ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ORGANIZATIONAL PLAN

ORGANIZATIONAL
PLAN
Pensyarah:
Raden Mohd Ngisomuddin Bin Masduki
Fakulti Pengurusan Perniagaan, UiTM Kedah
HP: 019-3577579, Off: 04-4562406, e-mail: raden188@kedah.uitm.edu.my

Nota disediakan oleh:

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

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 managers 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 STRUCTUREFUNCTION

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ORGANIZATIONAL PLAN

ORGANIZATIONAL STRUCTUREPRODUCT

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ORGANIZATIONAL PLAN

ORGANIZATIONAL STRUCTURECLIENT

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ORGANIZATIONAL PLAN

ORGANIZATIONAL STRUCTURENUMBER OF WORKERS

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ORGANIZATIONAL PLAN

ORGANIZATIONAL STRUCTUREREGION

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ORGANIZATIONAL PLAN

ORGANIZATIONAL STRUCTURESHIFTS

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

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.

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

POSITION

NO. 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.
POSITION

TASKS AND RESPONSIBILITIES

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.
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

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)
TABLE 4: LIST OF OFFICE FURNITURE AND FITTINGS

TYPE

PRICE /UNIT
(RM)

QUANTITY

TOTAL 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

ITEMS

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ADMINISTRATION
BUDGET
ORGANIZATIONAL PLAN

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

FIXED
ASSET

MONTHLY
EXPENSES

OTHER
EXPENSES

xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx