CHAPTER THREE:

3.0 ORGANIZATIONS AND MANAGEMENT PLAN:

Business management and organization plan describes the business management team and staff
and how the business ownership is structured. Also will comprise of the employees who shall be
involved in daily running of the business, their duties and responsibilities. The employees shall
ensure all operations and tasks are worked out with the given period of time. It also involves of
recruitment and training of new employees into the business as it grows and expands their
salaries and incentives, legal requirements in business professional advisers and support
services.

3.1 ORGANI9ZATIONAL STRUCTURE

The business will be having organization structure which will manage the business effectively
also insuring the workers in the right place at the right time.

Also will be responsible to monitor the product before supplying into markets whether good
standards are satisfied with clients. The organization structure will be responsible to keep
records of finance though an accountant

GENERAL MANAGER

ASSISTANT MANAGER

Human Resource
Manager Transport
Manager
Finance manager
Watchman

Secretary Cleaner

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3.2 MANAGEMENT TEAM

A business management plan can be broken into section detailing the following business
information

1. Ownership structure
The ownership structure section describes the legal structure of the business and in this
case the business ownership is a sole – proprietorship
2. Internal management team

The internal management team describes the main business managed by a manager who is also
a sole owner of the business. The duties will be

- Planning

- Co-ordination

- Organizing

- Staffing

3. External management resources

4. Human resource needs

The manager will also make payment train her staff help setting and leaching goals and
objectives in the business qualify control and making crucial decisions. The manage team will go
to training after every five month and any other trade shows or exhibitions where they arise

Key management team

Sham Hardware enterprise shall have the following as the key management team

I. Managing director
II. Assistant managing director
III. Accountant

III.2.1 Duties of key management team

- Job title: managing director

- Section: management

- Answerable: none

- Authority: maximum

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 DUTIES

- Making decision

- Organizing the business

- Planning and co-coordinating business activities

- Staffing that is start recruitment in order to fill space and also fixing

- Evaluating business performance

- Control all activities which will be taking place

Responsibilities

- Motivation at the business employees

- Regulating the stock of the hence making it to progress successively

- Responsible for legal matters of the business.

Qualifications

- Diploma in building and civil engineering course

- Kenya Certificate of Secondary Education

- Certificate on computer packages and from a recognized Institution

Work: Experience

Have experience in field i.e. attachment whereby gained managerial skills and also by getting
skills from book and class

Job title: assistant managing directors

Sector: management

Answerable: managing director

Authority: minimum

DUTIES

- Ensure that the customer is comfortable

- Keep daily records of the business

- Answerable to the managing director

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- Ensure smooth flow of work in the business

- Co-ordinate of business activities

- Ensure there is available stock in the business

Qualification

- Holder a Diploma in construction management or business management

- Have experienced of 2years in management

Job title: Accountant

Section: accounts Department

Answerable to the managing director and assistant managing director.

Duties

- Prepare report of audit and recommendation to the management and access the effectiveness
of main control accuracy of financial record and efficiency of organization.

- Taking orders getting into the business

- Stock controlling

- Keeping daily record of good sells.

Responsibilities

- Writing requisition of what to be ordered into the business

- Taking daily stock

- Writing of receipts

- Ensuring what is ordered is to be delivered

Qualification

- Have a pass in part III of certified internal audit ( CIA) or certificate in CPA examination

- Computer literacy

- Good working knowledge of accounting packages and financial system

- Must have 24-40 year

- At least one gear of experience

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STAFF

There are employees who shall be performing various duties in the business to ensure smooth
flow of work

They are named as follow

Job title: sales person

Solution: sales

Answerable: to assistant managing director

Duties

- Have overall responsibilities of initiating and executing sales

- Do market survey or prices

- Promoting and development effective service to client to minimizing sales volume and revenue

Responsibilities

- Receive involves and cash on delivering eg goods

- Looking for good market of the goods

- Selling of goods

Qualification

- Must have diploma in sales and marketing

- Have excellent communication

- International and presentable skills

JOB TITLE: Store Keeper

SECTION: Store keeping

Answerable: to assistant managing Director

Duties

- Keep the records of goods in the store

- Release the goods from store as per the order

- Give requisition of goods to be stored

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Responsibilities

- Lock the store

-Ensure the store is clean

- Ensure goods are well arranged in the store

Qualification

- Have a working experience

- Have the Kenya Certificate of Secondary Education

- Have Certificate in store keeping

JOB TITLE: Casual Workers

Section: off loading of cements and other goods

Answerable: Assistant Managing Director

Duties

- Off loading cement

- Keep records on cement off loaded

- Five an order of materials to be purchased

Responsibilities

Ensuring the order is done

Qualification

- Have a Certificate of KCSE

- Should be innovative and creative

- Should be effective and effective

- Should be able to communicate with customers

Duties

- Importation of people /worker

- Transport of goods and services

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Qualification

Should have a legal diving license from a recognized driving school and 3 years experience.

