Ent300 module10

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Ent300 module10

  1. 1. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANORGANIZATIONALPLANMODULE 10
  2. 2. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANDEFINITION OF MANAGEMENTAccording to Mary Parker Follet it is “the art ofgetting things done through other people”.A process of planning all the resourcesefficiently, organized the resources effectively,leading then controlling the resources.Resources here refer to capital, manpower,technology and materials.
  3. 3. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN FUNCTIONS OF MANAGEMENTPlanning• 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.
  4. 4. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN• 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.
  5. 5. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANOrganizing• 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.
  6. 6. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANDirecting/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
  7. 7. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANControlling• 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
  8. 8. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN 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"
  9. 9. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN 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”
  10. 10. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN 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.
  11. 11. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN 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
  12. 12. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN• SMART ConceptS= SpecificM= MeasurableA= AchievableR= RealisticT= Time frame
  13. 13. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN 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.
  14. 14. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANORGANIZATIONAL STRUCTUREOrganizational 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
  15. 15. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN ORGANIZATIONAL CHARTOrganizational chart shows• Job position• Hierarchy• Span of control
  16. 16. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN TYPES OF ORGANIZATIONAL STRUCTURE• Function• Product• Client• Number of workers• Region• Shifts
  17. 17. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANORGANIZATIONAL STRUCTURE- FUNCTION
  18. 18. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANORGANIZATIONAL STRUCTURE- PRODUCT
  19. 19. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANORGANIZATIONAL STRUCTURE- CLIENT
  20. 20. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANORGANIZATIONAL STRUCTURE- NUMBER OF WORKERS
  21. 21. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANORGANIZATIONAL STRUCTURE- REGION
  22. 22. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANORGANIZATIONAL STRUCTURE- SHIFTS
  23. 23. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN PREPARING AN ORGANISATIONAL PLANThe steps in preparing an organisational planfor 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
  24. 24. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN1.Introduction to the organisationFor the introduction, state the vision, mission andobjectives 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.
  25. 25. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN2.Develop an organisation chartBased on the structure of business, develop anorganisational chart that best suits the organisation.The chart portrays the hierarchy and chain of commandof personnel in an organisation at a particular point oftime. The most commonly used organisational structureby a small business is the line structure which is basedon :• Shifts• Number of workers• Functions• Products• Regions• Clients
  26. 26. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN3.The preparation of Administration personnelAt this stage, lists all the personnel involved in the administrationsection of the business and those personnels who are not directlyinvolved in operation (i.e. indirect workers).Using a two column table, indicate the personnel position in onecolumn and the number of personnels in the second column. Thetable is as illustrated below: TABLE 1: LIST OF ADMINSTRATION PERSONNEL POSITION NO. OF PERSONNELS
  27. 27. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN4. Develop a schedule of Tasks and ResponsibilitiesThe 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 1intoColumn one of TABLE 2. In column two, explain the tasks andresponsibilities of each position. POSITION TASKS AND RESPONSIBILITIES TABLE 2: SCHEDULE OF TASKS AND RESPONSIBILITIES
  28. 28. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN5.Develop a Schedule of RemunerationThe remuneration of each personnel of all indirect workers has tobe taken into consideration beforehand. The remunerationincludes monthly salary or contractual wages, (daily, weekly oron project basis) and all provident fund contribution as well aswork 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% ofpersonnel’s monthly salary not exceeding RM2000.It would be made clearer, if a schedule of remuneration isdeveloped as below:
  29. 29. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANTABLE 3: SCHEDULE OF REMUNERATION POSITION NO. MONTHLY SALARY EPF SOCSO TOTAL (RM) (RM) (RM) AMOUNT(RM) (A) (B) (C) (A)+(B)+( C)
  30. 30. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN6.Determine the Office Furniture and FittingsThe 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 theadministration 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 QUANTITY TOTAL AMOUNT (RM) (RM)
  31. 31. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN7.The Preparation of The Administration BudgetUpon the determination of the administration expenses classifythe items into the following categories: Capital Expenditures/ Fixed Asset Cost Working Capital/Monthly Expenses Other Expenses
  32. 32. ADMINISTRATION BUDGET ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLANITEMS FIXED MONTHLY OTHER ASSET EXPENSES EXPENSESLand & Building xxFurniture & Fittings xxVehicle(office use) xxRenovation xxSalary (EPF & SOCSO) xxRent xxUtilities xxOffice Supplies xxBusiness Registration xxBusiness Licence/PermitDeposit xxProfessional Fees xxRoad Tax/Insurance xxCourses Attended xx xxTOTAL
  33. 33. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN END OF MODULE 10

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