ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN Hjh. Che Asniza Osman Laila Mohammad Kamaruddin Yasmin Kamal Khan Azlin Shafinaz Mohd Arshad

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP 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.

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN 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.

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.

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN 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.

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP 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

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP 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

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"

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”

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.

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

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN SMART Concept S= Specific M= Measurable A= Achievable R= Realistic T= Time frame

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.

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP 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 diagrammatically through organizational chart

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN ORGANIZATIONAL CHART Organizational chart shows Job position Hierarchy Span of control

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN TYPES OF ORGANIZATIONAL STRUCTURE Function Product Client Number of workers Region Shifts

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN ORGANIZATIONAL STRUCTURE- FUNCTION Manager (Entrepreneur) Administration MarketingOperationFinancial

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN ORGANIZATIONAL STRUCTURE- PRODUCT Manager (Entrepreneur) Product XProduct YProduct Z

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN ORGANIZATIONAL STRUCTURE- CLIENT Manager (Entrepreneur) Customer 1 Customer 2Customer 3

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN ORGANIZATIONAL STRUCTURE- NUMBER OF WORKERS Manager(Entrepreneur) Supervisor 1 (20 workers) Supervisor 2 (15 workers) Supervisor 3 (7 workers)

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN ORGANIZATIONAL STRUCTURE- REGION Manager (Entrepreneur) Northern Region Central Region Southern Region Eastern Region

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN ORGANIZATIONAL STRUCTURE- SHIFTS Manager (Entrepreneur) Morning Shift (7am-3pm) Noon Shift (3pm-11pm) Midnight Shift (11pm-7am)

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN The steps in preparing an organisational plan for a business: 1.The introduction to the Organisation 2.To develop an organisation 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 PREPARING AN ORGANISATIONAL PLAN

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP 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.

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN 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

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP 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 POSITIONNO. OF PERSONNELS

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP 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 POSITIONTASKS AND RESPONSIBILITIES

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP 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 RM2000. It would be made clearer, if a schedule of remuneration is developed as below:

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN TABLE 3: SCHEDULE OF REMUNERATION POSITIONNO.MONTHLY SALARY (RM) (A) EPF (RM) (B) SOCSO (RM) (C) TOTAL AMOUNT(RM) (A)+(B)+( C)

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP 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 TYPEPRICE /UNIT (RM) QUANTITYTOTAL AMOUNT (RM)

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP 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

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN ADMINISTRATION BUDGET ITEMSFIXED 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

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP ORGANIZATIONAL PLAN END OF MODULE 10