Lecture Content
Introduction Business Strategies and goals Organization Structure Personnel Planning Administration Budget Personnnel Management and Legal Act
Learning Outcomes
To be able understand basic personnel planning in business plan To be able understand role and definition small and medium enterprises (SME) in entrepreneurship To be able identify managerial function in business venturing To be able develop the complete administrative budget
Introduction
Managing and developing Small medium enterprises (SMEs) - New Economy Policy (1971-1990), RM4 (2011-2020) Survey 1994 12,000 SMEs in Malaysia Employed 33% of workforce in manufacturing sector (Soon-Yau Foong,1999)
Small business : Paid-up capital < RM500,000 EKS (Small and Medium Enterprises) : Paid-up capital < RM2.5 million
DEFINITION SMEs
SMIDEC
2 scope (annual sales value and total employee)
Medium sized business Annual sales turnover between RM10 million and RM25 million and employ not more than 150 full time workers Small sized business Annual sales turnover not more than RM10 million and employs not more than 50 full time workers
Managerial Functions
Administrative Finance Human Resources Logistic Inventory Production & Operation Marketing
Organisational Structure
Functions Structure Regions/Parts Structure Matrics Structure Clients Structure Products Structure
Personnel Planning
Job Analysis Job Description Job Specification Personnel Selection and Recruitment Employees Retaining
Administrative Budget
Employees Provident Fund (EPF) Social Security Organisation (SOCSO) Employment Act 1955
Managerial Functions
Owner s managerial skill & capabilities In Msia: 46% new venture failed within 10 yrs; 64% owner-mgrs had no managerial experience and majority didn t acquire training in mgmt. Refer to planning, organizing, leading and controlling of business input. Business input capital, manpower, technology and materials.
Planning Function
Activity of formulating company s policy and procedure to ensure the attainment of business mission and objectives with effective and efficient means. Business vision, goals/objectives.
Organizing Function
Activity of designing an organizational structure, dividing and assigning jobs and tasks among departments, sections or units besides handling the infrastructure and .operation methods.
Leading Function
The act of getting the job done through other people Managing group of people, motivation, subordinates feedback.
Controlling Function
Monitoring function to ensure that activities carried out are on the right track in achieving the goals set out by the business. Compare progress against business objectives/targets. Deviation corrective action/ device an alternative strategy.
Organisation a social unit which comprises people performing different tasks in a coordinated manner in order to achieve organisational goals. Organisational Principles: division of work, authority and responsibility, unity of command, span of control, delegation of authority and responsibility.
Organization structure
The ways an organization divides its labor into distinct tasks and then coordinates them the pattern of jobs and groups of jobs in an organization. It is an important cause of individual and group behavior. Often discussed as organizational chart
Functional structure
An organization in which similar and related occupational specialties are grouped together Jobs are combined according to the functions of the organization
Functional Structure
OBM Company
Engineering
Reliability
Finance
Public Relations
Manufacturing
Distribution
Human Resources
Purchasing
Divisional Structure
An organization made up of self-contained units
Exhibit 5.9
Product structure
All jobs associated with producing and selling a product or product line will be placed under the direction of one manager Product becomes the preferred basis as a firm grows by increasing the number of products it markets
Product Structure
OBM Company
Commercial Appliances
Automotive Products
Customer Structure
Structure is based on different categories of customers have independent needs that differ from each other The importance of customer satisfaction has stimulated firms to search for creative ways to serve people better
Customer Structure
OBM Company
Retail Stores
Mail Order
On-Line Sales
Institutional Sales
Government Contracts
Geographic/regional Structure
Establish groups according to geographic area The logic is that all activities in a given region should be assigned to a manager Advantageous in large organizations because physical separation of activities makes centralized coordination difficult Provides a training ground for managerial personnel
Matrix structure
An organization in which specialists from functional departments are assigned to work on one or more projects led by a project manager
Exhibit 5.10
Exhibit 5.10
Mixed structure
Is a hybrid structure Combination of at least two structure Purpose to gain the advantages of one structure and reduce its disadvantages by incorporating the strengths of different structure
Personal Planning
Three basic need to be prepare by entrepreneur: 1. Job Analysis (Analisis tugas) systematic process to indentify tasks and determine skill and knowledge to perform a job. 2. Job Description (Huraian Jawatan) Written statement outlining a given job. It states the functions, duties and responsibilities.
Personal Planning
3.
Recruitment Process
Process of searching, identifying and selecting qualifies candidates for positions in organisation.
Selection process (3 common tools)
1. Job application form 2. Job interview 3. Selection test
Employee Retention:
1.Compensation monetary rewards given to the employees in term of pay)
Employee Retention:
2. Fringe Benefit (monetary and non monetary rewards given to the employee)
Bonuses (Monetary) Insurance Paid holiday Training Club membership Parking lot