Effective communicationThis is the act of passing on ideas or giving instructions from one party to another Importance of effective communication - It helps an entrepreneur to maintain a good relationship with his or old customers and to attract new ones - it helps in coordinating business activities - it helps in recruiting and selecting workers for the business through running advertisements - it creates room fro managing credit sales e.g. sending credit status inquiries among others - it creates link between the business with commercial services like banks, insurance, transport companies e.t.c. - it facilitates easy decision making by the entrepreneur since he or she will act on an informed basis - it helps an entrepreneur in making choice for the customers after getting data the likes and dislikes of the customers - a good communication system enables the employees to report to the entrepreneur about any break down of machinery or any other shortages Features of effective communication - It should be complete - It should be clear - It should be concise i.e. it should not be too wordy - Courteous in other words the sender should avoid deceiving - The data should be as correct as possible - The sender should have the receivers environment in mind when sending the information - The information should be specific to the point and not vague or too general Barriers to effective communication include the following This is any thing that can stop the receiver from getting the message the way it was sent - When the receiver is not ready to listen to the message - If the message is incomplete - When the environment is not appropriate e.g. a noisy environment - When there are too many steps the receiver has to go through to access the information - If the message is not attractive or not packaged in an appealing way - When the message is set poorly or too ambiguous - If the channels of communication are not appropriate - When the language used is not understood - misuse of body language - when words mean different things to different people - when individuals interpret anothers message as threatening Forms of written communication Business letters Notices Memos Minutes

1

MemosThis at the same time means a thing to be remembered this is a form of communication where instructions and inquires with in an organization are transmitted Its components include Headline of the memo From : showing where it is coming from To : to whom the information is addressed to Date: when it was written Reference Body: the content of the memo

NoticesThis is a written information brief in nature and are placed in prominent places e.g. on boards where every one can easily see them from. Example one memo PRINCESS DIANA HIGH SCHOOL P.O.BOX 473 KAMPALA, UGANDA MEMO TO: class teacher senior five FROM: school bursar DATE: 24/03/2011 SUBJECT MATTER: school fees defaulters You should not allow any one in class minus a clearance from the school bursar for the whole of this week Thank you Ssewampuma Peter School bursar Example two

NoticeNotice

Princess Diana high school Munyonyo P.O.Box 2325 Kampala Uganda 24/03/2o11 TO: all heads of departments There will be a meeting on 25/03/2011 in the school staffroom from 10:00am please attend in person Mayanja Paul Head teacher

MinutesThese are used to show proceeding in the meeting. They short points written by the secretary during the meeting proceeding They are written in the following ways2

-

Name of the organization Heading People present Members absent with apologies Members absent with out apologies Opening prayer Review of the last meeting Response to the minutes of the last meeting Communication from the chair person about the subject of the current meeting Response to the communication A.O.B [and other businesses Date and venue of the next meeting Signature (chair person and secretary)

ReportsThis is a written communication written by some one who has studied and collected relevant data about something and he or she gives it to some one who has asked for it for a given purpose It includes the following The page (name of the organization, name and title written, subject matter) Table of contents Terms of reference Procedure (how the task was accomplished) Conclusion (summary) Recommendations Signature of the writer and the date

3

REVIEW QUESTIONS QN.1 You have been appointed by Princess Dinah High school as the school secretary. The head master is planning to conduct a staff meeting with in two weeks time. Matters to discuss about are the performance of the students, the welfare of the students and the teachers salaries. In the process you are supposed to convey the message to the concern people [a] As a secretary prepare a memo to the head of the welfare informing him about the meeting due to take place on Friday 26th 2011 [b] Develop a short notice informing the teaching staff about the meeting [c] Out line the barriers of effective communication [d] Explain the qualities of effective communication Qn.2 You have been recruited as a human resource manager of BIDCO Uganda limited and you are charged with the responsibility of filling up the vacant position by the appointing authority [a] write a memo to the production manager requesting him to attend the interviewing [b] Write a letter of termination to the accountant for neglect of his work [c] Design an application form to be used in the recruitment exercise Qn.3 You own an old secondary school that has frequently had problems due to poor management. You have decided to sell it off and use the money to establish a new one [a] Draft rules and regulations to be followed by the students in the new school [b] Write a warning letter to an employee whose performance is not to the set standards [c] Write an appointment letter to the newly recruited school deputy head teacher Qn.4 You are operating a coffee hulling factory. The contracts of your receptionist, general manager and transporting officer have expired through internal sourcing you get suitable replacements for the transport officer and receptionist. You are planning to communicate the changes to your employees and recruit a new general manager [a] Write a circular inviting heads of departments for an urgent meeting to discuss the matter [b] Design an appointment letter for the new transport officer

Purchasing procedures (2)This involves a number of documents a seen and explained below An inquiry This is a document sent to the seller seeking information about the presence of a given commodity

4

AN INQUIRY TO BE SENT TO MAGANJO GRAIN MILLERSPRINCESS DIANA HIGH SCHOOL MUNYONYO P.O.Box 2326 Kampala Uganda Tel: 0772242624 th Date 25 /03/2011 No: 03 MAGANJO GRAIN MILLERS UGANDA LIMITED P.O.BOX 2345 KAMPALA RE: SUPPLY OF FLOUR please quote for us your price and terms of payment and deliver the following QUANTITY 1 Tone 1 tone Yours faithfully Ssewampuma peter purchasing manger DESCRIPTION first class flour Second class flour

A quotation This is a reply to an inquiry that is sent by the seller to the buyer. Other replies to an inquiry may include the catalogue and the price list. A catalogue carries more information compared to a price list which is just a simple list of items sold including the prices a quotation to be sent to princess Diana high schoolMAGANJO GRAIN MILLERS UGANDA LIMITED P.O.BOX 2345 KAMPALA TO PRINCESS DIANA HIGH SCHOOL MUNYONYO P.O.Box 2326 Kampala Uganda Tel: 0772242624 Date: 23/03/2011 No: 26 RE: QUOTATION Dear sir/madam th In response to your inquiry dated 25 /03/2011, we have the pleasure to quote for you the following quantity description Unit price Amount 1 tone Maize flour no. 0ne 1000 1,000,000 1 tone Maize flour second grade 800 800,000 total 1,800,000 The quoted price includes VAT Delivery: 30 days from the date of receipt of your order Discount: 3%discount if paid in the agreed time Looking forward for receiving your order Yours faithfully Mubiru Paul Sales manager

5

An order This is a request to obtain goods at stated prices and terms. It written by the buyer to the seller Delivery noteThis is a document sent along with then goods and shows the goods that have been sent and the buyer uses it to cross check the goods on arrival an example of a delivery note appears as seen below A PURCHASING ORDER TO MAGANJO GRAIN MILLERSPRINCESS DIANA HIGH SCHOOL MUNYONYO P.O.Box 2326 Kampala Uganda Tel: 0772242624 th Date 25 /03/2011 No: 03 TO: MAGANJO GRAIN MILLERS UGANDA LIMITED P.O.BOX 2345 KAMPALA RE: PURCHASE ORDER please supply the following items Description Unit price amount Maize flour grade one 1000 2,000,000 Maize flour grade two 800 800,000 total 2,800,000 Enclosed is our cheque no: 232426011 for shillings 2,000,000 being 80% deposit payment Delivery: the order is valid for three weeks Yours faithfully Ssewampuma peter Purchasing manger quantity 2 tones 1 tone

A DELIVERY NOTE TO PRINCESS DIANA HIGH SCHOOL

6

MAGANJO GRAIN MILLERS UGANDA LIMITED P.O.BOX 2345 KAMPALA TO PRINCESS DIANA HIGH SCHOOL MUNYONYO P.O.Box 2326 Kampala Uganda Tel: 0772242624 Delivery note Please receive the following quantity Item 2 tones Maize flour grade one 1 tone Maize flour grade two The above goods have been received in good order Received by . Delivered by.

