What is an Organizational Plan?
Organizational Planning includes establishing the business’s legal ownership, formal structure, and operational duties. It involves selecting the suitable legal structure, whether sole proprietorship, partnership, or corporation, influencing taxation, liability, and ownership aspects. Furthermore, it describes the formal structure by defining roles, responsibilities, and interactions among members. Additionally, organizational planning outlines the informal organization or culture, including attitudes, behaviors, and communication styles within the business.
Key Takeaways:
- The organizational plan is a mandatory component of a business blueprint, defining ownership structure and operational procedures.
- The organizational plan provides a strategic roadmap for sustainable growth and success, regardless of the business type or legal structure.
- Distinct types of organizational plans include manufacturing, wholesale, retail, and service, each tailored to specific business models.
- Legal structures like Sole Proprietorship, Partnership, Joint Hindu Family, and Corporation offer distinct advantages and challenges.
Table of Content
- Types of Organizational Plans
- 1. Manufacturing Organizational Plan
- 2. Wholesale Organizational Plan
- 3. Retail Organizational Plan
- 4. Service Organizational Plan
- Types of Organization based on Legality
- 1. Sole Proprietorship
- 2. Partnership
- 3. Joint Hindu Family
- 4. Cooperative Society
- 5. Corporation
- Conclusion