3.4 RECRUITIMENT, TRAINING AND PROMOTION

The business will be recruiting employees through the internal and external recruitment. The
internal recruitment is more better because there is no wastage of time and will motivate the
workers to work hard in order to have a great job satisfaction.

The sole proprietor will promote the workers in terms of performance of task assigned by the
managing director and this will increase more and will create a feeling of discipline and respect
for senior position promotion will also lead to an increase in productivity.

TRADING

Training programs will facilitate further acquirement of skills, knowledge and also advancement
of education to the staff members. The managing director will be in charge of training,
organizing how and who goes for training. The staff member will also be sponsored to attend
seminars and exhibition which will be of benefit to their relevant areas of specification.

3.5 SALARIES REMUNERATION AND INCENTIVES

The sole proprietor will be paying the workers better salaries which will motivate them and
sustain them in premises for long periods of time. The workers will be paid through their
accounts so that will be supposed to submit their accounts number to the organization the
fair remuneration will make the business more productive because the workers will put
more effort to achieve their goals. The table below shows the salaries of the workers.

N WORKERS SALARIES PER MONTH COMMISION RECIEVED

O
1 Managing Director 30,000
2 Ass Managing Director 25,000
3 Accountant 20,000 20%
4 Sale man 10,000
5 Driver 15,000
6 Store Keeper 10,000
7 Casual worker 8,000
8 Watchman 8,000
TOTALS 14,000

This business will offer a strong incentive to the more efficient and experiences workers and at
the same time provide the minimum needs of beginners and lets efficient work and these will
make the workers to put more effort to their sectors handling the business will be organizing
education trips for the workers like visiting trade fair exhibitions to learn more skills and ideas to

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improve productivity of the business. The sole proprietor will offer allowance after working for
more than 3 years in the premises and also training will increase the knowledge and skills of
employees in the performance of particulars job

3.6. LEGAL REQUIREMENTS

The business will be registered by the government in order to overcome challenges that are
faced by other sole- proprietors within the market. The proprietor will run the business which
will be legally licensed which will be issued by the local authority to Ksh 6000 and will be
renewed annually.

The business will be bound by law which is indicated by Registration Company ACT CAP reg49
which allows business to operate effectively

INCOME TAX CERTIFICATE

Will be registered with Kenya revenue authority which enables the business to pay the required
taxes to the government.

THE BY- LAWS

By- laws are laws based on labor and premises. Requirement of the premises laws will include
building Inspection, five license, good drainage and sanitation systems and good provision
working locations to the employees. The business will also adhere the work man compensation
act that is under the common law it will also adhere to the labor that is the employees act which
gives provision on number of days employees are supposed to work in a week.

3.9 PROFFESSIONAL ADVISORS AND SUPPORT SERVICES

AUDITOR

NASIR ASSOCIATES

P.O BX 1120

WAJIR

The firm shall give the auditing services which include calculating the returns income tax and the
general flow of cash in and out of business

The sole – proprietor will open current account in the Kenya Co-operative Bank which will allow
the business to deposit and withdraw money any time for the business to run smoothly.

2. LEGAL ADVISOR

The business will have a lawyer who will represent the business in court and advise sole
proprietor legal formalities of the business will be insured by the pioneer insurance company

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which will provide protections against the risk of loss and give a sense of securing it will enable
the proprietor to face unforeseen loss and pay that premieres to the insurance company.

HASSAN AND ADVOCATOR

P.O BOX 790

WAJIR

Give advice on how to approach the current market

Shall give advice on how to start the business

Give general overview of how the business is growing.

The business will have an auditor who will be auditing ledger books at accounts. Enterprise will
acquire only one broker who will assist to venture into wide market to sell products on behalf of
the sole proprietor. The business will also have postal services in order to send and receive
letters, mails and other documents. The business will have telephone services through Telkom
Kenya which will assist to call and receive telephone within the country.

CHEPTER FOUR