Task 4) Examine the different types of organizational plans and explain how the

organizational structure of the selected organization helps achievement of these

plans with examples. (15 marks)

4.1) explain different types organizational Plans and theoretical aspect

4.2) explain selected organization’s structure, and how it’s helps achieving these plans with examples.
 Explain types & elements of organization structure
 Explain selected organization structure how it support formulation, implementation, and evaluation of
plans with Examples.

4.1) explain different types organizational Plans and theoretical aspect

According to the author organization planning is basically define organizational purpose for it’s existing. In
organizational planning process company’s management will define goals and objectives to achieve and also
create task and executing process to achieve those goals. Effective planning requires a thorough knowledge
of the range of variables connected to each decision and collaboration with employees at different levels of
the organization (Ingram, 2021). The result of a planning process is a “plan” which can be viewed as a
blueprint for the organization as it moves towards its future (Kabeyi, 2019). There are four steps in
organizational plans , and those are strategic, business unit, tactical and operational planning. In addition to
above mentioned methods organizations developed contingency plans in case for crises situation. (Nouri,
2021).

Strategic Plans

Strategic plans define the big picture of a company. Normally top management involve in setting strategic
plans. When creating those, management consider whole organization as a one unit. In normally strategic
plans consist with company’s long term goals and objectives. A well defined strategic plan should align with
company’s vision, mission and it’s values.

Business Unit Plans

This model use only larger scale businesses which is spread over multiple business segments. Normally
group of companies like Hayleys uses this method because Hayleys has multiple businesses under their
name. Due to each of those sub level company has their own vision, product line and competitors each of
them using separate strategic business units to continue their works.

Tactical Plans

This describe what sub units of a business do to accomplish organization’s major strategic plan. Further
tactical plans describe how middle level managers and organizational sub units preparing to implement and
execute company’s main strategic plan. A Tactical plan normally consider as a short term goal which has
shorter deadline.

Operational Plans

Operational plans specifically designed to achieve company’s tactical plans. Normally lower level
management construct operational plans with duties and task that relate to goals within tactical strategy. A
good operational plan will ensure smooth continuity of workflow because it is encompass what should need
to be happen in day to day basis, weekly basis and monthly basis.

Contingency Plan

Organizations specially design contingency plans for unforeseen events that have potential to harm their
businesses. Those contingency plans cover range of possible scenarios and proper reactions for a crisis
situation that may has negative impact on the business. Normally a organization prepare contingency plans
for situations like a malfunctioning software, natural disaster or departure of top manager.

4.2) explain selected organization’s structure, and how it’s helps achieving these plans with examples.

 Explain types & elements of organization structure

Due to the complexity of firm’s activities organizations create a hierarchical arrangement what is describe
line of authority, communication process, employee rights, duties and flow of information between
employees. Critical processes like line of authority and communication will be easing up due to this
organizational structure, otherwise employees may be confused without knowing to whom should they
report and how to report (Ahmady, Mehrpour and Nikooravesh, 2016).

There are multiple types of models, management use when it comes to developing a organizational structure.

Organization
Structures
Types

Simple Geographical Customer Team

Structure Structure Structure Structure
Functional Product Dual Virtual
Structure Structure Authority Structure
Matrix
The existence of organizational structure is depend on multiple factors. Those are called as elements of
organizational structure (Sisk, 2021).

Work Specialization Work specialization depend on how efficiently a single task can divide into separate
steps. Before industrial revolution happen organizations used to work without
specialization. But with the economic boom that came after industrial revolution,
organizations saw the benefits of work specialization. Rather than doing work alone
management break the entire work process into pieces and distribute workload among
entire workforce. Following this, effectiveness and efficient among employees
increased. However overspecialization tend increase labour turnover because
employees felt stress and discomfort in work environment.

Departmentalization Departmentalization is a common thing in modern business world. After work

specialization their will be different kinds of jobs will be created in an organization.
Those jobs should be grouped according to their similarities. Modern organizations
grouped jobs considering their job functions, geography of job perform and product
or service offer by job.

Chain of Command Clearly explained line of authority driven from chairman to the lowest level employee
will sort out communication matters that arise in daily basis. A well defined chain of
command clearly explain who reports to whom. Because according to Unity of
Command principle a employee should have only one supervisor to whom they are
directly responsible.

