Business management structure | Organizational structure of management

Organizational plan: functional structure

Scope: single-product enterprises; enterprises implementing complex and long-term innovative

projects; medium highly specialized enterprises; research and development organizations; large specialized enterprises.

The main advantages of the functional structure:

- high competence of specialists responsible for the implementation of specific functions;

- freeing line managers from solving many special issues and expanding their capabilities for operational management of production;

- use of consultations of experienced specialists in work, reducing the need for generalists;

- reducing the risk of erroneous decisions;

- elimination of duplication in the performance of management functions.

The disadvantages of the functional structure include:

- difficulties in maintaining constant relationships between different functional services;

- lengthy decision-making procedure;

- lack of mutual understanding and unity of action between functional services; reducing the responsibility of performers for work as a result of the fact that each performer receives instructions from several managers;

The organizational structure of business management is an important factor that determines the success of the organization and the achievement of the company's goals. Thoughtful and competent management focuses on the implementation of the company's strategic plans in life, as well as on the prompt adaptation of these plans to changing conditions.

An example of a business \ enterprise management structure

Proper organization of the business management structure allows employees of all levels to realize their potential and work as efficiently as possible. It is this task that is a priority for any company, and the determination of the directions of the company's development will help to achieve the fulfillment.

Types of business management organizational structures

The structure of business management includes certain elements, orderly related to each other. Thanks to their stable relationship, the organization functions and develops as a whole.

The organizational structure of business management implies building clear relationships between all components of the company: branches, departments and other parts. Any structural unit should have its own measure of responsibility.

Relationship between structural elements of the organization

Different management elements of an enterprise can communicate in two ways:

Vertical ties - interaction between the management and subordinates;
Horizontal ties - communication between equal members of the company.

All relationships within the enterprise, as well as in the hotel or science-intensive business are divided into three types.

Among all sections of the business plan:

Cover Page
Confidentiality Memorandum
Executive Summary
Investment Plan
Marketing plan
Production plan
Organizational plan
Financial plan
Risk analysis

it is the organizational plan that describes the project staff, initiators, their shares in project management, qualifications and remuneration of project managers, as well as staff motivation.

If you are writing a business plan to receive investments for the development of an already operating enterprise, you will need to prove to potential partners that its organizational structure is as effective as possible. If you are just planning to open a company, production or retail outlet, you will need to describe in detail how you are going to ensure the operation of the new business.

All information related to the management of the enterprise should be presented in a section called "Organizational plan". Moreover, it is this point of the business plan that will prepare the ground for writing the financial section of the project.

Business Plan Organizational Plan Structure

Legal form

First of all, in this section it is necessary to justify the choice of the form of activity. Indicate whether you are an individual - individual entrepreneur, or the founder of an organization - LLC or JSC. In the latter case, it is imperative to list the governing bodies and their powers, the composition of the founders and their rights and obligations. After that, it is necessary to describe the organizational structure of the enterprise.

Organizational structure

Organizational structure is the composition, system of relationships and functions between the various departments of the enterprise, each of which is responsible for its own area of activity and is part of the hierarchical system of the organization.

Among all sections of the business plan:

Cover Page
Confidentiality Memorandum
Executive Summary
Investment Plan
Marketing plan
Production plan
Organizational plan
Financial plan
Risk analysis

it is the organizational plan that describes the project staff, initiators, their shares in project management, qualifications and remuneration of project managers, as well as staff motivation.

Business Plan Organizational Plan Structure

Legal form

Organizational structure

There are several types of organizational structures, namely linear, functional, linear-functional, etc. However, whatever the type of structure, your task is to emphasize that it is as efficient as possible, namely:

Allows to establish interaction between all departments and employees;
Creates favorable conditions for the manufacture of high-quality products or services;
Promotes the development of the enterprise , its goods and services.

As a rule, the authors of a business plan depict the organizational system as clearly as possible, using a diagram or organogram. To create the latter, you will need to download a special application, while a diagram can be created in a regular Microsoft Word document. If for some reason you cannot represent the system graphically, you can describe the structure of your enterprise in text.

Among all sections of the business plan:

Cover Page
Confidentiality Memorandum
Executive Summary
Investment Plan
Marketing plan
Production plan
Organizational plan
Financial plan
Risk analysis

it is the organizational plan that describes the project staff, initiators, their shares in project management, qualifications and remuneration of project managers, as well as staff motivation.