How to Make an Organizational Plan | Importance for Business

Organizational Plan: – How to Make an Organizational Plan? This is the question about which a lot of entrepreneurs are so worried about. The human factors in a company success are keys. It is the people who perform the tasks and relate to each other to carry out the activity. For this reason, it is essential to it organizational plan to finalize aspects of the organizational plan, structure and planning of human resources of the company.

How to Make an Organizational Plan

Every company is created from the push of a person or group of people who decide to undertake. There are people more easily than others to create and be able to lead and maintain a project. The features that most help to undertake are the following:

• Motivation: behind every project there isan illusion, motivation or reason that led a person to bet undertake. Therefore, the entrepreneur is usually someone who has the illusion of contributing and creating.
   
• Capacity of leadership: to start an organization from scratch requires leadership to bring a group of people, define the tasks to do each and learn efficiently transmit both the overall objective of the company as the particulars of each.
   
• Perseverance: precipitation can sometimes be a bad counselor.The beginnings are hard and sometimes the results are not what are expected. Equally, you have to have faith in the idea if you really think it is good and do not throw the towel at the first difficulty.
   
• Be transparent: we must be clear before all agents both internal and external to the company to gain the trust of everyone involved more or less directly in the development of the company.For example, for a future investor, provider or supplier it will be fundamental to know the most relevant characteristics of the entrepreneur or the founding team. It is also interesting to detail, if requested, the complementary of the people who form the founding and management team, analyzing the strengths and weaknesses of each of them, both individually and as a team.
   
• Market knowledge: obviously it will not enter into a market which its characteristics, evolution or consumer preferences are unknown.
   
• Have the financial resources or be able to attract whomsoever: starting a business is always a cost . If you do not have enough liquid to cover the initial investment, you have to find the necessary funding, either by looking for partners who also contribute or through more traditional channels such as borrowing from a financial or credit institution.

How to set up an organizational structure?

It is important to specify what and how many tasks and activities are to be carried out in the company, as well as whom or who are the people best prepared to carry them out. They will have to be organized correctly emphasizing the following aspects:

• How many people are needed to cover all activities have to know what the needs of staff and see if they have the financial resources needed to address them.
   
• Concrete activities: define what tasks must be performed in order to estimate the necessary staff and the command structure and responsibilities.
   
• Skills, attitudes and skills necessary for each job: every workplace requires some skill and you need to find the right and the ability to develop their daily work people.
   
• Command relationships and dependence: you have to set a flow chart is included for all the people who make up the organization so that everyone is clear about what their functions are, existing hierarchies and who to contact to solve any problems or propose some innovation or improvement.

The organizational chart will have to be flexible enough in order to be able to adapt to the organizational needs of each moment.

More from Business Study Notes:- How to make a Marketing Plan

How to plan personnel policies?

Personnel policies have to focus on aspects related to both the initial life stage and the development of the company. It is important to specify:

• How to recruit, select and hire people who are not our immediate environment: in many cases, it is hoped next people to start an activity, as it is known how they work or have empathy and trust. Even so, it may be necessary for some type of concrete work to take someone who is not known. Then, it is necessary to be clear which technique of catchment to use, according to the skills that the workplace needs.
   
• If you have to give some kind of additional training : you can choose more trained and experienced or younger people without much experience staff, but in return normally have more enthusiasm and ability to learn. As the case may be, those who have this shortage of experience will need to be trained.
   
• What remuneration policies and contracts are made: as are the needs of the company, one kind or another contract will be used. In another tutorial we specify them. In reference to the remuneration, it is important to take into account the collective agreements and, in the case that commercial ones are necessary, to agree the commission by sale.
   
• How to distribute the benefits among the partners: in the case that the entrepreneur is not just one person, but several, we must make it very clear how profits are shared (if any). It is one of the most difficult points in what refers to the relationship between management and entrepreneurs . Many of the problems of a company that is born arise because it has not made clear what part of the benefit each one takes. In order to reach a fair distribution, we must take into account factors such as:
• Down payment: more input and participation in the capital of a company is understood to have the right to a greater share of the benefits.
• Participation in the day to day business: there are people who may not have available as much capital to invest but instead itself knows the sector of the company very well and for that reason, be more involved in the daily operation of the company.

