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Module 7A Small Business Management: Adopted From: Noor Malinjasari Binti Ali PM Norsidah Ahmad PM Dr. Farok Zakaria

This document provides information on small business management. It defines small and medium-sized businesses according to employee count and annual sales. Key characteristics of small businesses include being owner-managed with limited resources and being more vulnerable to changes. The main management functions for small businesses are identified as planning, organizing, directing, and controlling. The document also discusses developing an organizational structure, creating an organizational chart, and conducting manpower planning and office planning when starting a small business.

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59 views20 pages

Module 7A Small Business Management: Adopted From: Noor Malinjasari Binti Ali PM Norsidah Ahmad PM Dr. Farok Zakaria

This document provides information on small business management. It defines small and medium-sized businesses according to employee count and annual sales. Key characteristics of small businesses include being owner-managed with limited resources and being more vulnerable to changes. The main management functions for small businesses are identified as planning, organizing, directing, and controlling. The document also discusses developing an organizational structure, creating an organizational chart, and conducting manpower planning and office planning when starting a small business.

Uploaded by

faiz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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MODULE 7A

SMALL BUSINESS
MANAGEMENT
Adopted from:
Noor Malinjasari binti Ali
PM Norsidah ahmad
PM Dr. Farok Zakaria
SMALL BUSINESS MANAGEMENT
Learning Outcome
At the end of the session, students should be able to:
 Differentiate between small and medium-sized business
and its characteristics
 Understand the importance of management functions in
small and medium-sized business
 Prepare the organization plan for their proposed
business/project
DEFINITION OF SMI
Definition of Smal & Medium Sized Business

 SME is defined as a business that employs not more than 150


full time workers and annual sales not exceeding RM25
million.

-SMIDEC-
DEFINITION OF SMALL-SIZED BUSINESS
Small-sized business is defined as a business that employs
not more than 50 full-time workers and annual sales not
exceeding RM10 million.

-SMIDEC-
DEFINITION OF MEDIUM-SIZED
BUSINESS
A medium-sized business is defined as a business that
employs more than 50 but less than 150 full-time
workers and annual sales volume between RM10 to
RM25 million.

-SMIDEC-
CHARACTERISTIC OF A SMALL
BUSINESS
 Owner-manager
 Limited resources

 Agile/Vulnerable to changes

 Labor intensive that capital intensive

 More time spent on operation than on planning


DEFINITION OF A BUSINESS
ORGANIZATION
A business organization comprises of human beings carry
out specific tasks or activities in a coordinated manner
for the purpose of achieving the objectives of the
organization
VISION, MISSION & OBJECTIVE
 Vision – it is a long-term goal of the organization

 Mission – it is a statement of purpose of the organization


came into being

 Objective – it is the short-term goal of the organization


OBJECTIVE – THE SMART CONCEPT
A good objective should be based on the SMART concept:
S – Specific
 M – Measurable
 A – Achievable
 R – Realistic
 T – Time-frame
MANAGEMENT FUNCTIONS
 Planning
 Organizing

 Directing / Leading

 Controlling
ORGANIZATIONAL INPUTS
 Money or capital
 Personnel or labor

 Technology or plant, machinery and equipment

 Raw materials or inventory

 Information
ORGANIZATIONAL STRUCTURE
 Each organization has to be structured according to the
purpose and function of the specific organization
 The structure should explain the following:
 The hierarchy
 Division of task & reponsibility
 Span of control
TYPES OF ORGANIZATIONAL
STRUCTURE
 Functional
 Finance, Marketing, Operation, etc
 Divisional
 By product
 By geographical location
 By customer

 Others
 By shift
 By number of employees
ORGANIZATIONAL CHART
 It is a schematic representation of the organizational
structure
 It shows
 The hierarchy
 Span of control
 Intra-relationship
 Division of jobs and responsibilities
MANPOWER PLANNING
 Perform job analysis
 What task to perform in what order?
 How critical/difficult is the task?
 How many workers needed?

 Develop job description


 Task and responsibilities of each job designation
 Develop job specification
 Minimum qualification needed to effectively perform a job
MANPOWER PLANNING
 Recruitment procedures & remuneration schedule
 Specify the recruitment procedures
 Hiring
 Selection

 Retention

 Identify
sources of personnel
 Determine the remuneration scheme (basic salary, EPF,
SOCSO, allowances, commission, etc)
OFFICE PLANNING
 Premise – Buy or rent?
 Buy – what is the cost?
 Rent – rental per month/deposit

 Cost of renovation
 List of office equipments & furniture
 Quantity and cost per unit
 Identify the source
 Administrative overheads
 Salary of administrative personnel
 Utilities – telephone, electricity & water, rental of equipment

 Other expenditures
 Office stationeries
 Business registration fees
 Misc. expenditures

 Office layout plan


ADMINISTRATIVE BUDGET
 Cost of premise
 Buy/build– cost of premise
 Rent – monthly rentals

 Renovation cost
 Total cost of furniture and equipments

 Monthly administrative overheads

 Other expenditures

 Rental & utilities deposits


CONCLUSION
Entrepreneurship and small business management is inter
related in the context of Malaysian business

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