An invoice This is an official accounting document sent by the supplier setting out details of the goods supplied, description unit price, value, trade discount and the terms of payment it serves the same purpose a bill. At times it is an evidence of a credit transaction An illustration of an invoice from maganjo grain millers MAGANJO GRAIN MILLERS UGANDA LIMITED P.O.BOX 2345 KAMPALA

Invoice

date 03/25/11

TO:PRINCESS DIANA HIGH SCHOOL MUNYONYO P.O.Box 2326 Kampala Uganda quantity particulars rate amount 2 tones Maize flour grade one 1000 2,000,000 1 tone Maize flour grade two 800 800,000 E.O.E TOTAL 2,800,000 Accounts are due on demand Delivery 2days after receipt of demand Terms of payment 69%deposit, 31% balance not exceeding 23 days from the date of delivery Cash discount 5% 28days Goods received by: .. Signed:

7

A credit status inquiry It is document written to the bank of the prospective buyer who is planning to get goods on credit to inquire about his or her financial position or the credit worthiness It always happens when the buyer and the seller are meeting for the first time. There fore the seller has to check with the bank of the buyer to find out whether the buyer will be able effect payments due A format of a credit status inquiry to crane bankMAGANJO GRAIN MILLERS

UGANDA LIMITED P.O.BOX 2345 KAMPALA Date 25th/03/2011 To the manager Crane bank Kampala road branch P.O.Box 2326 Dear sir

Re: credit status inquiry

We have been approached by princess Diana high school P.O.Box 2326 Kampala for an extension of credit facilities. It plans to place the orders in the range 2,800,000 Uganda shillings the prospective buyers has given your bank as a referee. We shall be grateful if you kindly let us have at your earliest convenience a report on its financial position. All matters from you shall be treated with strict confidence and will not be reveled to princess Dinah high school. A self addressed and stamped envelope is enclosed for your use thank you for your cooperation Yours faithfully .. Mubiru Paul Sales manager Example one You are operating a current account. You have received a loan of Shs 5,000,000 from crane bank to expend your furniture workshop. You have been granted a credit period of 5years at annual interest of 5%. You are required to pay the principal in five equal installments while the annual interest is to depend on the outstanding balance. [a] design (i) A withdraw cheque8

(ii) A cheque you will use in your business operations with the bank [b] Design a sample of a cheque deposit slip you will use in the bank while depositing money Solution [a] A with drawl slip for use in crane bank Crane bank Withdrawal slip Branch date Account number Account name Amount in words. Amount in Shs. Customers signature Supervisor.. C.B [b] A sample of a cheque MM Limited will use in its operations with crane bank Crane bank Uganda limited Kampala road branch Date . Pay order Uganda shillings UGX . SMP ENTERPRISE 00324 9854: [c] A cheque deposit slipCHEQUE DEPOSIT SLIP CRANE BANK UGANDA LIMITED Branch ..date Account name. account no: Cheque no branch. Bank . Drawer account no. Drawers name Amount in words. UGSHS AMOUNT signature of the person paying in name of the person paying in . .

Example 29

You are operating a business dealing in the sale and servicing of auto mobile spare parts. You have been contracted by an organization in need of spare. The prospective buyer wants to transact business on a credit basis but you are not a ware of his credit worthiness [a] prepare a status credit inquiry you will use to get information about the new clients financial position [b] Design a quotation you will send to your customer [c] Write a letter of credit to the customer having complained for being over chargedSolution [b] A quotation Mayas spare parts will send to KK organizationMAYAS SPARE PARTS IMPORTERS P.O.BOX 2352 KAMPALA UGANDA PLOT 2011 JINJA ROAD TEL: 03122334455 dealers in second auto mobile spare parts, cars, motor cycles from Japan TO: KK ORGANIZATION P.O.BOX 2325 KAMPALA DEAR SIR / MADAM RE: QUOTATION FOR THE SUPPLY OF SPARE PARTS In response to your inquiry, below are some of the quotes we have put across quantity description Unit price Total price 2 tyres 13 25cm 25000 50,000 2 engines Toyota model 2001 10,000,00 20,000,000 Total 20,050,000 Payments either made in cash or the bank should be addressed to the office with in 15 days with 5 % discount on cash down payment Looking forward to receiving your order Yours faithfully Namayanja Sales manager

[a] a credit status inquiry Mayas spare parts will send to the bank of KK organizationMAYAS SPARE PARTS IMPORTERS P.O.BOX 2352 KAMPALA UGANDA PLOT 2011 JINJA ROAD TEL: 03122334455 dealers in second auto mobile spare parts, cars, motor cycles from Japan date: 23/03/2011 To: the bank manager Crane bank Uganda limited P.O.Box 2367 Kampala Uganda Dear sir /madam

Re: credit status inquiryWe have been approached by KK organization P.O.Box 2325 Kampala for a credit transaction. The organization intends to purchase goods worth Uganda shillings 15,000,000. They have given your bank as referee. Owing to the above information we would please kindly like you to let us know about its (KK organization) financial position and ability to clear such a debt if in any way granted

10

All the above details will be treated with strict confidence and will not be revealed to KK organization A self addressed and a stamped envelope is enclosed for use. Thank you for your cooperation Yours faithfully . Namayanja Sales manager

NB. A credit note is a document written by the seller to the buyer allowing a reduction on the existing invoice Where as a debit note is a document that allows an increase on the existing invoice [c] A letter of credit or accredit note to the customer having complained for being over charged MAYAS SPARE PARTS IMPORTERS P.O.BOX 2352 KAMPALA PLOT 2011 JINJA ROAD TEL: 031223344 credit note no: 03 CREDIT NOTE date: 03/23/2011 TO: KK ORGANIZATION P.O.BOX 2325 KAMPALA We have credited your account as follows description To correct an arithmetical error on invoice no. 23 Erroneous total 5,000,000 Correct total 4,500,000 Amount

500,000 (Shs. Five thousand shillings only)

Total

500,000

Example three You have started a fish processing factory but its working in an environment of stiff business completion. As any other business you are carrying out an intensive campaign to make your products be known to the general public [a] prepare a credit note you will issue to your customer for having returned damaged goods [b] Write a business letter to your supplier complaining about the spoilt fish he supplied you on 25th /04/2011 [c] Design a business card to promote your product Solution [a] Refer to example two part (c) above11

[b]

A business letter to the supplier complaining about the spoilt fish he supplied Peter fishing company on 25th /04/2011

PETER FISHING PROCESSING COMPANY LIMITED P.O.BOX 478 KAMPALA UGANDA TEL: 041896754TO SALES MANAGER KASENYI FISHERIES P.O.BOX 567 KAMPALA DEAR SIR RE: FISH SUPPLIED

24TH/03/2011

I wish to inform that the fish you supplied us as at 25th/04/2011 was spoilt by the time it reached the factory. It should be noted that such incidences have been happening and less has been done to solve the problem. This letter is greatly informing to maintain the quality standards as regards the fish requirements. failure to do so the contract you are having with will be immediately terminated yours faithfully .. Mubiru Purchasing manger [c] A business card Peter fishing company will use to promote its products

PETER FISHING PROCESSING COMPANY LIMITED P.O.BOX 478 KAMPALA UGANDA TEL: 041896754Experts in buying and processing all types and breeds of which meet the international standards. We buy from the local fish men at friendly prices all over the country

Ssewampuma peterManaging director Located on plot 24, Salaama road P.O.Box 478 Kampala Uganda Tel: 23478566646 Fax: 47558647 Email:peter@yahoo.com Example four You are operating a restaurant in your locality12

[a] Design a petty cash voucher you will use to pay for small expenses [b] Design a menu card for your restaurant Solution [a] a sample of a petty cash voucher C and C restaurant will use to pay for small expenses

C AND C RESTAURANT PETTY CASH VOUCHER P.O.BOX 120 KAMPALAP/voucher no: . Date Dr. to... a/c particulars Shs.

TOTAL Amount in words Prepared by ... checked by Authorized by ..received by [b] a sample of a menu for C and C restaurant

C AND C RESTAURANT Kyengera branch P.O.BOX 120 KAMPALAFor quality services

MENU CARDItem Drinks Soda Mineral water Porridge Snacks Chips Chicken Dishes luwombo goat meat served with matooke, rice, cassava, tomatoes, yams etc order with cash Shs 1000 700 500 2000 3000 5000 4000

Example five You have obtained sufficient funds to start up a savings and credit society13

[a] Design a deposit slip for customers use [b] Design a balance of account request form for customers use Solution [a] a deposit slip for customers use A balance of account request form for customers use

[b]

Munyonyo savings and credit societyBalance of account request form Branch date.. Account name. Account number Customers signature .. Managers / verifiers Signature ..

balance of accountthis section has to be completed by the manager Date and time.. a/c type.. a/c name .. Currency book bal. .. Available balance

You are operating a shop in your locality dealing in second hand computers. You customer wants you to sell him the goods on a hire purchase basis. [a] prepare a hire purchase agreement [b] Design a cash sale slip and a proforma invoice to be issued to your customers [c] Prepare a package sheet you will issue to your customers [d] Draft a statement of account to remind your customer the amount due [e] Write a bill of exchange to your customer requesting him to pay your money Solution [a] a hire purchase agreement between princess Diana and peter computer world

Peter computer world Uganda limited P.O.Box 2703 Kampala Tel. 03125262711Importers of all types of second hand computers from Japan and Europe. we also repair and sell spare parts at a relatively cheaper price

HIRE PURCHASE AGREEEMENTWE HAVE SOLD TWENTY COMPQ COMPUTERS FROM JAPAN TO PRINCESS DINAH HIGH SCHOOL MUNYONYO TO BE PAID IN 10 MONTHS WITH IN10 EQUAL INSTALLMENTS Date: 03 /27/2011 Total value of goods: 5,000,000 (five million shillings) Amount of periodical payments: 500,000 monthly Signature of the buyer.. Signature of the seller14

[b]

(i)

Cash sale slip of Peter computer world Uganda limited

Peter computer world Uganda limited P.O.Box 2703 Kampala Tel. 03125262711Importers of all types of second hand computers from Japan and Europe. we also repair and sell spare parts at a relatively cheaper price

Cash saleNo. . Date.. M/S.. QUANTITY PARTICULARS AMOUNT

E &O E TOTAL Goods once sold are never returnable

(ii)

