Instructor: Ovais VOHRA

ovaisvohra@aydin.edu.tr

• Note 09
• 2021
• MANAGEMENT PLAN
• Concept: Planning, Organizing Influencing, Controlling

• A work plan should explain skills of management and should

show that management would be able to reach its objectives. It
should also mention key people, playing an important role in
an establishment, their peculiarities should be also discussed.
Key people are not only board members or general managers,
it could be a talented designer or an experienced finance
expert.
• Notion of Management Plan
• Management notion can refer to a period or to elements of this
period, in other words to people or teams. Sometimes,
management can be viewed as an information community, thus
how to profit from this information community on activities
like leadership and giving a decision for managers is
accentuated.
• .
• Human resource is the most valuable wealth of an
establishment. That’s why, it is crucial to know about skills of
human resource that an entrepreneur has. Because, an
entrepreneur should search for human resource that he/she
needs. On the other hand, administration of employees and
knowledge about how to behave them is an important issue.
Employees in an establishment should feel like a part of team
• Essential Information for Preparation of Work Plan

Three basic information is needed for preparation of a

management plan judiciary structure, organizational structure
of establishment and definition of positions taking place in
organizational structure. Four main judiciary structures can be
mentioned: Single proprietorship, partnership, cooperative,
charitable institution and corporation. An entrepreneur should
search about juridical, financial and personal situations to
decide on appropriate option.
• organizational structure which provides the most effective
mechanism in order to reach an efficient harmony between
targets, people, skills, work requirement and authority-
responsibility relation and to supply physical and informational
sources so that employees can perform their duties and
responsibilities. Required information to decide on an
organizational structure is as follows:
•
• What are the main positions?
• - How will duties and responsibilities be shared?
• - How will authority and responsibilities be grouped?
• - How will formal authority flow in an organization?
• - Main duty of an establishment is to realise the most effective
organizational design. In order to perform this main duty,
which activities constitute existence reason of an establishment
• Preparation Period for Management Plan

• Eight steps defined below present a logical approach devoted

to information preparing and gathering on management plan:
• Summary of management plan
• This is an optional section. Summary can be prepared for
external presentation of management plan if needed. At the
same time, it is a comfortableness for reader and contains basic
information on basic understanding of plan.
• Establishment Liable to Simple Income Tax
• Business income is positive difference between revenue,
expenses and purchase price of sold goods in an accounting
period. Some simplicities are supplied to these establishments
different from establishments liable to real income tax.
• Sole proprietorships
• As a sole proprietorship, an entrepreneur can inaugurate a collective or a limited
partnership. In these establishments, responsibilities of partners are limitless. That’s why
this type of
• establishment is not recommended for new entrepreneurs. But, an entrepreneur having an
invention or a patent can inaugurate this type of establishment with an investor. He/she
will place his/her invention as a capital, his/her partner will place cash or real capital.

• Collective partnership
• Although structure of collective partnerships resembles to limited partnerships, in
collective partnerships only real people could be partners. There is no need for minimum
capital and responsibilities of partners are limitless.
• Collective partnership
• Although structure of collective partnerships resembles to
limited partnerships, in collective partnerships only real people
could be partners. There is no need for minimum capital and
responsibilities of partners are limitless.
• Stock corporations
• Limited partnership, joint-stock company and limited
partnership (capital divided into portions) are named as stock
corporations. In a limited partnership (capital divided into
portions) one or a couple of partners form a collective
partnership against debt owned, others are like partners of a
joint-stock company.
• Limited partnership is founded by one or more real people or
corporation with a commercial name; capital is determined and
this capital is sum of capital portions. Partners are not
responsible from establishment debts, they should only pay
guaranteed capital and supplementary payments. Limited
partnership can be founded with purpose of economical gain
and subject not forbidden legally.
• entrepreneur should be registered to related trade association or
chamber of commerce with documents listed below:
• - Registration form of tax office
• - 3 photos
• - A copy of identity card
• - Credentials registration form
• - Certificate of proficiency
• Entrepreneur should also be registered to union of chamber of
merchants and craftsmen with listed documents below:
• - A copy of tax certificate
• - A copy of identity card
• - Certificate of residence (with photo)
• - Certificate of proficiency from merchants and craftsmen
where Professional Education Law number 3308 is effective or
a copy of sales agent document
• - A copy of vehicle licence
• - A copy of credentials notification cost
• Limited partnerships are frequently founded in our country in
recent years.
• Limited partnerships have listed properties:
• - Limited partnership is a stock corporation.
• - It is founded with minimum 10.000 TL capital.
• - Personal effort or commercial reputation can not be counted
as capital.
• - Number of partners can not be less than 2, more than 50.
• - Corporations can also be partners like real people.
• Registration to Commerce Credentials
• Registration to Commerce Chamber or Chamber of Industry,
• Registration to Social Security Corporation (SGK)
• Inauguration License
• An inauguration license should be received for new
establishment

