Ent300 - Module10 - Organizational Plan

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
Chapter 10
ORGANIZATIONAL
PLAN
Hjh. Che Asniza Osman

Laila Mohammad Kamaruddin
Yasmin Kamal Khan
Azlin Shafinaz Mohd Arshad
ORGANIZATIONAL PLAN
DEFINITION OF MANAGEMENT
According to Mary Parker Follet it is “the art of
getting things done through 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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ORGANIZATIONAL PLAN
FUNCTIONS OF MANAGEMENT
PLANNING
CONTROLLING GOALS ORGANIZING
LEADING
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ORGANIZATIONAL PLAN
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.
• 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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ORGANIZATIONAL PLAN
Organizing
• Organizing involves determining what 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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ORGANIZATIONAL PLAN
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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ORGANIZATIONAL PLAN
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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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"
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”
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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.
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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
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ORGANIZATIONAL PLAN
SMART Concept
S = Specific Goals must target specific and
identifiable areas for improvement.
M = Measurable Goals should be quantified.
Goals must be understood, capable of

A = Achievable being implemented and acceptable.
R = Realistic Sufficient resources and time, given

other contingencies.
T = Time frame Time must be

accomplishing the goal.
specified for
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ORGANIZATIONAL PLAN
TYPES OF GOALS
• Long-term goal 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 PLAN
ORGANIZATIONAL STRUCTURE
Organizational structure depends on the needs
of the organization
STEPS are:
1. List all the work needed to be done in the
organization
2. Group the work or job into section, unit or
department
3. Construct the diagram through organizational
chart
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ORGANIZATIONAL PLAN
ORGANIZATIONAL CHART
Organizational Chart shows:
CEO
• Job Position
Marketing Finance Production Admin & HR
• Hierarchy Manager Manager Manager Manager
• Span of Control Executive 1 Executive 1 Executive 1 Executive 1
Executive 2 Executive 2
Executive 3
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ORGANIZATIONAL PLAN
TYPES OF ORGANIZATIONAL
STRUCTURE
• Function
• Product
• Client
• Number of workers
• Region
• Shifts
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ORGANIZATIONAL PLAN
by FUNCTION
MANAGER
(Entrepreneur)
Administration Marketing Operation Finance
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ORGANIZATIONAL PLAN
by PRODUCT
Manager
(Entrepreneur)
Pharmaceutical Personal Care

Products Products
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ORGANIZATIONAL PLAN
by CLIENT
Manager
(Entrepreneur)
Community Loans
Corporate Real Estate
Banking Agricultural
Banking Mortgage
Banking
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ORGANIZATIONAL PLAN
by NUMBER OF WORKERS
Manager
(Entrepreneur)
Supervisor 1 Supervisor 2 Supervisor 3

(20 workers) (15 workers) (7 workers)
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ORGANIZATIONAL PLAN
by REGION
Manager
(Entrepreneur)
Northern Central Southern Eastern

Region Region Region Region
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ORGANIZATIONAL PLAN
by SHIFTS
Manager
(Entrepreneur)
Morning Shift Noon Shift Midnight Shift

(7am-3pm) (3pm-11pm) (11pm-7am)
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ORGANIZATIONAL PLAN
PREPARING
AN ORGANISATIONAL PLAN
The steps in preparing an organizational plan for a
business:
1. The introduction to the Organization
2. To develop an organization chart
3. To prepare a list of administration personnel
4. To develop a schedule of tasks and responsibilities
5. To develop a schedule of remuneration
6. To determine the office equipment and supplies
7. To prepare an administration budget
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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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ORGANIZATIONAL PLAN
2. Develop an Organisation Chart

Based on the structure of business, develop an
organizational chart that best suits the organization.
The chart portrays the hierarchy and chain of command of
personnel in an organization at a particular point of time.
The most commonly used organizational structure by a small
business is the line structure which is based on :
– Shifts
– Number of workers
– Functions
– Products
– Regions
– Clients 25
ORGANIZATIONAL PLAN
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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ORGANIZATIONAL PLAN
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
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ORGANIZATIONAL PLAN
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 RM2,000.
It would be made clearer, if a schedule of remuneration is

developed as below:
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ORGANIZATIONAL PLAN
TABLE 3: SCHEDULE OF REMUNERATION
MONTHLY SALARY EPF SOCSO TOTAL

POSITION NO. (RM) (RM) (RM) AMOUNT(RM)
(A) (B) (C) (A)+(B)+( C)
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ORGANIZATIONAL PLAN
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
PRICE /UNIT TOTAL AMOUNT
TYPE QUANTITY
(RM) (RM)
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ORGANIZATIONAL PLAN
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 – e.g. business registration,
licensing, insurance premium, road tax, stamp duties,
legal and professional fees, deposits – for rental and
utilities etc.
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ADMINISTRATION BUDGET
ORGANIZATIONAL PLAN
FIXED MONTHLY OTHER

ITEMS
ASSET EXPENSES EXPENSES
Land Building xx
Furniture & Fittings xx
Vehicle (office use) xx
Renovation xx
Salary (EPF & SOCSO) xx
Rent xx
Utilities xx
Office Supplies xx
Business Registration xx
Business Licence/Permit
Deposit xx
Professional Fees xx
Road Tax/Insurance xx
Courses Attended xx
xx
TOTAL
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ORGANIZATIONAL PLAN
END OF MODULE 10
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ORGANIZATIONAL PLAN
TUTORIAL
1. How does the planning function relate to other managerial functions in a

small business? (10 marks)
2. Discuss the importance of identifying the business mission and objectives

for a small business.
(10 marks)
3. What do you understand by organizational structure? Briefly explain and

illustrate type of organizational chart that suitable for company’s that have
specialization. (10 marks)
4. Discuss the benefits of EPF and SOCSO to employees. (10 marks)
ALL THE BEST!

34

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ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP

Hjh. Che Asniza Osman

CONTROLLING GOALS ORGANIZING

• Organizing involves determining what task

• Managers must be also capable of leading

• Controlling is to identify between planned

M = Measurable Goals should be quantified.

Goals must be understood, capable of

R = Realistic Sufficient resources and time, given

T = Time frame Time must be

• Long-term goal relate to extended period

• Span of Control Executive 1 Executive 1 Executive 1 Executive 1

Administration Marketing Operation Finance

Pharmaceutical Personal Care

Supervisor 1 Supervisor 2 Supervisor 3

Northern Central Southern Eastern

Morning Shift Noon Shift Midnight Shift

1. Introduction to the Organisation

• Business vision helps to prepare a small business to

2. Develop an Organisation Chart

3. The preparation of Administration Personnel

4. Develop a Schedule of Tasks and Responsibilities

This may be illustrated by drawing a two column table as in TABLE 2.

POSITION TASKS AND RESPONSIBILITIES

5. Develop a Schedule of Remuneration

The remuneration of each personnel of all indirect workers has to

Take note that provident fund contribution to EPF by employers is

It would be made clearer, if a schedule of remuneration is

TABLE 3: SCHEDULE OF REMUNERATION

MONTHLY SALARY EPF SOCSO TOTAL

6. Determine the Office Furniture and Fittings

Develop a list of office furniture and fittings as shown below.

7. The Preparation of The Administration Budget

Upon the determination of the administration expenses

 Capital Expenditures/Fixed Asset Cost

FIXED MONTHLY OTHER

1. How does the planning function relate to other managerial functions in a

2. Discuss the importance of identifying the business mission and objectives

3. What do you understand by organizational structure? Briefly explain and

4. Discuss the benefits of EPF and SOCSO to employees. (10 marks)

ALL THE BEST!

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