A proforma invoice of Peter computer world Uganda limited

Peter computer world Uganda limited P.O.Box 2703 Kampala Tel. 03125262711Importers of all types of second hand computers from Japan and Europe. We also repair and sell spare parts at a relatively cheaper price

Proforma invoiceNo.. Date.. M/S quantity particulars rate amount15

E&OE

TOTAL SIGNITURE Peter computer world

Accounts are due on demand

[c] A package sheet from Peter computer world Uganda limited to MM

computer training school Peter computer world Uganda limited P.O.Box 2703 Kampala Tel. 03125262711Importers of all types of second hand computers from Japan and Europe. We also repair and sell spare parts at a relatively cheaper price

PACKAGE SHEETTO: MM COMPUTER TRAINING SCHOOL P.O.BOX 1240 KAMPALA UGANDA This package contains the following Monitors Key boards Packed by : Ssewampuma Peter PACKAGE SHEET NO: 27 DATE: 27TH MARCH 2011

checked by: Mubiru

20 screens 20 keyboards LEDGER FOLIO 10/3

[d]

Statement of account

16

Peter computer world Uganda limited P.O.Box 2703 Kampala Tel. 03125262711TO: MM COMPUTER TRAINING SCHOOL P.O.BOX 1240 KAMPALA UGANDA STATEMENT OF ACCOUNT FOR THE MONTH OF MARCH 2011

DATE th 5 th 7 th 10 th 15 th 17 27th

DETAILS Invoice no. 56 Invoice no. 345 Invoice no. 27 Credit note no. 24 Credit note no.25 Credit note no.27 Balance c/f

DEBIT(SHS) 100,000 200,000 400,000

CREDIT

100,000 200,000 200,000 700,000 700,000 500,000 700,000 Amount due 200,000 SIGNITURE..

Terms: 2% months,2 after E&OE

Example six You are operating a stationary on a large scale in your locality. The stationary has a good control system with an experienced store keeper. The business employees both skilled an unskilled labour [a] design (i) a store requisition form (ii) A requisition form for funds from the accountant (iii) Stock ledger card for the store keepers use [b] Draft a payment voucher you will use when paying workers [c] Prepare a goods returned note for the damaged office supplies [d] Write a promissory note to your supplier for the amount due

Solution[a] (i) a store requisition form for carol stationeries limited CAROL STATIONARY LIMITED P.O.BOX 2456 KAMPALASTORES REQUISITION FORM No: .. Date. Description of material dept quantity rate value

Authorized by .. Supplied from BIN NO.. Materials received by . Entered in bin card stores ledger By .

17

(ii)

A funds requisition form for carol stationeries limited

CAROL STATIONARY LIMITED P.O.BOX 2456 KAMPALASection.. Funds are required to cover the following Item Details of expenditure Date

Amount required

Amount approved

Amount in words. Person requisitioning funds. Signature.. Approved total.. Person authorized payment.. Status

Stock ledger card for store keepers use at carol stationeries limited CAROL STATIONARY LIMITED P.O.BOX 2456 KAMPALA STOCK LEDGER CARD Name of item item no.. (iii)Date received Date of issue Balance (units) Issued to Authorized by

Method used in issuing.. [b] Payment voucher to be used when paying worker at carol stationeries limited

18

CAROL STATIONARY LIMITED P.O.BOX 2456 KAMPALA Payment voucher No.. Date M/S particulars amount Cash/cheque no. A/C NO.. Amount in words Prepared by approved by. Authorized byreceived by.. [c] Goods returned note for the damaged goods to carol stationeries limited

CAROL STATIONARY LIMITED P.O.BOX 2456 KAMPALAGoods returned note To Mpanga publishers P.O.Box 678 Kampala details Entrepreneur ship books Markers chalk reason Not required Damaged Wrong color goods returned note no. 89 date: 03/27/2011 quality 10 copies 20 boxes 3 boxes

Please issue us with a credit note

[d]

Promissory note Mpanga publishers 27th march 2011 Two months after this date, we promise to pay Mpanga publishers for his order a sum of one million shillings, value received. Mayanja Paul For carol stationary limited

You have started a mineral water processing plant. You are competing with many other firms in the market. You are willing to sale shares to the public and make your product known to the public [a] design a questionnaire to issued to the customers [b] Design a clients information form to be used in the sell of shares [c] Draft a share certificate to be issued to the share holders [d] Design a tax invoice to be issued to your customers

Solution [a]

a questionnaire to be issued to the customers19

MUNYONYO NATURAL DRINKING WATER P.O.BOX 2703 KAMPALA Customers opinion form1 2 3 4 5 6 7 8 Name. Address How regular do you buy our products.. How do you find them? Are they of good quality YES OR NO.. Explain How do you compare Munyonyo water with other mineral water Comment on the quantity suggest means and ways which may be applied to increase sales of Munyonyo mineral water

[b] a clients information form to be filled by clients of BB mineral water company

CLIENTS INFORMATION FORMForm no. . Surname. Other names Business name (where applicable).. Reg No (attached certificate of reg) Nationality.. I.D NO. . Passport no.. Maiden name (if applicable). Marital status. Occupation. Date of birth TIN NO.. Physical address building. Floor. Road/street.. P.O.Box.. Town.. Tel.. Fax. Contact person Surname. Other names.. Relation ship Address: P.O.Box. town. Tel........................................... Sign .. Date. For official use only Officer in charge. Designated supervisor. Account number. l A share certificate to be issued to the share holders

20

Name of the company. Certificate no This is to certify that Name.. Address.. Is a registered holder number Million xxxxxxxx xxxx

of one

ordinary five

shares zero

Ordinary shares of twenty thousand each fully paid in the above named company is subjected to the memorandum and articles of association there of. date Transfer No. No, of share

For and behalf of (company name) Chair person

Work schedule (3)This is a process of deciding how to commit resources between varieties of possible tasks A schedule is a list of employees who are working on any given day, week, month in a work place Work plan scheduling is the process of ensuring that an organization has sufficient staffing levels at all times For an effective work place scheduling one has to look at a work order form and work schedule form. [a] WORK ORDER FORM This is form where the customers jobs are recorded showing the name of the customer, work to be done, employee to do the work, when to start and finish the job, the cost of the same work. This form is used to keep accurate records of the customers order and allocate work to the employee. It includes the following. Name, address, and phone contact of the customer, date of the work order, the projected starting and finishing of the job Description of the work to be done, name of the worker to do the work Total cost of the work including the taxes. An example of a work order21

MAYAS ENTERPRISE UGANDA LIMITED

TEL:0712242545Order No Date

Work orderJob cost in ugs Shs

Customers Work Employee Starting Ending Order name description to do the time and time and work No. work date date

[b]

WORK SCHEDULE FORM

This is a form that specifies the work to be done, the customers name, when it will begin and end and which employee is responsible for the work It is intended to keep the workers busy on job and get the customers satisfied Importance of scheduling work To make sure that work is done in time To coordinate work in different departments To keep the workers busy while at the place of work It allocates time because many jobs need completion before others For example

LULE HARD WARE WORLD P.O.BOX 125 tel: 07102425267WORK SCHEDULE FORM day Customers Work Employees Start name description No. time End time Work order no.

Mon Tue wed Thurs Friday

An example You have received a grant from an international NGO worth 20 million to enlarge your metal your carpentry work shop22

[a] Prepare a weekly work schedule for your workshop [b] Show how the schedule will help you in the management of your industry.

A WEEKLY WORK SCHEDULE FOR EMPLOYEES KAMPALA CARES NGO KAMPALA CARES UGANDA LIMTED P.O.BOX 5698 KAMPALA TEL: 031456789 WEEKLY WORK SCHEDULEday Mon Employee name Peter Ssewampuma John Sendijja Tue Peter John Ssewampuma Sendijja wed John Ssewampuma Sendijja Employee no 1 2 3 4 1 3 2 4 3 2 4 Description of work Purchasing timber Preparing meals Cutting timber supervising Cutting the timber Assembling the tables Meals and cleaning supervising Purchasing inputs Preparing food supervising Start time 09.00 am 08.00 am 02.00pm 08.00am 11.00am 10.00am 08.00am 08.00am 11.00am 08.00am O8.00am end time 02.00 02.00pm 04.30pm 05.00pm 04.20pm 04.00pm 02.00pm 05.00pm 02.00pm 02.00pm 05.00pm

23

peter Thurs John Ssewampuma Peter Sendijja Fri. Ssewampuma Sendijja Peter john

1 3 2 1 4 2 4 1 3

Furnishing the doors Assembling windows Food and cleaning Cutting the timber Supervising Preparing food Supervising Painting doors Assembling windows

11.00am 08.00am 09.00am 09.00am 11.00am 08.00am 09.00am 11.00am 10.00am

04.00pm 04.00pm 02.00pm 02.00pm 04.00pm 03.00pm 05.00pm 02.00pm 03.00pm

A plant lay out and a site planA plant lay out is a technique of locating machines, process and plant service with in the factory so as to achieve the might quality and quantity of out put at the lowest position cost of manufacturing Types of plant lay out include Fixed position Product lay out

