Planning and organizing
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Transcript of Planning and organizing
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PART IV
REPORTERS:DIELYN P. HIJOSA
JINKEE B. MALLARE
CLEO A. ALAYON
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…. interest,
….experiences,
…. skills,
….the community needs
EVALUATE YOUR
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Human Relations
Social Contacts
Business Experience
Physically Fit
POSITIVE PERSONAL QUALITIES
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• 1. PERSONAL SATISFACTION
• 2. FAMILY INVOLVEMENT
• 3. INDEPENDENCE AND POWER
• 4. SOCIAL ACTIVITIES
• 5. PROFIT EXPECTATION
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•An organization is a group of two or more persons who work together to attain a common set of goal.
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• Organizing is a process of combining and coordinating resources and activities in order to accomplish efficiently and effectively certain objectives.
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• An organizational structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.
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SINGLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
COOPERATIVE
JOINT VENTURE
SYNDICATE
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owned and usually manage by one person
oldest and simplest form of business ownership
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1. Ease and low cost of formation and dissolution.
2. Retention of all profits
3. Independence and flexibility.
4. Tax advantage and less government regulation.
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1. Unlimited liability
2. Lack of stability
3. Limited access to credit
4. Limited business skills and knowledge.
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It is an association of two or more persons who acts as co-owners of business. Each partners contributes money property or service to their organization.
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1. GENERAL PARTNER- its liability extends up to his personal properties.
2. LIMITED PARTNER- only liable to the extent of his contribution.
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1.Easy to organize
2.Available for more capital and credit.
3.Retention of profits.
4.Better skills and knowledge.
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1.Unlimited liability.
2.Lack of stability.
3.Management disagreement.
4.Idle investment.
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A corporation is a separate legal entity that has been incorporated either directly through legislation or through a registration process established by law. Incorporated entities have legal rights and liabilities that are distinct from their employees and shareholders,[1] and may conduct business as either a profit-seeking business or not-for-profit business.
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1.Limited liability.
2.Easy to raise capital
3.Perpetual life
4.Specialized management.
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1. Difficult To Organize.
2. Strictly Regulated And Supervised By The Law.
3. Some Corporations Are Socially Irresponsible.
4. Formal And Impersonal Employer-employee Relationship
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• The Cooperative Code defines a cooperative as duly registered association of persons, with common bond interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with the universally accepted principles of cooperation which include the following:
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1. Open and voluntary membership
2. Democratic in control
3. Limited interest on capital
4. Division of net surplus
5. Cooperative education
6. Cooperation with other cooperatives
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1. to encourage thrift and savings among members;
2. to generate funds and extend credit to the members for productive and provident purposes;
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3. To encourage among members systematic production and marketing;
4. To provide goods and services and other requirements to the members;
5. To develop expertise and skills among members;
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6. To acquire lands and provide housing benefits for the members;
7. To promote and advance the economic, social and educational status of the members; and
8. To establish, own, lease or operate banks, cooperative wholesale and retail complexes, insurance and agricultural/industrial processing enterprises, and public markets.
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1. Credit Cooperative- Promotes thrift among its members and create funds in order to grant loans for productive and provident purposes.
2. Consumers Cooperative- Procures and distributes commodities to its members and non members
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3. Producers Cooperative- Undertake Joint production in agriculture and industry.
4. Marketing Cooperative- Engages in the supply production inputs to members and markets their products.
5. Service Cooperative- Undertakes medical and dental care, hospitalization, transportation, insurance, housing, labor, electrical light, and power, communication and other services.
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6. Multipurpose Cooperative-Combines two or more of the business activities of the different types of cooperative.
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For membership, there should be a minimum of 15 natural person. They should be a citizen of the Philippines who are residing or working in the intended area of cooperation of the cooperative. However, before organizing a cooperative, the core group (leaders) should study first the following factors.
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Felt need
Volume and business
Availability of qualified officers
Adequacy of the facilities
Opportunities for growth
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The Board of Directors with the assistance of the members with the assistance of the members of Documents Committee shall prepare all the documents necessary for the registration of the cooperative.
