ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ORGANIZATIONAL PLAN

ORGANIZATIONAL
PLAN
Hjh. Che Asniza Osman
Laila Mohammad Kamaruddin
Yasmin Kamal Khan
Azlin Shafinaz Mohd Arshad

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ORGANIZATIONAL PLAN

LEARNING OBJECTIVES
1.Students are able to understand the concept of management
functions
2.Students knows the importance of business mission and objectives.
3. Students are able to identify organizational structure.
4.Preparing organizational plan and budget.

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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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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.

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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.

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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 managers 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"

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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.

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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
M= Measurable
A= Achievable
R= Realistic
T= Time frame

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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

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ORGANIZATIONAL PLAN

ORGANIZATIONAL CHART
Organizational chart shows
Job position
Hierarchy
Span of control

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ORGANIZATIONAL PLAN

TYPES OF
ORGANIZATIONAL
Function
STRUCTURE
Product
Client
Number of workers
Region
Shifts

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ORGANIZATIONAL PLAN

ORGANIZATIONAL
STRUCTURE-FUNCTION

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ORGANIZATIONAL PLAN

ORGANIZATIONAL
STRUCTURE-PRODUCT

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ORGANIZATIONAL PLAN

ORGANIZATIONAL
STRUCTURE-CLIENT

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ORGANIZATIONAL PLAN

ORGANIZATIONAL
STRUCTURE-NUMBER OF
WORKERS

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ORGANIZATIONAL PLAN

ORGANIZATIONAL
STRUCTURE-REGION

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ORGANIZATIONAL PLAN

ORGANIZATIONAL
STRUCTURE-SHIFTS

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ORGANIZATIONAL PLAN

PREPARING AN
ORGANISATIONAL PLAN
The steps in preparing an organisational
plan
for a business:
1.
2.
3.
4.
5.
6.
7.

The introduction to the Organisation

To develop an organisation chart
To prepare a list of administration personnel
To develop a schedule of tasks and
responsibilities
To develop a schedule of remuneration
To determine the office equipment and supplies
To prepare an administration budget

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.

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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

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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
POSITION
NO. OF PERSONNELS
one
column and the number of personnels in the second column.
The
table is as illustrated below:
TABLE 1: LIST OF ADMINSTRATION PERSONNEL

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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 POSITION
TASKS AND RESPONSIBILITIES
Column one of TABLE 2. In column two, explain the tasks and
responsibilities of each position.
TABLE 2: SCHEDULE OF TASKS 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
personnels monthly salary not exceeding RM2000.

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ORGANIZATIONAL PLAN

TABLE 3: SCHEDULE OF REMUNERATION

POSITION

NO.

MONTHLY
SALARY (RM)
(A)

EPF
(RM)
(B)

SOCSO
(RM)
(C)

TOTAL
AMOUNT(R
M)
(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)
TYPE

PRICE
/UNIT
TOTAL AMOUNT
TABLE
4: LIST
OF OFFICEQUANTITY
FURNITURE AND FITTINGS
(RM)

(RM)

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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

ADMINISTRATION
BUDGET
ORGANIZATIONAL
PLAN

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ITEMS

FIXED
ASSET

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

xx
xx
xx
xx

TOTAL

MONTHLY
EXPENSES

OTHER
EXPENSES

xx
xx
xx
xx
xx
xx
xx
xx
xx
xx

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END OF MODULE 10