Process lay out

A SAMPLE OF A PLANT LAY OUT FOR MPANGA FACTORY MPANGA FACTORY P.O.BOX 4537 KAMPALA UGANDA PLANT LAY OUT

24

administration Inspection department Parking yard Store

Weighing department

Grading section

Roasting machine

Parking machine

Workers rest room

Generator room

Toilet

Waste disposal

You are operating a rapidly growing restaurant operating in a small, noisy and congested area. You are looking for funds for usage in the construction of a new modern workplace so that you shift to a new location [a] Draw a site plan for the new premises

Mpangas site plan for the new premises MPANGA FACTORY P.O.BOX 4537 KAMPALA UGANDA

25

Park yard

Main gate

Park yard

Reception and ordering room Serving tents Serving rooms/places Disposal unit

Cooking place

Store for food

Toilet

Nb. A plant lay out is more detailed than a site plan A sample of an office lay out Teller one Dinning hall Customer care and work place Customer care desk Managing director operations supervisor exit Teller two Teller three

Entrance

toilets

26

Loan repayment scheduleThis can be referred to as the period between which one has to pay back a loan he or she has contracted from the bank. Its noted that one has to effect the payments with interest. Of course this depends on the terms and condition of the money lender. Among the contents with in the repayment schedule include The period, the principal, interest and the total amount to paid in a given period The repayment schedule has got two methods namely The reducing balance method The fixed method Question one You have received a loan from crane bank worth Ug Shs 80 million to expand youre your school you have been granted credit period of 8yrs at an annual interest of 2% [a] Prepare a loan repayment schedule using the fixed method [b] Prepare a standing order to you bank to pay water bills monthly [c] Draft a cheque deposit slip you will use to deposit money on your account (a) Fixed method

Princess Diana high school Munyonyo Loan repayment schedulePeriod Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 total principal 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 8,000,000 interest 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 1,280,000 Amount to be paid 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 9,280,000

Note With this method the principal payable remains constant through out the repayment schedule. This principal is got by dividing the total amount of the loan with the credit period granted to the borrower as seen below. 8000,000 8 =1,000,000 [8,000,000 is the total loan and 8 is what call the credit period] The interest unlike in the reducing method remains the same through out. It got 2/100 8,000,000 = 160,000shs The total amount to be paid still has to remain constant throughout .its got by adding the principal with the interest payable E.g. 1,000,000 + 160,000 = 1,160,00027

[b]

a sample of bankers order BANKERS ORDER To: crane bank - Jinja road branch Date: On 3rd march and on every first day of each month until cancelled by us in writing, please pay to UMEME Uganda for account of princess Diana High School Munyonyo P.O.Box 2326 Kampala A/C NO 03232425262011 the sum of Shs two hundred thousand (200,000). Debiting my account with all charges Name: Ssewampuma peter Address : P.O.Box 2326 Kampala

Question two You are importing second hand cars from Japan. Due to the stiff completion in the business you are forced to get a loan from one of the prominent banks on the African continent to expand your business. The bank grants you a credit period of five years at an annual interest of 5%. [a] Prepare a loan repayment schedule using the reducing balance method [b] Explain the credit policy that will be implemented by money lender [c] What measures will an entrepreneur use to ensure proper loan management? [d] Draft a cheque deposit slip you will use to deposit money on your account

(B) REDUCING BALANCE METHODSsewampuma car importers Uganda ltd Loan repayment schedulePeriod Year 1 Year 2 Year 3 Year 4 Year 5 Total Principal repayment 1,000,000 1.000.000 1.000.000 1.000.000 1.000.000 5.000.000 Interest payable 250.000 200.000 150.000 100.000 50.000 750.000 Total amount to be paid 1.250.000 1.200.000 1.150.000 1.100.000 1.050.000 5.750.000

Note Under this method the principal payable remains constant throughout The interest amount paid keeps on reducing from time to time. its calculated as seen below28

1st year 5/100 5.000.000=250.000 Being a reducing balance method, after the first year you have to keep on subtracting the principal of 1.000.000 from the total loan in a given period of time as seen below. 2nd year 5.000.000 1.000.000 = 4.000.000 There fore 5/100 4.000.000 = 200.000 3rd year 4.000.000 1.000.000 = 3.000.000 5/100 3.000.000 = 150.000 The total amount to be paid is got by adding the principal payable with the interest as seen below 1st year 1.000.000 + 250.000 = 1.250.000shs 2nd year 1.000.000 +200.000 = 1.200.000shs

Credit policy[b] The credit policy that will be implemented by money lender One should be registered member of the bank or any financial institution One should a share holder with a given organization One should be economically active One should be a resident of the locality One should have savings on his account with in the bank One should be able to pay monthly One should be able to attend monthly meetings One should have an account in that bank

Proper loan management[c] The following are the measures that an entrepreneur uses to ensure proper loan management By using the loan for the intended purpose By providing accurate information when applying for a loan Through proper documentation of the loan principal and interest Through observing the agreed method of the repayment Through proper monitoring and supervision of the enterprise to ensure its profitability Through making regular visits and seeking advice from the lender29

By obtaining a manageable loan size which can easily be repaid Through communicating to the lender the major changes that may take place in the business and the likely effects on the business performance Through obtaining the required knowledge and skills about the using of the loan funds. This may be through training in the financial management

[d]

Draft a cheque deposit slip you will use to deposit money on your accountCrane bank Uganda limited P.O.Box 2425 Kampala Uganda branch date .. Account name . a/c no. .. Cheque no. .. Branch.. Drawers a/c no. Drawers name.. Amount in words UGX. signature of the person paying in name of the person paying in . ..

Revision questionsQn1 You have got funds from a dear friend in form of a loan worth 10 million to expand your poultry project. He grants you a credit period of 5 years at annual interest of 12% He suggests that you pay the principal in 5 equal installments with an annual interest that will depend on the outstanding balance [a] Prepare a loan repayment schedule [b] Draft the measures you will use to ensure proper loan management Qn2 You are operating an account you have received a loan worth 15 million from Barclays bank to expand your dairy farm. You have been granted a credit period of 5years at an annual interest of 15%. You are required to pay the principal in 5 equal installments [a] Prepare a repayment schedule using both methods [b] As an entrepreneur measures will you use to ensure proper loan management Qn3 You have received a loan worth 20million from crane bank to start up bread factory the loan charges are at a fixed interest rate of 5% and payable within 5 monthly equal payments. [a] Prepare loan repayment schedule. (7mks) [b] What measures will an entrepreneur use to ensure proper loan management? [c] Draft a cheque deposit slip you will use to deposit money on your account30

QN4. You have obtained funds to start up a saving and credit society. The first client gets a loan from you worth 2.000.000. You grant him a credit period of 2years at monthly interest of 10%. Being the first client you request him to the principal in 10 equal installments [a] Prepare a credit policy for you project [b] Develop a loan repayment schedule for your client. Qn4. You have received a loan from local SACCO credit saving scheme worth 20 million to expand your tree growing project. The bank grants you a credit period 10 years at an annual interest of 20% .you are requested to pay the principal in 10 equal installments [a] prepare a loan repayment schedule using the reducing balance method [b] Write a letter to the loans officer requesting him for a grace period of 2 more years to clear the loan.

Business plan preparations (4)It is a well prepared document which is intended to serve in a particular period of time At times its referred to as a management tool which focuses on the nature of the business in a logical and organized manner It is always important for the business men to draw up business plan because it acts as driving force towards the success of any business as it helps on plan a head of time. The purpose of a business plan - It helps financiers like banks, insurance companies to decide whether to finance the business. - It consists of an action plan which acts as a time table for the implementation of various business activities - It provides information about the prospective future of about the business - It encourages the entrepreneur to be focused 0and think great about his business - It helps employers to know their expected targets as it clearly shows the responsibilities for each employee - It provides adequate preparation for the business e.g. in terms of production marketing etc - It helps the entrepreneur to define specific goals which serve as a yard stick to measure the progress of the business - It facilitates the monitoring of the business performance based on the set goals and objective as a standard measurement - It is a basis for determining government revenue from the business - It also helps the government to follow the trends of the business activities in a country

Components or elements of a business plan The general description of the business plan financial plan31

Statement of the mission production plan

Action plan organization plan

Marketing plan

The general description of the businessThis basically looks at the type of the business, features that make it different from other businesses, a SWOT analysis, the name, address and location of the business An example You have established a laundry project in your town [a] Give a general description of your business Solution

Below is a general description for my laundry project - The type of business I have started is a laundry project located in Salaama - The laundry project will do a series of activities aimed at maintaining the cleanness of the people in an area. It will deal with washing and ironing of peoples clothes - The business will be located 8km along Kampala Munyonyo road - The main strength of my business will lie in the experience of my two workers who have knowledge about washing and ironing clothes - My opportunity lies in the area that is to say am the only one who owns a laundry project in the area on a large scale - Among the threats, my business is located in an area full of thieves who can steal the clothes while drying

(b) STATEMENT OF THE MISSION, GOALS, AND OBJECTIVES(i) The mission statement This is a brief statement that indicates the purpose of the business. It answers questions like - What business are we in? - Our primary goal is? - Our share holders are? (ii) The goals These are long or medium targets an entrepreneur is intending to achieve in a given period of time for example - To realize a 40% increase in profits in 10 years - Opening up 5 outlets in .four months (iii) Objectives These are specific targets an entrepreneur sets. They are normally developed from goals set by the business32

