1. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
ORGANIZATIONAL
PLAN
MODULE 10

2. 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.

3. 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.

4. 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.

5. 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.

6. 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

7. 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

8. 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"

9. 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”

10. 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.

11. 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

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

13. 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.

14. 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

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

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

17. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
ORGANIZATIONAL STRUCTURE-
FUNCTION

18. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
ORGANIZATIONAL STRUCTURE-
PRODUCT

19. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
ORGANIZATIONAL STRUCTURE-
CLIENT

20. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
ORGANIZATIONAL STRUCTURE-
NUMBER OF WORKERS

21. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
ORGANIZATIONAL STRUCTURE-
REGION

22. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
ORGANIZATIONAL STRUCTURE-
SHIFTS

23. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
PREPARING AN
ORGANISATIONAL 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

24. 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.

25. 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

26. 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

27. 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

28. 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:

29. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
TABLE 3: SCHEDULE OF REMUNERATION
POSITION NO. MONTHLY SALARY EPF SOCSO TOTAL
(RM) (RM) (RM) AMOUNT(RM)
(A) (B) (C) (A)+(B)+( C)

30. 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 QUANTITY TOTAL AMOUNT
(RM) (RM)

31. 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

32. ADMINISTRATION BUDGET
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ORGANIZATIONAL PLAN
ITEMS FIXED MONTHLY OTHER
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

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