></ul><ul><li>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 </li></ul>
  8. 8. BUSINESS VISION <ul><li>A vision statement describes what the organization aspires to be in the long term. </li></ul><ul><li>It is a description of the way in which the business wants to be perceived by others at some future date. </li></ul><ul><li>For example, TNB vision is “To be among the Leading Corporations in Energy and Related Businesses Globally&quot; </li></ul>
  9. 9. BUSINESS MISSION <ul><li>Many businesses also have mission. </li></ul><ul><li>Mission statements are statements of how entrepreneurs will achieve their purposes in the environments in which they conduct business. </li></ul><ul><li>It is also the reason why an organization exists. </li></ul><ul><li>For example, TNB mission is “We Are Committed to Excellence in Our Products and Services” </li></ul>
  10. 10. BUSINESS OBJECTIVES <ul><li>It is the starting point in effective management. </li></ul><ul><li>Defined as what does a business hopes and plan to achieve. </li></ul><ul><li>In other word, goals are performance target. </li></ul><ul><li>Goals differ from business to business depending on its purpose and mission. </li></ul><ul><li>Any business functions systematically because it sets goals and plan accordingly. </li></ul>
  11. 11. GOAL SETTING <ul><li>Purposes </li></ul><ul><li>To provides direction and guidance for all entrepreneurs </li></ul><ul><li>To help firms allocate resources </li></ul><ul><li>To define corporate culture </li></ul><ul><li>To help entrepreneurs assess business performance </li></ul>
  12. 12. <ul><li>SMART Concept </li></ul><ul><li>S= Specific </li></ul><ul><li>M= Measurable </li></ul><ul><li>A= Achievable </li></ul><ul><li>R= Realistic </li></ul><ul><li>T= Time frame </li></ul>
  13. 13. TYPES OF GOALS <ul><li>Long term goals relate to extended period of time, typically five years or more. </li></ul><ul><li>Intermediate goal are set for a period of one to five years. </li></ul><ul><li>Short term goal are set for perhaps one year and are develop for several different areas. </li></ul>
  14. 14. ORGANIZATIONAL STRUCTURE <ul><li>Organizational structure depends on the </li></ul><ul><li>needs of the organization </li></ul><ul><li>Steps are: </li></ul><ul><li>List all the work needed to be done in the organization </li></ul><ul><li>Group the work or job into section, unit or department </li></ul><ul><li>3.Construct diagrammatically through organizational chart </li></ul>
  15. 15. ORGANIZATIONAL CHART <ul><li>Organizational chart shows </li></ul><ul><li>Job position </li></ul><ul><li>Hierarchy </li></ul><ul><li>Span of control </li></ul>
  16. 16. TYPES OF ORGANIZATIONAL STRUCTURE <ul><li>Function </li></ul><ul><li>Product </li></ul><ul><li>Client </li></ul><ul><li>Number of workers </li></ul><ul><li>Region </li></ul><ul><li>Shifts </li></ul>
  17. 17. ORGANIZATIONAL STRUCTURE-FUNCTION
  18. 18. ORGANIZATIONAL STRUCTURE-PRODUCT
  19. 19. ORGANIZATIONAL STRUCTURE-CLIENT
  20. 20. ORGANIZATIONAL STRUCTURE-NUMBER OF WORKERS
  21. 21. ORGANIZATIONAL STRUCTURE-REGION
  22. 22. ORGANIZATIONAL STRUCTURE-SHIFTS
  23. 23. <ul><li>The steps in preparing an organisational plan </li></ul><ul><li>for a business: </li></ul><ul><li>The introduction to the Organisation </li></ul><ul><li>To develop an organisation chart </li></ul><ul><li>To prepare a list of administration personnel </li></ul><ul><li>To develop a schedule of tasks and responsibilities </li></ul><ul><li>To develop a schedule of remuneration </li></ul><ul><li>To determine the office equipment and supplies </li></ul><ul><li>To prepare an administration budget </li></ul>PREPARING AN ORGANISATIONAL PLAN
  24. 24. <ul><li>1.Introduction to the organisation </li></ul><ul><li>For the introduction, state the vision, mission and </li></ul><ul><li>objectives of the business organisation. </li></ul><ul><li>Business vision helps to prepare a small business to plan for the future and to achieve what it aspires to be. </li></ul><ul><li>Business mission is a statement that shows the purpose or reasons for its existence. </li></ul><ul><li>Business objectives are short term planning characterised by a more specific statements and with definite time frame. Use SMART concept. </li></ul><ul><li>Also include the following: business address, location plan, type of building and infrastructure. </li></ul>
  25. 25. <ul><li>2.Develop an organisation chart </li></ul><ul><li>Based on the structure of business, develop an </li></ul><ul><li>organisational chart that best suits the organisation. </li></ul><ul><li>The chart portrays the hierarchy and chain of command </li></ul><ul><li>of personnel in an organisation at a particular point of </li></ul><ul><li>time. The most commonly used organisational structure </li></ul><ul><li>by a small business is the line structure which is based </li></ul><ul><li>on : </li></ul><ul><li>Shifts </li></ul><ul><li>Number of workers </li></ul><ul><li>Functions </li></ul><ul><li>Products </li></ul><ul><li>Regions </li></ul><ul><li>Clients </li></ul>
  26. 26. 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
  27. 27. 4. Develop a schedule of Tasks and Responsibilities The next step is to prepare a schedule of tasks and responsibilities. For each 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 into Column one of TABLE 2. In column two, explain the tasks and responsibilities of each position. TABLE 2: SCHEDULE OF TASKS AND RESPONSIBILITIES POSITION TASKS AND RESPONSIBILITIES
  28. 28. 5.Develop a Schedule of Remuneration The remuneration of each personnel of all indirect workers has to be 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 employers is 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:
  29. 29. TABLE 3: SCHEDULE OF REMUNERATION POSITION NO. MONTHLY SALARY (RM) (A) EPF (RM) (B) SOCSO (RM) (C) TOTAL AMOUNT(RM) (A)+(B)+( C)
  30. 30. 6.Determine the Office Furniture and Fittings The business owner is to list all the office furniture and equipment 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 the office 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)
  31. 31. 7.The Preparation of The Administration Budget Upon the determination of the administration expenses classify the items into the following categories:  Capital Expenditures/ Fixed Asset Cost  Working Capital/Monthly Expenses  Other Expenses
  32. 32. ADMINISTRATION BUDGET ITEMS FIXED ASSET MONTHLY EXPENSES OTHER EXPENSES Land & Building Furniture & Fittings Vehicle(office use) Renovation Salary (EPF & SOCSO) Rent Utilities Office Supplies Business Registration Business Licence/Permit Deposit Professional Fees Road Tax/Insurance Courses Attended TOTAL xx xx xx xx xx xx xx xx xx xx xx xx xx xx
  33. 33. END OF MODULE 10

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