Organisational Planning

Organisational Planning

Organisational planning refers to the process of identifying organization’s objectives and formulating and monitoring specific strategies to achieve them. It also entails staffing and resource allocation and is one of the important responsibilities of a management team.

Organizational structures need to be formulated and implemented with a view to achieve organizational goals in an efficient manner. Thus, having a suitable organizational structure in place is a prerequisite for long term success.


Developing goals and objectives

Before shaping the organisational structure, the goals and objectives need to be clearly established.

Good goals should:

  • be statement of ends, not of means
  • reflect what you want, not what you are doing
  • be realistic enough to be implemented
  • be realistic enough to be implemented within organisation's resources
  • be qualitative as well as measurable


Good objectives should specify:

  • a particular intended outcome
  • a timeframe within which outcome will be reached
  • methods by which outcome will be pursued
  • a minimum of acceptability



Useful tips for effective organisational structure

No one structure, set of systems, or method of staffing is appropriate for every organization as organizations operate in different environments with different products, strategies, constraints, and opportunities. However, effective organizational structure requires various factors to be taken into consideration, such as:


  • Relative strengths and weaknesses of various organizational forms

  • Legal advantages and disadvantages of organizational structure options

  • Advantages and drawbacks of departmentalization options

  • Likely growth patterns of the company

  • Reporting relationships that are currently in place

  • Reporting and authority relationships that you hope will be implemented in the future

  • Optimum ratios of supervisors/managers to subordinates

  • Suitable level of autonomy to be granted to employees at various levels of the organization

  • Structures that will produce greatest worker satisfaction

  • Structures that will produce optimum operational efficiency


Once all these factors have been objectively examined and blended into an effective organizational structure, the small business owner will then be in a position to pursue his/her business goals with a far greater likelihood of success.


  • Encyclopedia of Small Business,
  • Organization Planning, National Coalition for Homeless Veterans (NCHV)