ADMINISTRATION PLAN

Dr. Azlin Shafinaz Mohamad Arshad

Malaysian Academy of SME & Entrepreneurship
Development
(MASMED)
 LEARNING OUTCOMES

▪ To understand the concept of

administration function in business
▪ To prepare an administration plan for
the proposed project
 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.
 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.
 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.
 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.
 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
 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
 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.
 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.
 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.
 SMART Concept
S= Specific

M= Measurable

A= Achievable

R= Realistic

T= Time frame
 ORGANIZATIONAL STRUCTURE
1. List all the work needed to be done in the
organization.
2. Group the work into section, unit or department.
3. Construct organizational chart.

ORGANIZATIONAL CHART
1. Job position
2. Hierarchy
3. Span of control
 ORGANIZATIONAL
STRUCTURE-FUNCTION

Manager
(Entrepreneur)

Administration Marketing Operation Financial

 ORGANIZATIONAL
STRUCTURE-PRODUCT

Manager
(Entrepreneur)

Product X Product Y Product Z

 ORGANIZATIONAL
STRUCTURE-CLIENT

Manager
(Entrepreneur)

Customer 1 Customer 2 Customer 3

 ORGANIZATIONAL STRUCTURE-
NUMBER OF WORKERS

Manager(Entrepreneur)

Supervisor 1 Supervisor 2 Supervisor 3

(20 workers) (15 workers) (7 workers)
 ORGANIZATIONAL
STRUCTURE-REGION

Manager
(Entrepreneur)

Northern Central Southern

Eastern Region
Region Region Region
 ORGANIZATIONAL
STRUCTURE-SHIFTS

Manager
(Entrepreneur)

Morning Shift Noon Shift Midnight Shift

(7am-3pm) (3pm-11pm) (11pm-7am)
 PREPARING
ADMINISTRATION PLAN
1. To develop an organization chart
2. To prepare a list of administration personnel
3. To develop a schedule of tasks and
responsibilities
4. To develop a schedule of remuneration
5. To determine the office equipment and
supplies
6. To prepare an administration budget
 1. Organization Chart
 The chart portrays the hierarchy and chain of
command of personnel in an organization at a
particular point of time.
 The most commonly used organizational structure by a
small business is the line structure which is based on :
❑Shifts
❑Number of workers
❑Functions
❑Products
❑Regions
❑Clients
 2. Administration Personnel
At this stage, lists all the personnel involved in
the administration section of the business and
those personnel's 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 personnel's in the second column.
POSITION NO. OF PERSONNELS
 3. Schedule of Tasks & Responsibilities

The next step is to prepare a schedule of tasks

and responsibilities.
For each personnel position explain its main
tasks and responsibilities.
POSITION TASKS AND RESPONSIBILITIES
 4. 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.
 Fund contribution to EPF by employers is 12% (subject to
regulatory changes) of base pay & SOCSO contribution
will be based on an average of 2.5% of personnel’s
monthly salary not exceeding RM2000.
POSITION NO. MONTHLY SALARY (RM) EPF (RM) SOCSO (RM) TOTAL (RM)
(A) (B) (C) (A)+(B)+(C)
 5. Office Furniture and Fittings

List all the office furniture and equipment that

are necessary for the administration section
which include all office supplies.

TYPE PRICE /UNIT QUANTITY TOTAL AMOUNT

(RM) (RM)
 6. Administration Budget
Classify administration expenses the items into
the following categories:
 Capital Expenditures/ Fixed Asset Cost
 Working Capital/Monthly Expenses
 Other Expenses
 ADMINISTRATION BUDGET
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 xx
Deposit xx
Professional Fees xx
Road Tax/Insurance xx
Courses Attended xx
TOTAL