NB. Objectives help the business man to move into the direction of achieving his or her goals A goal; to realize a 40% increase in profits Therefore under the objectives we have to look at the ways which can drive us to achieve the 40% increase in profits E.g. -To improve on the channels of distribution - To increase the plant productivity by 30% Some thing to note about the goals They must a] specific in nature b] measurable c] realistic d] Achievable d] time frame An example You have established a poultry project in your locality. [a] write out a mission statement [b] Formulate a vision for the poultry project [c] Prepare any two goals and any two objectives in line with the poultry project Solution [a] mission statement - To provide customers with high quality eggs and hens at reasonably cheaper price to meet the customers demands. [b] The vision statement - To be leading provider of poultry products in the region My goals - To realize an increase in profits by 20% in 2 years - To increase sales by 30% per year over two years - To open up two outlets in 4 years My objectives - To employ about 12 workers in 1 year - To cut down on the production cost by 10% - To improve on the sales by 10%in a year

(c) The marketing planThis is an analysis of the possible position and opportunities of the business being planed in the present market situation. It covers areas like Position of the competitors Selection of the distribution channel An analysis of the product and its value An analysis of the various ways of communicating Projected marketing expenses Target market Pricing and sales NB A student is required to prepare a marketing plan and clearly display the above head lines Qn.133

You have obtained a grant of 50 million to start up a vegetable growing project. [a] Prepare up a marketing plan for your project I will use a short channel of distribution when selling my produce because of the stiff competetion in the market I will carry out advertisement on the local radios I will look at the quality and types of vegetables produced by competitors I will set lower prices than those set by my competitors I will look at the nature and size of the market so as to produce vegetables in relationship to the market needs I will incur expenses of radio advertisement, making a sign post, paying employees, water and power bills

(d)-

THE PRODUCTION PLANProduction standards Inventory plans for stock and work in progress and finished goods Quality objectives Purchasing plans or re-order level Estimated inputs

This is an analysis of the projected needs for manufacturing the proposed goods and services. It covers the following areasThe business location Manufacturing process Machines and equipments needed Labour requirements Power and utilities -

-

An example You have set up a concrete brick laying project in your locality Prepare a production plan for the project

A PRODUCTION PLAN FOR WAIRA BRICK LAYING PROJECT WAIRA BRICK LAYING PROJECT34

P.O.BOX 786005 KAMPALA UGANDA TEL: 7786999044\ A PRODUCTION PLAN

[i] Business premises and location The work shop is located at Buddo 9km along Kampala Masaka road. This work shop is just in a highly populated area which has got a high demand for my products. The work shop was constructed on newly purchased land

The building cost include the following item Unit cost Total cost land Bricks (10000) 120 1200.000 Cement (50bags) 25000 1250.000 Iron sheets (40) 12000 480.000 wiring 300.000 Total 3230.000 [ii] Manufacturing process The work shop is producing quality products like bricks and pavers. it make 500 bricks in two weeks and 200 pavers in one week [iii] Choice of machinery Zzimwe construction uses physical man power to make the products It uses hand operated machines which I bought from Kampala because am working at night, I bought a generator to provide light in case of any load shading A summary cost for the machines and equipments quantity item Unit cost 2 Mixing machine 250.000 1 Generator 250.000 other Other machines total

Total cost 500.000 250.000 1.000.000 1.750.000

[iv] Labour requirements My project is employing 1 engineer skilled in brick making and 6 causal workers Position No Wages amount engineer 1 250.000 250.000 Causal workers 6 100.000 600.000 Total 7 350.000 850.000 [v] Raw materials35

The main raw materials are stones, cement, sand all estimated at 4.000.000shs all these are bought from Kampala and that they are obtained on a cash basis A summary of raw materials cost per month Type quantity Unit cost Total cost Cement 100 bags 25.000 2.500.000 Sand 5 trucks 80.000 400.000 stones 4 trucks 100,000 400.000 total 3300,000 [vi] Power and utilities The work shop requires electricity, diesel to run the stand by generator, water. All this charges are estimated at 750.000 per month [vii] Transport The project hires a truck to transport the raw materials like sand, stones and finished goods for those whoare buying in large quantities [viii] Waste disposal The project has waste materials like damaged bricks and pavers during the production process. They are sold at subsidized prices to individuals who want to repair they their roads [ix] Other facilities required Two punching machines to help in filing the documents, stationary, receipts, pens and pencils to help in record keeping [x] Over head expenses The project incurs some other expenses including depreciation of the machines, building, repairs and machine serving

(e)

Financial plan

This covers the financial requirements of the proposed business. It includes projections of income and profit, balance sheet and cash flows It answers questions like - What is the total cost to set up a business? - Financing of the proposed business - Which source of fund should be tapped? - How will the income be used? An example You have started up a business manufacturing black exercise books worth 5 million shillings. [a] Draw up a financial plan

Solution36

A financial plan for Lule stationeries Uganda LULE STATIONERIES UGANDA P.O.BOIX 54678893 KAMPALA TEL: 8856677473 A FINANCIAL PLAN requirements Shs Shs (i) Fixed capital Acquisition of land 400,000 Construction of building 700,000 Purchase of machines 400,000 Vehicles 500,000 2,000,000 (ii) Start up expenses Water installation 200,000 Installation of machines 200,000 Installation of power 300,000 700,000 (iii) working capital Raw materials 500,000 Direct labor 200,000 Administrative expenses 100,000 Transport expenses 200,000 1,000,000 total 3,700,000 (iv) Financing a business Source of funds Amount in Shs Cost implication Own funds 1,000,000 Trade credit 400,000 friends 300,000 Loan from crane bank 1,000,000 500,000 total 3,700,000 500,000 (v) Profitability of the business I will expect a rate of turn over on my investment of about 700,000 shillings in one years period (vi) Break even sale of the business will be 23% NB. The financial plan can be shorten depending on the marks to be awarded

(f)

ORGANISATIONAL PLAN

This a frame work around which people machines, equipments and other physical parts are put together to have a moving organization. It answers questions like Who will work organization? What are their tasks? for the Who will the administrative work? what skills should their possess

37

An example You have started a fruit processing business manufacturing juice from oranges. You are competing with many firms to make your products known to the public. [a] prepare an organizational plan Below is an organizational plan

KAMPALA FRUIT AGENCIES LIMITED P.O.BOX 56788 KAMPALA UGANDA TEL: 25637265378 An organization planPeople to wok in my factory; Kampala fruit agencies is employing 10 causal workers and 10 skilled workers Tasks for workers Casual workers are taking parting in activities like collecting fruits from growers, preparing them for processing, help packing the juice loading and off loading, preparing meals among others. Skilled workers; include the human resource manager who is recruiting workers, an accountant keeping records, two engineers maintaining the machines, a receptionists and two heads of department Workers qualification The casual workers are having a minimum education qualification of A level certificate. The human resource manager is having a bachelors degree in human resource management. The accountant is having a degree in accounting, a receptionist has a diploma in secretarial studies and the general manager is having a degree in social worker and public administration. Fringe benefits to given to my employees; Both qualified and causal workers are given both housing and medical allowances. The total amount available for use is 14,000,000. The business has been operating with 6,000,000 and later a loan from 8,000,000 was received Remuneration/ salaries and wages position No Salary amount supervisor 1 200,000 200,000 General manager 1 400,000 400,000 Head of department 2 250,000 500,000 accountant 1 300,000 300,000 engineer 2 350,000 700,000 receptionist 1 200,000 200,000 Casual workers 10 120,000 1,200,000 total 18 1,920,000 4,500,000

38

An organizational chartMany learners find it so hard to define a difference between an organizational plan and an organizational chart. But the following should be noted. An organizational plan is a frame work around which people machines, equipments and other physical parts are put together to have a moving organization. Whereas an organizational chart is a diagram that different departments and personnel in these departments Or this is a diagram that shows the way in which management is linked together and shows how authority is transmitted. It can be presented in form of an organizational structure It helps to illustrate the following Shows the overall top person Formal relationships between different departments The number of subordinates The identity of the manager where each worker is answerable Formal channels of communication An example You are a general manager of a large company [a] Explain what ways you would do in carrying out a job analysis [b] Draw up an organizational chart for you company [c] Explain the advantages of an organizational chart to the project you are heading Solution [a] BIDCO Uganda limited would do the following when carrying out a job analysis - By finding out the purpose of the job - By knowing the skills and experience needed - By knowing the knowledge required [b] Below is an organizational chart for BIDCO Uganda limited

39

BIDCO UGANDA LIMITED P.O.BOX 56478 KAMPALA, UGANDA TEL: 031546783 AN ORGANIZATION PLAN Board of directors

General manager

Production department

Marketing department

Finance department

Research department

Welfare department

[c]

The advantages of an organizational chart to BIDCO Uganda limited It shows how every body is linked together in an organization It enables every individual to see their own position in the organization It will help me inform my employees to see from whom to take orders It shows in the link and relationship between different departments with in an organization Allocating every one in a different department avails a sense of belonging to the employees in an organization. It helps an entrepreneur coordinate different departments in an enterprise It helps to determine the personnel requirements It ensures proper organizational structure which improves efficiency It improves on the flow of information and communication in an enterprise It avoids duplication and clashes of roles and responsibilities

(g) An action plan40

This is a plan put forward by the entrepreneur in form of a time table to guide him on how he will go about implementing the ideas of the business plan Or Its a management tool which deals with carrying out the sequenced steps towards achieving a business in an attempt to get things done.

