Chapter 04
Administrative Plan
This chapter discusses the followings.
4.1 Introduction to an administrative plan
4.2 Administrative positions and functions
4.3 Employee salaries and wages
4.4 Other administrative expenses
4.5 Administrative fixed assets
4.6 Preparing an administrative plan
29
For free distribution.
, 4.1 Introduction to an administrative plan
It is difficult for the owner/s of a business to
run all the business activities by themselves.
Therefore they need various human resources
for the business. The administrative plan is the
document that contains the information and
cost estimates regarding the human resources
that a business needs. It also describes the
functions, responsibilities and authority of
Figure 4.1
each person involved in the business.
The following information is included in an administrative plan
P Administrative positions and functions
P Employee salaries and wages
P Other administrative expenditure
P Administrative fixed assets
Now let us discuss each of these in detail.
4.2 Administrative positions and functions
A business organization consists of various divisions to handle its different activities
related to production, marketing, finance, administration, etc. and there are many
positions that come under each of these divisions. It is the administrative plan that
gives information on these positions in the business organization: the functions
and responsibilities assigned to each position and the qualifications required. An
organizational chart can be used to indicate the divisions of a business organization
based on its functions, as well as the various positions in the organization and their
hierarchy.
Figure 4.2 given below shows the divisions of a business organization based
on its basic functions. It is an example for an organizational chart showing the
administrative positions of an organization.
Managing Director
Production Marketing Finance Manager Human Resources
Manager Manager manager
Figure 4.2
30
For free distribution.
Administrative Plan
This chapter discusses the followings.
4.1 Introduction to an administrative plan
4.2 Administrative positions and functions
4.3 Employee salaries and wages
4.4 Other administrative expenses
4.5 Administrative fixed assets
4.6 Preparing an administrative plan
29
For free distribution.
, 4.1 Introduction to an administrative plan
It is difficult for the owner/s of a business to
run all the business activities by themselves.
Therefore they need various human resources
for the business. The administrative plan is the
document that contains the information and
cost estimates regarding the human resources
that a business needs. It also describes the
functions, responsibilities and authority of
Figure 4.1
each person involved in the business.
The following information is included in an administrative plan
P Administrative positions and functions
P Employee salaries and wages
P Other administrative expenditure
P Administrative fixed assets
Now let us discuss each of these in detail.
4.2 Administrative positions and functions
A business organization consists of various divisions to handle its different activities
related to production, marketing, finance, administration, etc. and there are many
positions that come under each of these divisions. It is the administrative plan that
gives information on these positions in the business organization: the functions
and responsibilities assigned to each position and the qualifications required. An
organizational chart can be used to indicate the divisions of a business organization
based on its functions, as well as the various positions in the organization and their
hierarchy.
Figure 4.2 given below shows the divisions of a business organization based
on its basic functions. It is an example for an organizational chart showing the
administrative positions of an organization.
Managing Director
Production Marketing Finance Manager Human Resources
Manager Manager manager
Figure 4.2
30
For free distribution.