Span of Control A span of control means number of people who report to one manager. Their are two
types pf span of controls, and those are a narrow span of control and wider span of
control. Management consider lot of factors when creating span of control otherwise
managers will fail to direct subordinates in effective and efficient manner.

Centralization & In Centralization, only top level and C rank managers generally have the authority to
Decentralization make corporate level decisions, design plans and set organizational goals. The
Organization does not use any input from middle class managers and lower
management has to carry out and execute those plans without any suggestions.
Centralization structure normally adopt by conservative corporate entities and larger
industries.
In Decentralization organization hopes some level of input from all levels of
management to design goals and objectives.
formalization Formalization describe rules and guidelines adopted by management, and the level of
standardization of jobs within organization. This element determines and outlines
inter -organizational relationship, rules and guidelines which are adopted by
management.
coordination explain the procedure to achieving organizational goals and objectives by integrating
different activities perform by different people.
 Explain selected organization structure, how it support formulation, implementation, and evaluation of
plans with Examples.

Strategies formulated from the planning process should be effectively aligned with the organizational
structure. Organizations should make strategic plans and subsequently analyze how they could adapt to the
organizational structure. It is evident that Hayleys has established a Product Structure, as they have formed
Strategic Business Units that allow specialization in different industries through specific products and
services.

Shareholders

Hayleys PLC
Board Of Directors

Chairman

Group
Management Committee

MD-Plantation MD-Fabrics MD-Alumax MD-Dipped P MD-Singer MD-Aventura

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

Companies Companies Companies Companies Companies Companies

Production Production Production Production Production Production

HRM HRM HRM HRM HRM HRM

Financial Financial Financial Financial Financial Financial

Etc. Etc. Etc. Etc. Etc. Etc.

Formulation and implementation of plans depend on several variables. Those variables can be either internal
or external. Success or failure of these variables depend on fit between structure and strategy (Pearce and
Robinson, 2015 cited in MOINKETT, 2002).

The Hayleys structure helps the company to have a clear focus on specific market segments, meet customer
needs more effectively, respond to market changes swiftly and more flexibly, and also encourages
constructive competition within each department. The strategic plans and independently formed for each
Strategic Business Unit and are separately monitored for effectiveness, which makes it easy for leaders to
plan each division's growth and future. Decision-making is decentralized, which provides autonomy and
freedom of decision-making to divisional heads. Reporting lines are very clear, hence the assigning of
tactical and operational goals can be done effectively.
Ingram, D., 2021. Levels of Business Planning. [Online] Available at:
https://smallbusiness.chron.com/levels-business-planning-786.html
[Accessed 25 September 2021]

Kabeyi, M., 2019. Organizational strategic planning, implementation and evaluation with analysis
of challenges and benefits for profit and nonprofit organizations. International Journal of Applied
Research, [online] 5(6), pp.27-32. Available at:
<https://www.researchgate.net/publication/333641646_Organizational_strategic_planning_implem
entation_and_evaluation_with_analysis_of_challenges_and_benefits_for_profit_and_nonprofit_org
anizations>
[Accessed 25 September 2021].

MOINKETT, S., 2015. ORGANIZATIONAL STRUCTURE AND STRATEGY IMPLEMENTATION

AT GEOTHERMAL DEVELOPMENT COMPANY IN KENYA. [online] Available at:
<http://erepository.uonbi.ac.ke/bitstream/handle/11295/94030/Moinkett_Organizational
%20Structure%20And%20Strategy%20Implementation....pdf?sequence=2>
[Accessed 21 September 2021].

Nouri, C., 2020. Organizational Planning Guide: Plan Types, Steps & Examples. [online]
Pingboard. Available at: <https://pingboard.com/blog/organizational-planning-guide-types-of-plans-
steps-and-examples/> [Accessed 26 September 2021].

Ahmady, G., Mehrpour, M. and Nikooravesh, A., 2016. Organizational Structure. Procedia - Social
and Behavioral Sciences, [online] 230, pp.455-462. Available at:
<https://www.researchgate.net/publication/308736877_Organizational_Structure>
[Accessed 20 September 2021].

Sisk, A., 2018. Elements of Organizational Structure. [online] Bizfluent. Available at:

<https://bizfluent.com/list-6313135-elements-organizational-structure.html>
[Accessed 26 September 2021].