Functions of an action plan It helps to obtain information about the progress of the business. It is a time table estimated for implementing a business plan It helps to allocate sources of information and resources needed It helps the business to remain focused during the implantation of its programs. It helps to identify business barriers Steps taken when preparing a business plan Selecting the business Conducting market research Collecting relevant data Drafting a proposed business plan An example of an action plan You have obtained a loan to expand your project producing plastic cups [a] Explain some of the importance of an action plan to your project. [b] Prepare an action plan for your project Solution [a] The following are the functions of an action plan to Mukwano enterprises - It helps to obtain information about the progress of the business. - It is a time table estimated for implementing a business plan - It helps to allocate sources of information and resources needed - It helps the business to remain focused during the implantation of its programs. - It helps to identify business barriers Discussion of the draft business Finalizing your business plan by preparing an action plan for implementation

[b]

An action plan for Mukwano enterprises41

MUKWANO ENTERPRISES P.O.BOX 67589 KAMPALA. UGANDA TEL: 0316734563 AN ACTION PLANactivity Jan Preliminary survey of the business (SWOT * analysis Market research and finalization of the business plan Ordering for machines Construction and renting of the factory Installation of machines Recruiting of personnel Application for utilities Production trail Commercial production Necessary training publicity Time frame Feb March April May June July

* * * * *

* * * * * * * *

*

* * *

*

*

*

*

Review questions Qn.1 You have started up a sugar processing factory worth 100,000,000 Uganda shillings [a] Prepare an organizational plan for your project [b] What tools would use to monitor your business operations [c] Identify the business support organizations you will require and the services they provide [d] Identify (i) Products (ii) By products Solution AN ORGANIZATION PLAN KAMPALA SUGAR UGANDA LIMITED KAMPALA SUGAR UGANDA LIMITED P.O.BOX 56477 KAMPALA UGANDA TEL: 7856479823 AN ORGANIZATION PLAN

The company is employing 20 casual laborers, 10 skilled and one supervisor Tasks for my workers; Causal workers will do activities like cutting loading sugar canes, cleaning the factory, preparing meals, packing sugar, providing security among others. The skilled workers are including a human resource manager who is recruiting workers, an accountant keeping the books of records, the general42

manager and three heads of department. The supervisor who is responsible for supervision of all departments Workers qualification; the casual workers are having a minimum education level of o level education certificate. Human resource manager is having a bachelors degree in human resource management. - An accountant is having a bachelor of commerce in accounting from any recognized institution. - An engineer possesses a degree in mechanical engineering. - A receptionist is having secretarial skills - The general manager possess a bachelor in social work and social administration Fringe benefits to be given to the workers; both skilled and unskilled are given medical and housing allowances Remuneration position supervisor General manager Heads of department Human resource manager accountant engineer receptionist Casual workers Total [b]

no 1 1 3 1 1 2 1 20

salary 400,000 300,000 200,000 300,000 200,000 400,000 100,000 100,000

amount 400,000 300,000 600,000 300,000 200,000 800,000 100,000 2,000,000 4,700,000

-

-

Kampala sugar Uganda limited would use the following tools to monitor its business operation KAMPALA SUGAR UGANDA LIMITED P.O.BOX 56477 KAMPALA UGANDA TEL: 7856479823 TOOLS TO MONITOR THE BUSINESS By setting sales targets which my workers will aim at achieving Through cross checking monthly bank statements Through cross checking the cash in and out flows in the business By preparing an operational budget and the workers will perform as the operational budget By keeping records of stock the business will always use departmental reports to compare the performance of the business By using a business plan to monitor the business, it will use work schedule that is to say it will set different time schedules at which workers should complete the assigned tasks By designing a schedule showing all workers activities at different intervals

[c] Kampala sugar Uganda limited would require the following business support organizations and their services43

KAMPALA SUGAR UGANDA LIMITED P.O.BOX 56477 KAMPALA UGANDA TEL: 7856479823 SUPPORT ORGANIZATIONS FOR THE PROJECT - Uganda national farmers association which will help the business to look for cheap sources of supply for raw materials - Uganda national chamber of commerce and industry that will provide the business with information about production techniques and training facilities for my workers - Uganda manufacturers association that will help the business look for market - Financial institutions; these would assist the business with safe custody of my funds and granting credit to my business - Utility service institutions like national water, UMEME among others these will help the business in acquiring water electricity and quick transmission of massages to my customers - Non government organizations; these provide me with credit facilities, marketing services, training and information [d] My sugar processing factory will produce the following products and by products Products - Sugar and sweets Byproducts - Gasses - Molasses - Effluents - Noises - Rubbish Qn.2 You are operating a tomato sauce factory the contract of a general manager, security officer and factory nurse have expired. You are making plans to communicate the development to your employees and recruit a new general manager [a] Design an organization chart you will use when inducting the new general manager

An organization chart T and C GROUP OF COMPANIES will use when inducting a new a new general manager44

T and C GROUP OF COMPANIES P.O.BOX 564378 KAMPALA UGANDA TEL: 67589309 AN INDUCTION PROGRAME Managing director

General manager

Marketing manager

Financial manager

Production manager

Sales manager

accountants

Factory manager

Human resource manager

Security officer

Factory nurse

Qn.3 You are operating maize growing project on a large scale with two other friends and you are to establish a maize milling and processing factory [a] Formulate a mission of statement, goals and objectives for your project [b] Prepare a marketing plan for your project [c] Prepare an organization plan for the new factory [d] Prepare an action plan Solution [i] A MISSION STATEMENT MAYANJA MAIZE GROWERS

MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA45

TEL: 023657489329 A MISSION STATEMENT To provide customers with high quality coffee products that meet their standards [ii] GOALS FOR MAYANJA MAIZE GROWERS MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA TEL: 023657489329 GOALS To open up two more outlets in the next two years To increase profits by 15% to realize an increase in sales by 20% per year OBJECTIVES MAYANJA MAIZE GROWERS MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA TEL: 023657489329 OBJECTIVES To improve on the sales by 20% To recruit about 15 more workers To cut down on the production costs A MARKETING PLAN FOR MAYANJA MAIZE GROWERS MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA TEL: 023657489329 A MARKETING PLAN For the target market, The grain milling factory is targeting residents of Buddo, Wakiso among others for the poultry and piggery projects who need the maize brand and perhaps the schools that need the maize flour products offered include; maize brand, maize flour and maize grains When it comes to the position of the competitors, Mayanja maize growers only has one competitor who lacks a steady supply of the maize products The business sets its prices basing on the costs It has incurred in the production process and probably the demand for the products When it comes to the distribution strategies Mayanja maize growers sells its products directly to the costumers and to the wholesalers who are suited far away from the factory. This is helping the business to out compete other competitor The projected marketing expenses include expenses on radio adverts, water and electricity bills.An organization plan FOR MAYANJA MAIZE GROWERS

[II]

[b]

-

-

[c]

MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA46

TEL: 023657489329 An organization planPeople to wok in my factory; I will employ 10 causal workers and 10 skilled workers Tasks for workers Casual workers will part in activities like clearing the fields for planting, weeding, harvesting and sun drying the maize cobs, prepare them for processing, help packing loading and off loading them, preparing meals among others. Skilled workers; will include the human ,resource manager who will be recruiting workers, an accountant to keep records, two engineers to maintain the machines, two supervisors and two heads of department Workers qualification The casual workers will have a minimum education qualification of A level certificate. The human resource manager will possess a bachelors degree in human resource management. The accountant should have a degree in accounting, the supervisors should possess qualification agricultural skills and the general manager will have a degree food far9ming and degree in social worker and public administration. Fringe benefits to given to my employees; Both qualified and causal workers will be given both housing and medical allowances. The total amount available for use is 14,000,000. The business has been operating with 6,000,000 and later a loan from 8,000,000 was received Remuneration/ salaries and wages position No Salary amount supervisor 2 200,000 400,000 General manager 1 400,000 400,000 Head of department 2 250,000 500,000 accountant 1 300,000 300,000 engineer 2 350,000 700,000 receptionist 1 200,000 200,000 Casual workers 10 120,000 1,200,000 total 18 1,920,000 4,700,000

[d]

Below is an organization chart for MAYANJA MAIZE GROWERS

MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA47

TEL: 023657489329 Owners of the factory

General manager

Planting department

Harvesting and processing department

Production department

Sales department

Accounts department

Qn. 4 You intend to establish a cosmetics shop in one of the suburbs of Kampala [a] use the SWOT analysis to determine the competitive advantage of your business [b] Explain what you would do to become a successful sales person [c] Prepare an action plan Solution [a] my SWOT chart I have the following strengths - High quality products - Lower but profitable prices - Ability of the products to meet the customers needs - Effectiveness in serving the customers - Good location of the business - Good and trained marketing staff - High and effective entrepreneur spirit My weakness - Marketing skills are in effective - Narrow product line - Inability to finance market changes - Not used to customers being new in the area - Poor calculations thus losses My threats - Growing bargaining power of the customers - New businesses being started up - Changes in the buyers tastes - Shifts in the trade policies - Rising sales of substitute goods

