CHAPTER THREE ORGANIZATION AND MANAGEMENT PLAN.

CHAPTER THREE

                                   ORGANIZATION AND MANAGEMENT PLAN.

3.1 Organization structure

  • Have a chart to represent the following organization structures
  • Line structure
  • Functional structure
  • Divisional structure
  • Matrix structure
  • Project structure
  • Committee structure

3.2 Management team/key personnel

  • Include all members of management team for your enterprise e.g. procurement manager, human resource manager, managing director, production manager, marketing manager, finance manager etc.

3.2.1 Duties and responsibilities.

  • Describe each of the managers stated above
  • Give the qualifications e.g. managing director one must have a master’s degree and CPAK depending on the nature of the business
  • Give the experience needed e.g. 15 years work experience at a managerial position.

3.2.2 Purchasing manager

  • Give duties and responsibilities
  • Qualifications
  • Experience

3.3 Other personnel.

Includes other employees who are not in the management team.

Table 3

Title Number Qualifications Duties
Accountant 1 Bcom,cpa k Budgeting, financial reports, payment of salaries
Sales rep 2 KCSE c and diploma in sales and marketing Distributing products and sales promotion
Security officer 1 At least KCSE

experienced

Provision of security

 

3.4 Recruitment, training and promotion

3.4.1 Recruitment

  • Describe how managers and other personnel will be recruited
  • For management team, the following techniques may be used; poaching, advertisement, recruitment agencies.
  • For the other personnel, the following techniques may be used: poaching, recruitment agencies and word of mouth.

3.4.2 Training

  • Induction training will be given to newly employed staff and also for those who are promoted.
  • One may use on job training
  • Off job training including workshops and seminars for staff may be employed.
  • Explain the purpose of training.

3.4.3 Promotion.

  • Devise the criteria of promoting personnel e.g. promotion on basis of evaluation, training and attaining a given qualification and experience.

3.5 Remuneration and incentives.

3.5.1Remuneration

  • Indicate firm policy on remuneration e.g. to offer attractive salaries to employees so as to motivate and retain them.
  • Devise excellent payment terms, monthly and yearly

Table 4

Title number Monthly pay (Ksh) Allowances/Benefits(Ksh)
Managing director 1 40,000 20,000
Human resource manager 1 30,000 15,000
Marketing manager 1 25,000 25,000
Security officer 1 5,000 3,000

 

3.5.2 Incentives

  • Includes bonuses, commission, lunch, tea and overtime allowance.

3.6 Licenses, permits and by-laws

3.6.1 Licenses

  • Trading licenses are paid for in order to start trading
  • Establish where you are going to get the license and know the charges i.e. from national or county government
  • State the purpose of the trading license.

3.6.2 Permits

  • One should visit the relevant office for assistance e.g.,
  • Milk business, one gets permit from Kenya dairy board
  • Beer-Kenya liquor licensing board
  • School-ministry of education/district education board.

3.6.3 By-laws

  • The business need to comply with the by-laws issued by authorities in place e.g. international, national or county governments.
  • Give reasons why your business needs to comply with the set guidelines.

3.7 Support services.

  • The business will require support services to  enable it carry out its operations effectively  ie

3.7.1 Banking services

  • Choose the best bank and branch
  • Open the account that suits you
  • Give the purpose of the account.

3.7.2 Insurance services

  • Settle with the best insurance company that will insure your firm
  • Indicate what you want to insure against
  • How much will the insurance package cost you?

3.7.3 Consulting services.

  • Depending on the nature of the business, establish the best consultancy services providers e.g. for a school, one can get advice from teachers or lecturers.
  • Indicate your consultants and the kind of advice expected.

3.7.4 Legal services

  • The services will be needed when writing contracts, drafting legal letters, interpreting labor laws and employment related concerns and issues.
  • Indicate the legal firm and lawyers
  • Indicate the registered office.
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