Organizational planning

From CEOpedia | Management online

Organizational planning - this is the basic plan introduced in the company that affects its proper functioning. It is one of the most important parts of a business plan because it organizes the company and its activities. It consists of the systematic creation and updating of plans, based on knowledge about the future, organizing activities in such a way that this plan is implemented and controlling the results, using feedback[1].

The company's organizational plan should contain information about the company's area of ​​activity - whether its scope is national or international. It should also contain a description of the organizational structure that is or will be in force in the enterprise[2].

Types of Organization Planning

Four main types of organizational organizations[3]:

  • Financial - the goal of financial planning is to generate more income or increase the company's market share. Also, financial planning can anticipate financial problems and help solve them. An effective financial plan must take into account the actual financial picture of the company, taking into account current financial results and realistically achievable results in the future.
  • Strategic - Strategic planning is about converting the company's vision into goals and tasks to achieve. It not only concerns the enterprise itself but also focuses its attention on the surrounding environment. Good knowledge of the industry, competition, and focus on the strengths and weaknesses of our business activity is very important here. It is also necessary to present the real state of the market and economy of a given country.
  • Contingency - This is called Plan B, which is created by many companies. It assumes conditions and situations that go beyond normality. Thanks to it, the organization minimizes the risk and can avoid potential problems that can be catastrophic. It can save your business from collapsing in times of crisis and help it survive. A good contingency plan should establish realistic scenarios that have negative consequences as well as a solution to the assumed problems.
  • Succession - Succession planning focuses on the managerial human factor. This plan should develop a situation when one of the key leaders leaves the organization, regardless of the reason for this departure. Such a plan should provide for some replacement and solutions that will still enable achieving the assumed goals. The succession plan should also include measures that can prevent any loss of leadership.

Examples of Organizational planning

  • Creating a Vision and Mission Statement: A vision and mission statement is the foundation of any successful organizational planning. It outlines the mission and purpose of the organization, and it serves as a guiding force as the organization moves forward.
  • Developing an Organizational Structure: An organizational structure is the arrangement of different positions and tasks within the company. This includes defining the roles and responsibilities of each position, as well as the relationships between them.
  • Creating an Operational Plan: An operational plan is a detailed plan that outlines how the organization will go about achieving its goals. It includes details such as budgeting, resource allocation, performance metrics, and timelines.
  • Developing a Strategic Plan: A strategic plan is the long-term plan for the organization. It outlines the organization’s direction and how it will achieve its goals in the future.
  • Project Planning: Project planning involves breaking down larger tasks into smaller, more manageable chunks. It also involves creating timelines, assigning resources, and tracking progress.
  • Creating Performance Management Systems: Performance management systems are used to measure and evaluate the performance of employees. This includes setting objectives and goals, tracking progress, and providing feedback.
  • Risk Management: Risk management is the process of identifying, assessing, and mitigating risks that could affect the organization. This includes identifying potential risks, assessing their likelihood and impact, and taking steps to reduce the risk.

Advantages of Organizational planning

Organizational planning has several advantages which are as follows:

  • It helps a company to create an effective and efficient structure for the organization. It allows for the establishment of a clear chain of command, setting of goals and objectives, and allocation of resources.
  • It provides a framework for decision making, which can help to ensure that decisions are made on the basis of accurate data and information.
  • It allows for the development of strategies and policies that will help to ensure the organization's long-term success.
  • It enables the company to monitor progress and make necessary adjustments to ensure that objectives are met.
  • It can help to create a culture of accountability, responsibility and ownership within the organization.
  • It can also help to motivate staff and improve morale by giving them a sense of purpose.
  • It encourages innovation and creativity, allowing the organization to stay ahead of the competition.

Limitations of Organizational planning

Organizational planning can be a useful tool for companies to develop their strategies and objectives. However, there are a few limitations to keep in mind when using it, such as:

  • Lack of Flexibility: Organizational planning is a static process that does not allow for changes or adjustments when needed. This can make it difficult for companies to stay agile and adapt to changing conditions.
  • Limited Resources: It is not always possible to allocate the resources needed to achieve the goals set out in the plan. This can lead to delays or even failure in the execution of plans.
  • Time Consuming: Planning can be a time-consuming process, which can take away from other important activities. It is also difficult to forecast accurately and plan for future events.
  • Unforeseen Events: Organizational planning does not take into account unforeseen events or external factors that can affect the outcome of the plan. This can lead to unexpected results or delays in execution.

Other approaches related to Organizational planning

One of the most important aspects of organizational planning is the creation and implementation of a strategic plan. Other approaches related to organizational planning include:

  • Strategic Planning - This is the process of analyzing the current environment, setting goals and objectives, and developing strategies to meet those goals. It is an ongoing process that requires continual assessment and adjustment.
  • Business Planning - This involves the creation of a business plan, which outlines the business’s goals and objectives, the strategies to achieve them, and the resources needed to do so.
  • Financial Planning - This involves the creation of a financial plan, which outlines the financial objectives, the strategies to achieve them, and the resources needed to do so.
  • Human Resources Planning - This involves the creation of a human resources plan, which outlines the human resources objectives, the strategies to achieve them, and the resources needed to do so.

Organizational planning is an important part of a business plan, as it helps to create and implement strategies and objectives that will lead the business to success. Through strategic, business, financial, and human resources planning, organizations can create the plans necessary to achieve their goals.


Organizational planning — recommended articles
Definition of controlling — Strategic control — Strategy deployment — Importance of strategic management — Nature of strategic management — Significance of strategy — Strategic planning — Strategic priorities — Strategy

References

Footnotes

  1. ↑ Bryson J.M., 2018.
  2. ↑ Bryson J.M., 2018.
  3. ↑ Mumford M.D., 2014.

Author: Julianna Lekarczyk

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