48

-

I have more strength than my competitors since they have few goods with in the shop- and lack customer care. There I am more advantaged to operate a cosmetics shop than my competitors An action plan Feb Time frame March April May June July

[c]

activity Jan Preliminary survey of the business * (SWOT analysis Market research and finalization of the business plan Ordering for machines Construction and renting of the factory Installation of machines Recruiting of personnel Application for utilities Production trail Commercial production Necessary training publicity

*

* * * * *

* *

*

*

* * * * * * * *

Qn. 4 - You have started a bakery project in your locality - [a] Give a general description of your project - [b] Prepare a marketing plan for your project Solution [a] The general description of the business - The type of business set up is a bakery project dealing in the making bread, cakes and doughnuts. - The project is located along Salaama road opposite princess Diana High School along Kampala district - The project does a series of activities including baking of bread, cakes, and doughnuts. It is also offering training services to the people around regarding making the products - What makes the business different from others is that it operates on a large scale producing high quality products - The main strength of Ntake two bakeries is lying in the experience of the workers who have knowledge about skills and experience in baking. - Ntake two bakerys opportunity lies in the area that is to say it is the only bakery project in the area on a large scale - Among the threats, Ntake bakery is located in an area full of lower income earners who always buy on an irregular basis [b] A marketing plan for my project is as follows

49

-

-

My target market includes students in schools, the staff of those schools and people around the area Products offered; the main products include bread, cakes and doughnuts. I will pack my products in polythene bags. I will also offer training to people as regards manufacturing of bakery products I will use a short channel of distribution when selling my produce because of the stiff competition in the market I will carry out advertisement on the local radios with objectives of increasing sales, maximizing on the profits and to weaken the strength of my competitors I will look at the quality and types of bread doughnuts and cakes produced by competitors I will set lower prices than those set by my competitors I will look at the nature and size of the market so as to produce bakery products in relationship to the market needs I will incur expenses of radio advertisement, making a sign post, paying employees, water and power bills I will sale both on cash and credit basis to some trust worthy customers in order to capture a large market population My plan to out compete my competitors is to produce on a large scale and sell at lower prices

A budget, an operational budget And a financial plan[A] A budgetA budget is a statement of estimated income and expenditure of a business over a given period of time. This helps to avail and present information about the cost for under taking each activity. This is because that each activity or cost of an item is calculated. An example You have received a grant from an American NGO to enlarge your metal fabricating industry worth 50,000,000.uganda shillings [a] prepare a budget for the project [b] Explain the advantages of a budget to your project Solution [a] A budget for KK metal fabricating business given KK metal fabricating WORK SHOP P.O.BOX 5647893 KAMPALA TEL: 098643782545278 A BUDGET FOR THE WORK SHOP requirements FIXED REQUIREMENTS Enlargement of land Construction of another building Purchase of machines50

amount 5,000,000 7,000,000 10,000,000

amount

[b]

Motor vehicles 5,000,000 Fixture and fittings 1,000,000 Total 28,000,000 WORKING CAPITAL Labour 3,000,000 Raw materials 15,000,000 Administrative expenses 1,000,000 Marketing expenses 1,000,000 Power per month 1,000,000 Cash at hand or liquid cash 1,000,000 TOTAL 22,000,000 GENERAL TOTAL 50,000,000 The following are the advantages of a budget to the business

A tittle. An address, business name and frame are very important It is an important aid in decision making through daily record keeping it gives the managers or the employees authority to control the their own departments A Budget controls the whole business as they control the amount of money allocated to each department A budget helps to supervise daily cash receipts and expenditures A budget helps in cash flow planning by predicting the amount of money allocated to each department A budget helps me an entrepreneur in debt collection from credit customers and also in settling debts A budget helps me the manager to make sure that the business doesnt over spend The setting of budgets can involve all workers, supervisors as well as managers some thing that can lead to greater motivation A budget reveals potential hindrances or problems to the smooth running of the business before they occur It allows an entrepreneur to direct extra funds into important areas of the business Budgets can be used to see how the business is performing A budget can provide an entrepreneur with targets for departments and employees to work towards

-

-

-

-

-

-

-

51

-

It helps in cash flow planning by predicting the amount of cash that will flow in and out

[b] An operational budgetThis is a summary of the income and expense projection of a business. That is to say income and expenditure expectations. It helps one in monitoring the business performance after looking at the income and expenditure planned The following are the steps involved in preparing an operational budget Select the business objectives, goals and activities to be performed estimate the sales to be made Estimate the cost of goods or services you are planning to sell Calculate the gross profit by (sales cost of goods to be sold If profits are taxable, apply the tax rate to the difference between the gross profit and the value of the assets together with the estimated selling and general administration expenses to the tax payableThe following is an example of an operational budget description sales Cost of goods sold books 100,000 x 300 Pencil 20 boxes x 500 Duplicating papers 10 reams x 10,000 Gross profit General and administrative expenses Salaries 200,000 renting 90,0000 advertising 150,000 Miscellaneous expenses 50,000 Fixed assets Buildings 100,000 land 200,000 machinery 50,000 total Net profit

amount 5,000,000 = 3000,000 = 10,000 = 100,000

3,110,000 1,890,000

750,000 1,140,000

52

[c] Financial planExample one you have started up a business manufacturing black exercise books worth 5 million shillings. [a] Draw up a financial plan Solution A financial plan for MAYAS enterprises MAYAS ENTERPRISES P. O. BOX 56487474 KAMPALA TEL: 89895785888 A FINANCIAL PLAN requirements Shs Shs (i) Fixed capital Acquisition of land 400,000 Construction of building 700,000 Purchase of machines 400,000 Vehicles 500,000 2,000,000 (ii) Start up expenses Water installation 200,000 Installation of machines 200,000 Installation of power 300,000 700,000 (iii) working capital Raw materials 500,000 Direct labor 200,000 Administrative expenses 100,000 Transport expenses 200,000 1,000,000 total 3,700,000 (iii) Financing a business Source of funds Amount in Shs Cost implication Own funds 1,000,000 Trade credit 400,000 friends 300,000 Loan from crane bank 1,000,000 500,000 total 3,700,000 500,000 Profitability of the business I will expect a rate of turn over on my investment of about 700,000 shillings in one years period Break even sale of the business will be 23% NB. The financial plan can be shorten depending on the marks to be awarded Some thing to note

A budget is composed of53

Fixed requirements Sales Cost of goods to be sold Gross profit

working capital General expenses Net profit

An operational budget looks at the following

Financial plan Fixed capital Financing of the business, Start up expenses, Profitability of the business, Working capital, Break even sales qn. 2 You have obtained a loan to start up a poultry project [a] design an organizational plan for your project. [5mks] [b] Prepare an action plan for the project [c] Explain the functions of an action plan to your project Qn you are a personnel manager of a large company, explain what you in; Carrying out a job analysis [a] Design a mission of statement, goals and objectives [b] Draw up an organizational chart for the company Qn. 4 You are operating a small scale secondary school; you are employing 15 skilled teachers 6 casual workers and an accountant [a] Prepare a mission of statement, goals and objectives [b] Prepare an organization plan for your small school [c] Design a financial plan for the school Qn5 You are operating an orchard in your village. due to the increased demand for the juice you intend to install a beverage processing plant [a] prepare a vision for your business [b] Prepare a production plan for your project [b] Design a financial plan for the business Qn. 6 Having graduated as a construction engineer you have decided to start up a construction company dealing in building flats [a] Formulate a mission statement, goals and objectives [b] Prepare a budget for the construction of a clients flat given 50 million [C] Out line the merits of a budget to your construction company [d] Design a marketing plan for your project so that it can be known by the public [e] Formulate a general description of the project Qn. 7 You have been appointed as a general a manager in a big factory making soap. The board of directors contracts a loan worth 80 million to expand the factory [a] prepare a budget for the factory [b] Explain the advantages of a budget to your factory [c] Draw up an organization plan for the factory [d] Design production plan for the factory [e] Prepare an organization chart you will use in the factory Qn.8 You are to start up dairy farm project [a] Prepare a production plan 54

[b] Prepare an action plan for the dairy farm project [c] Design a marketing plan for the project [d] Prepare an action plan and state its importance to your business. Qn. 9 You have started a carpentry work shop in your locality estimated at 8 million [a] Prepare a production plan for the work shop [b] Design an organizational plan for your carpentry work shop [c] What tools will use to monitor your project [d] Identify the business support organizations you will require and the services they provide [e] Prepare guiding tool you are to use when implementing the ideas of your business Qn.10 You have received sufficient funds and you are to start a mineral water processing business [a] Formulate a mission statement, goals and objectives [b] Design a vision for your business [c] Prepare an organization plan for the business [d] Prepare an action plan for the business

