BUSINESS PLAN FOR “SHEKSIZ ALEM” PROJECT BY “GREEN TAL LLC” COMPANY AND IMPROVEMENT OF ITS MANAGERIAL EFFECTIVENESS THROUGH MOTIVATION OF EMPLOYEES

Abstract

This practicum project aims at providing “Green TAL” LLC company (referred further as Green TAL) with a research on profitability of an expansion project and developing a business plan, as well as at resolving some existing issues with regard to motivation of employees and improving management relationship with employees. “Green TAL LLC” is a unique and a pioneer company in the area of social entrepreneurship in Astana that sets as its main task as to create jobs for disabled and disadvantaged people. The company was established in 2015. It went through certain transformations and currently is looking for an expansion as well as on improvement of its managerial effectiveness. Expansion project represents a plan on construction of a new detached site, at present Green TAL is located in a daytime healthcentre for mentally disabled people. This site will include workshops, mushroom incubator, a dormitory for freshmen, a training centre and a canteen. Workshops will be expanded. This will be achieved through training and employment of people from vulnerable social groups (people with disabilities, graduates from orphanages, single mothers, ex-convicts) with potential employment in total of about 110 people. The business plan that our team has developed quantifies profitability of the new expansion project. To assess project’s profitability, as well its ability to meet its operation expenditures, we use the concept of net present value (NPV). It was found out that NPV of the project is 7.7 mln KZT. However this withstands only in case Green TAL will be able to find sufficient number of orders. Therefore proper marketing strategy should be developed and implemented. To ensure profitability we also recommend for Green TAL to order market research about its products and hire specialist on marketing and sales, technical consultations/audit. Given the NPV and social benefit of the project, we conclude that the project should be undertaken and it will be attractive to the local government and potential investors/donors. After ensuring allocation by local authorities a land for construction of the site, Green TAL should start approaching potential investors/donors and launch negotiation process with them. For the purposes of conducting research on how to improve managerial effectiveness we had developed a questionnaire on motivation of employees and their feelings towards management. Then based on this questionnaire we conducted face-to-face interviews with 24 employees in all existing workshops. As a result of the interview sessions we concluded that most of employees, especially mentally disabled, satisfied with the current situation. Financial benefit is not their main motivator. They look for stability, sense of belonging to a community, self dependence and capability in earning money, sense of being needed, learning new skills, and fair treatment as equals not disabled. Thus in order to enhance employee motivation we recommend conducting on a regular basis team building events and trainings including on basic literacy, and provide face-to-face sessions with psychologists, especially for those with alcohol addiction, and workshops on creativity. In order to ensure good quality of work, to use encouragement and stimulation, including financial, rather than financial punishment.