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- Four copies of economic survey with a general statement describing the:
a. Structure
b. Purpose
c. Economic Feasibility
d. Area Of Cooperation
e. Size Of Membership
f. Other Pertinent Data
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- Four copies of Articles of Cooperation, together with bond of accountable officers.
- Four copies of by laws
- Registration fee payable to cooperative development authority
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1. Divided the work of the organization into separate parts. Assign these parts to position within the organization. This is called jobdesign . The result is specialization.
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2. Group the various positions to into manageable units. This is departmentalization of the organization.
3. Distribute the responsibility and authority within the organization. The result is centralization of the organization.
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4. Determine the number of subordinates who will report to each manager. This is called span management.
5. Distinguish between those positions with direct authority and those that are support positions. This is called chain of command.
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Jobs must be groups into working units in line with the goals of the organization. The common bases of departmentalization are by:
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1. Function: All jobs the pertain to the same activity are group.
2. Product: All activities related to a particular product or product group are put together.
3. Location: Activities are grouped according to geographic area.
4. Customer: Grouping of activities n accordance to the needs of various customers.
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The extent of distribution of power from management to subordinates whether an organization is centralized or decentralized.
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Delegation -part of a manager’s work is assigned to a subordinate.
Responsibility- is the duty to the job.
Authority- the power to do the job.
Accountability- an obligation to do the job.
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The External Environment Of The Enterprise
Not Risky Decisions Are Delegated To The Lower Level Of Management
Competent decision making skills of lower level-management
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Line of authority- authority passes from highest level to the lowest level
Staff authority- provided support, advice and expertise to line of authority.
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President
-------------Consultant
Vice President
----------Legal Adviser
Marketing Manager Production Manager Finance Manager
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1. Financial- The entrepreneur must be knowledgeable about financial aspects of business decisions. He must be able to know the following: What expenses be incurred, how much capital to be needed, and how much profit to get to sustain the business and the owner.
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2. Marketing: The entrepreneur must be well verse on 4Ps of marketing: product, pricing, place, and promotion. The entrepreneur must have right product to satisfy the needs of consumers. But this is the only the staring point. Such product must also have the right price, the proper promotion, and appropriate place it can be sold.
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3. Managerial Skills. These are vital to the growth and success of the enterprise. The entrepreneur must be able to identify the strengths and weaknesses of his personnel. He should be able to develop fully their managerial skills.
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4. Overall Personal Decision-making Process. The entrepreneur should have a thorough evaluation of what is to be attained by going into business, and what human and financial resources are available and necessary. However it is more important to possess determination and optimism. Going to business is a personal as well as family commitment.
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1. It saves time, cost, and effort for a location.
2. It has its existing customers.
3. Uncertainties regarding physical facilities, inventory requirements and personal needs are reduced. The owner of the existing enterprise can share benefits of his experience in the business and the community.
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4. It may be available at a bargain price or cheap price due to quick sale.
1. Location may no longer be convenient to consumers caused by parking problems, deterioration of neighborhood, change in pedestrian and traffic flows.
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2. Present owner/business may have a bad image in the community. Under such situation, the buyer of the existing enterprise may face difficulties with costumers and suppliers
3. Physical facilities may be outmoded which require expensive repairs or renovations.
4. Inventory may be obsolete and poor quality.
5. The price of the existing business may be too high.
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• Areas to evaluate…
1. Reasons for selling
— Retirement
— Illness
— Employment
— Opportunities somewhere
— Going abroad
— Financial problems
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2. Earning Power
—Profitability of the firm
—Financial statement for the last five year
3. Other factors
—Demands of the firm’s product/services
—Number of competitors
—Future trend of the industry
—Present location of the business
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1. Plan the business
2. Select the appropriate form of business organization.
3. Scout for reasonable credit/financing
4. Choose a good location
5. Secure licenses/permits for the business operation
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6. Set up records for financial, physical and personal resources.
7. Insure the business if necessary
8. Promote the business
9. Manage the business
10. Do your social responsibility