Example organizational structure of a business plan management
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.
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.
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.
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.
In order to improve the quality of controllability, to solve strategic and tactical tasks, to create optimal conditions for successful development, enterprises develop an organization structure with information flow schemes (orders, plans, reports) and examples. In the upper part of the diagram are the owners, CEOs and directors, in the middle - the mid-level specialists, in the lower - the performers. The organizational structure is chosen depending on the size of the organization and the field of activity. Ideally, configuration and development work should be under the control of the owners or senior management.
Organizational chart functions and elements
Regardless of the type, the main task of the organizational structure is to establish links between the subsections of the enterprise, to distribute responsibilities and rights between them. The management develops a regulation on the structural unit, consisting of general provisions, definition of the main functions and tasks, responsibilities and rights, the order of relationships.
- divisions of the enterprise with designation of functions in management;
- levels of management in the form of steps;
- vertical and horizontal links that ensure interaction.
The structure of the enterprise depends on the orientation of the company and the number of staff (composition of employees). The company can focus on the use of new opportunities, search for the most efficient resources, development of new markets. A staffing table is drawn up, containing a list of divisions and positions of employees (with the determination of the size of salaries), based on the planned size of production and the volume of the wage fund.
Regardless of the type, the organizational systems of enterprises should be:
- simple (with a minimum number of levels);
- economical (with minimal financial resources);
- flexible (able to easily change when changes in internal and external factors);
- effective (capable of providing maximum results with minimum investment).
In essence, an organizational structure is a division of labor in management. A perfect system is able to effectively influence the company, improve the results of its work.
When developing a scheme, an organization takes into account:
- organizational and legal form;
- type, nomenclature, product range;
- supply and sales markets;
- production technologies;
- volume of information flows;
- resource availability.
Organizational structure and staffing are interdependent. In a small company, the leader is most often the sole leader. With the increase in the number of employees, there is a need for a more complex structure with intermediate levels.
Types of organizational management structures with diagrams and examples
The implementation of plans and programs is achieved by building an organizational structure that allows you to effectively direct the joint activities of personnel through the appropriate distribution of duties, rights and responsibilities. Enterprise management should choose an organizational structure that is consistent with strategic plans and ensures effective interaction with the environment and the achievement of goals.
Characteristics of the organizational structure of the enterprise
An organizational structure is a formal scheme by which work tasks are divided, grouped and coordinated.
The organizational structure has six main elements:
- work task specialization;
- departmentalization;
- command chain;
- manageability rate (measured by the maximum number of subordinates from one manager);
- centralization and decentralization;
- formalization.
Traditional approaches to departmentalization
The specialization of work assignments consists in dividing the entire volume into separate elements and / or stages and securing the employee to perform a narrow range of tasks, operations or procedures. The approach, on the basis of which the individual work orders are then grouped together, is called departmentalization. There are five approaches to forming the structure of the organization:
1. The functional approach is that the grouping of work assignments and specialized specialists into departments is carried out in accordance with the types of activities and qualifications - engineering department, accounting, marketing, production (Fig.).
Fig. 1. Organizational structures of an enterprise: an example of a functional structure
2. With a divisional approach, the basis for the creation of self-sufficient divisions is the similarity of products and programs being implemented, or the influence of the geographical factor (Fig. 2).
Fig. 2. Organizational structures of an enterprise: an example of a divisional structure
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.
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.