Designing a job description and a job specification (5)[A] A job descriptionThis out lines the responsibilities and duties to be carried out by some one employed to do a specific kind of work or job

The exact content of a job description varies from business to be business but generally it will include the following. - The title of the job e.g. an accountant - Department of the business e.g. accounting section - Who the job holder is responsible to; that is to say who will be in charge of the employee? - The purpose of the job that is to say the a summary of the job its self - Main duties and responsibilities - It may also contain the following information - Conditions of the employee (salary scale, hours and pension scheme) - Training that will be required - Opportunities for promotion An example of a job description

55

Job title: sales manager Department; marketing department Responsibilities : general manager Main purpose of the job - Responsible for marketing the products Main duties - Allocation of duties to different sales persons - Advising and monitoring them - Checking the sales records - Informing the general manager about the consumers tastes Occasional duties - appointment of new sales agents - training and motivating them - dismissing the un necessary participants

Qn. 1 You have received a grant from one of the American NGO totaling to 5,000,000 Uganda shilling to expand your school. In the process you required to recruit one more teacher [a] Design a job description for the of a teacher to be employed in your school Solution A job description for the post of teacher to work in my school

56

St Angela Primary School Ntinda P.O. Box 2111 Kampala Tel: 0401228899 Job description for teacher Job title: teacher Department: entrepreneurship section Responsible: to the head of department Responsible for: teaching entrepreneurship Main purpose of the job - teaching students job duties and responsibilities - teaching entrepreneurship skills - giving and marking tests - organizing seminars - making weekly reports on the performance of the students - guiding and counseling the learners - impacting business ideas before the learners

Qn. 2 Design a job description for the post of a sales manager in your fruit plant Solution A job description for the post of a sales manager in my fruit processing plant

processing

Ssewampuma fruit processing business P.O. Box 2201 Kampala Uganda Tel: 030335577dealers in producing and exporting all kinds of natural African Job description for the sales manager Job title: sales manager Responsible for; marketingJob duties and responsibilities:

fruits

-

identifying suitable advertising medium for the business products selecting appropriate ways of increasing sales recruitment of more sales persons reporting customers complains in line with quality and quantity ensuring proper distribution of products to the final consumers

57

A job specificationOnce a job description has been drawn up, the qualifications and qualities are very important for the job to be specified. A job specification is a document that out lines the requirements, qualifications, expertise and physical features needed from a person who is applying for the job. This lists the desirable and essential requirements for the job in question It includes the following - The level of education qualification - The amount of experience needed - Special skills, knowledge or particular attitude - personal features such as the type of personality

An example of a job specification for a house keeperJob title: house keeper Department: house keeping Details of the job Responsible for domestic services Qualifications Essential diploma in house keeping Desirable minimum three years of experience Skills - Effective communication skills - Ability to manage Personal characteristics - honesty - friendly - helpful - organized

Qn. 1 You have contracted a loan from diamond trust bank to expand your business [a] Design a job specification for the post of a sales manager in your fruit processing business [b] Design a news paper advert for the post sales manager Solution [a] a job specification for the post of a sales manager in waira fruit processing business

58

Ssewampuma fruit processing business P.O. Box 2201 Kampala Uganda Tel: 030335577 dealers in producing and exporting all kinds of natural African Job specification for a sales manager Job title: sales manager Responsible for; marketing Physical requirements; good health Qualifications - should possess a bachelors degree in commerce diploma in procurement certificate in computer working experience 5 years of working experience Other requirements perfectly male between 28 to 35 years residing with or near Kampala knowledge about different languages is relevant

fruits

Some thing to note Job description outlines the responsibilities and duties to be carried out by the job applicant Where as A job specification out lines the requirements, qualifications and expertise needed from the applicant Qn. 1 Design job descriptions and specifications for the following - An accountant - A sales manager - A hotel manager - A general manager

Job advertisementThis will obviously help the employer to convey or pass on information to the public about the existence a given job. In other wards this job advert will have a combination of the job description and a job specification. Components of a job advert - Duties involved, - Salary scale, - Qualification required, - Where to place the applications NB a job advert must have vacancy announcement head line [b] Newspaper advertisement for the post of a sales manager

59

Ssewampuma fruit processing business P.O. Box 2201 Kampala Uganda Tel: 030335577Vacancy announcement We are dealers in producing and exporting all kinds of natural African fruits. We are therefore looking for a responsible and innovative person ready to work under minimal supervision Job title: sales manager job duties and responsibilities: - identifying suitable advertising medium for the business products - selecting appropriate ways of increasing sales - recruitment of more sales persons - reporting customers complains in line with quality and quantity - ensuring proper distribution of products to the final consumers Qualifications - should possess a bachelors degree in commerce - diploma in procurement - certificate in computer working experience - 5 years of working experience Remuneration: attractive Age: between 27 to 40years of age All qualified and interested Ugandans should submit in their hand written applications plus certified copies of academic documents and any three addresses referees to human resource manager Ssewampuma fruit processing business.

Not later than 27th June 2011

Qn. 3 You have obtained a loan worth 250 shillings to start up a metal fabricating project [a] Design an advert for the post of a manager [b] How will you motivate your employees? [c] Explain some of the leadership styles you are likely to implement as a new manager

APPLICATION FORMS AND CURRICULUM VITAS (CVS)A business will always use the application forms or letters of application and the CVS to see which of the applicants will be invited for an interview and the selection stage. A curriculum vitae is a summary of a persons qualifications and qualities Curriculum vitae should contain the following Names Education and qualification Addresses Working experience Telephone numbers Positions and responsibilities Date of birth Interest and habits Nationality Names and addresses of referees

Interview questionsThe main purpose of interviews is to assess an applicant so as to determine his or her ability to do the job, any other personal abilities that are advantages or disadvantages or the general charter and personality of the applicant. Examples of questions asked in an interview60

- What do you know about the organization? - Why have you applied for the job? - What qualities do you have to offer the company? - What ambitions do you have for the company? - Do have any question to ask? - Tell us about you hobbies and interest? An example of an application form

BIDCO UGANDA LIMITED P.O.BOX 7004 TEL:031232411APPLICATION FORM

Personal details Name of the job applicant Sex Age. Marital status Religion.. Experience possessed................................................................................................ From which Organization Education summary Primary.Secondary Employment back ground Position gross salary Responsibilities. Accomplishment Reason for termination.. Name of the company. Name of the past employer Language used. English luganda. Availability: Permanent.. Temporary. referees name company. Telephone address..

61

Recruitment program (6)Recruitment is the process of generating a pool of qualified applicants for organizational job vacancies The process of recruiting and selecting workers involves the following steps Analyzing and collection of data business Determining the number of workers Establishing the levels of qualification Determining the remuneration and fringe benefits Advertising the post in the newspapers Short listing the most suitable candidates Interviewing the short list candidates Organizing an induction plan

Methods of recruitment include Advertising in the media Head counting Visiting high institutions of learning Visiting labor unions Visiting employment agencies

Factors considered for recruiting workers in an organization Working experience Cost of the employee Age of the employee The sex of the employee, Language spoken, Marital statusHealth status of the employee, Religious affiliation among others

-

Number of workers required Size of the business

Qn. 1 You have been received a loan from diamond trust bank worth 70 million to expand your school that has been operating on in a small area on a small scale

[a]

Prepare a plan for the recruitment of more teachers62

[b] [c] [d]

Draw up a work plan that you will follow when expanding your school Explain the factors you would consider when recruiting workers. Explain the methods you will use when recruiting workers.

Solution [a] a plan for the recruitment of more teachers in st. Angela primary school ST. ANGELA PRIMARY SCHOOL P.O.BOX 78584857 KAMPALA TEL: 0895767838 A PLAN FOR THE RECRUITMENT OF MORE TECHERS step Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 date 2nd/05/11 4th/05/11 6th /05/11 7th/05/11 9th/05/11 15th/05/11 20th/05/11 Activity Collecting and analyzing the school performance to find out the need for recruiting more teachers Determining the number of teachers to recruit Find out the level of qualification and probably the duties for each teacher Determining the fringe benefits to be given to each teacher Advertising the post in newspapers to .known to the public Applications are received and the most suitable are short listed to get ready for the interview Interviews are made and the most suitable are appointed and an induction is made

[b]

A work plan I will follow in the expansion ST. ANGELA PRIMARY SCHOOL P.O.BOX 78584857 KAMPALA TEL: 0895767838 A WORK PLAN

activity

Required in puts may June July

Persons Expected results responsible Estates officer A new site ready for construction

Purchasing 10 more land, workers clearing and63

grading the site Construction of four new class rooms Inauguration of new premises

Cement sand workers furniture

Estates manager owners

Well constructed class rooms operation a large area

[c] st. Angela primary school would consider the following when recruiting workers. ST. ANGELA PRIMARY SCHOOL P.O.BOX 78584857 KAMPALA TEL: 0895767838 The working experience of the applicants. I would consider those with 5 years of experience. I would consider the cost of the employees. I would actually recruit those low costs but very effective The age of the applicants should be considered. I would there fore recruit those between 30 to 40 years young and beautiful ladies to work as my teachers the language spoken by the teachers. That is say I would employ those with more than three languages spoken The marital status would also be considered when recruiting teac