It is also necessary to anticipate the evolution of its size in the medium term, not only describe the current status of the staff of the company.

Skills and abilities of each worker

This is a task that must be entrusted to the Human Resources Department, which must work together with those responsible for each area. There may be people on the team who have a potential that is being wasted or simply more adept at performing a different tasks they are performing.

Tasks that each person is assuming

You have to tell what tasks each team member is doing. May be who is taking on more tasks that can and that; instead, others can absorb some of this work. The objective is that each member of the team can perform the tasks in the established working time and in the most appropriate way possible.

Responsibilities assumed by each position

Sometimes situations given a responsible person assume overloading and decisions to make. This is negative, because this overload causes, as a result of excess, to make erroneous decisions. So, you have to be able to delegate and allow certain decisions to be made by middle managers.

Innovations in the market

It is necessary to make an assessment of those resources that are available. In parallel, analyze the market and competition. If you see that the company is behind in some aspects, the solution is to study if you have the own resources or capacity of indebtedness to face the necessary investment.

Fluency in communication in the company

The existing knowledge in the company must flow quickly and efficiently. They must be channels for this to happen. In this respect, it is very convenient to use the tools that the new technologies offer.

Objectives of Organizational Plan

The objective of the Organization Plan is twofold. Externally, it is a matter of demonstrating that the project promoter team is qualified to face and carry out the new company. Internally, it is about assigning the different responsibilities to the different people who are going to work in the company.

Many projects have failed because they have not clearly established the responsibilities of each member and have not adopted a professional organization from the outset. This aspect of the company can generate many tensions among the entrepreneurial team. However, it is good to discuss it on paper before because it will always be better to discuss it with the company in progress and with pressing problems that increase the tension.

Partners and legal form

This is where you describe in detail that the partners of the company will be and what contributions they will make. It is also time to make clear which partners are going to work in the company and which will be mere capitalists. Any other pact or agreement between the partners – above all if it is not going to be included in the statutes of the society – should be discussed at this time.

It is also necessary to decide what legal form is going to be given to society. This may vary according to the legislation of the country in which the company is located. In addition the correct choice of the form of the company can have important repercussions in terms of responsibility of the partners and of fiscal charges. It is therefore advisable to consult with an expert who advises the best social form in accordance with the overall objectives of the company and the personal objectives of the partners. Even in the case of a single partner, there may be different ways of setting up the company to be studied.

Finally, it is important to think that it is preferable for a company not to be born due to discrepancies of the future partners before creating it, to stop working due to discrepancies of the partners after creating it.

Delimitation of responsibilities

It must be made clear when starting up a company on the responsibility of a company. This is independent of the number of partners because even in the case of a single entrepreneur, there are still different areas to serve with different objectives to achieve.

It is necessary to detail who is going to be responsible for marketing, production, finance, etc. It is necessary to identify which areas of the company do not have a person with the necessary skills to make it develop properly. You should try to find an outside expert to advise the team in that area or even find a new partner or employ someone with skills in that field.

To carry out this task it is very useful to draw an organizational chart to show the different responsibilities in the company. Here it will be necessary to assign a responsible to each function (although it is possible to assign several responsible ones, this seems the best way, in the background, to assign none).

Personal

It is necessary to indicate what personnel will be needed to operate the company and how it will be achieved. It is necessary to decide which recruitment policies are to be followed, of training, promotion, incentives, etc.

It is important to know the legal aspects of the hiring of workers and the social charges that this implies. At all times, we must seek maximum flexibility to adapt the company to its own growth rate.

External Advisers

If the need for the advice of external experts is detected, this should be reflected in the plan indicating the relationship these experts will have with respect to the company: consultants, board members, etc.