ORGANIZATIONAL PLAN

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

• S Specific
• M Measurable
• A Achievable
• R Realistic
• T Time frame

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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.

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ORGANIZATIONAL STRUCTURE

• Organizational structure depends on the
• needs of the organization
• Steps are
• List all the work needed to be done in the
  organization
• Group the work or job into section, unit or
  department
• 3.Construct diagrammatically through
  organizational chart

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ORGANIZATIONAL CHART

• Organizational chart shows
• Job position
• Hierarchy
• Span of control

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TYPES OF ORGANIZATIONAL STRUCTURE

• Function
• Product
• Client
• Number of workers
• Region
• Shifts

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ORGANIZATIONAL STRUCTURE-FUNCTION
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ORGANIZATIONAL STRUCTURE-PRODUCT
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ORGANIZATIONAL STRUCTURE-CLIENT
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ORGANIZATIONAL STRUCTURE-NUMBER OF WORKERS
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ORGANIZATIONAL STRUCTURE-REGION
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ORGANIZATIONAL STRUCTURE-SHIFTS
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PREPARING AN ORGANISATIONAL PLAN

• The steps in preparing an organisational plan
• for a business
• 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

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• 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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• 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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• 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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• 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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• 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.
• It would be made clearer, if a schedule of
  remuneration is
• developed as below

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• TABLE 3 SCHEDULE OF REMUNERATION

POSITION NO. MONTHLY SALARY (RM) (A) EPF (RM) (B) SOCSO (RM) (C) TOTAL AMOUNT(RM) (A)(B)( C)

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• 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)

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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

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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
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END OF MODULE 10