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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