• Joint-stock Company

• A joint-stock company is established with a minimum capital of

50.000 TL (initial capital of joint-stock companies not open to
public which have accepted registered capital system can not be
below 100.000 TL).
• -
• Get a Business License

• Either sole proprietorships or stock corporations should get a

business license according to law to start a business.
Authorized administration is defined with regulations. Within
municipality borders, metropolitan municipality is authorized.
Otherwise, special provincial administration is authorized. In
organized customs region, corporation of customs region is
authorized.
• Sanitary Establishment
• Grocer, delicatessen, market, seller of dried nuts and fruits,
coffee store, bakeshop, greengrocer, restaurant, pizzeria,
patisserie, tea garden are considered as sanitary establishments.
They should have some qualifications according to their
classes and properties based on their physical location.
Entrepreneur applies to authorized administration to get his/her
business license.
• Non - Sanitary Establishment
• These establishments risk to harm people around physically,
mentally and socially because of bad smell, smoke, noise and
hazardous wastes. Beside these effects influencing people,
dangerous and hazardous wastes from production activities
cause pollution of air, water, earth and damage animals or
plants.
• These establishments are separated into 3 categories. First class
non-sanitary establishment: Their business license is given by
Metropolitan Municipality. They should be far from cities and
residential area. They should be in customs region or at a location
where health protection strip can be placed.

• Second class non-sanitary establishment: Their business license is

given by District Municipality. They should be far from cities and
residential area. Their location is determined by a commission.

• Third class non-sanitary establishment: They can be close to

residential area but they should be under control.
• Establishment Organization
• Management Philosophy
• Another important subject in management plan is culture
which improves step by step accepted and applied values,
definition of belief and behaviour patterns. How they motivate
and direct employees, how they win trust of clients and
creditors, how they create a positive image of establishment.
• Organizational Structure
• An organization is a group of people, information and financial
sources that should be considered all together to reach definite
targets. Organizational levels are defined with oganizational
design, actual authority and communication relations between
employees and positions.
• Work share, Specialization, Differentiation

• Work share is division of work to each person accelerates their

specialization. Specialized people work with higher efficiency.
In non-specialized fields, they produce more work than real
situation.
• Managers are canalised to work share due to increase in
efficiency of employees by focusing on a narrow field with
specialization or simplification method.
• Division of functions and differentiation process with growth of
establishment is called functionalization. Main reason of
functionalization is to create differentiation in job assignments.
Segmentation
• The question of how job and mission assignment will be made
for employees of different grades in an establishment, is an
important decision problem in organizational structure. This
problem can be eliminated by splitting organization into
departments. According to work share and proficiency level,
definite assignments gathered will constitute works, definite jobs
gathered constitute work groups, definite positions gathered
constitute departments.
• Segmentation according to functions: Jobs and assignments
are gathered upon qualification. For example, jobs about
production constitute production deparment and jobs
about marketing constitute marketing deparment.
• Evaluation of Staff
• Planning and Human Resource Requirement
• Salary and Incentives

• Thanks a lot