Organizational, operational and human resource plan

Organisational plan

It states the legal form and the structure of authority.

• Form of ownership: sole proprietorship, partnership, private limited or public limited company, chosen by liability, capital need, tax and control.
• Structure: roles, reporting lines and decision rights; a small startup usually uses a flat functional structure.
• Founders and advisers: shareholding, roles, board or advisory members.

        Managing Director
       /        |         \
  Operations  Marketing   Finance
   (3 staff)   (2 staff)  (1 staff)

Operational plan

It explains how the product or service will actually be produced and delivered.

• Location and premises, layout and utilities
• Production process or service delivery steps
• Machinery, equipment and technology
• Raw materials, suppliers and inventory control
• Capacity, quality control and safety
• Timeline of start-up activities (Gantt chart)

Human resource plan

1. Manpower planning: number and skills needed in each position now and as the firm grows.
2. Recruitment and selection: job descriptions, sources, interviews.
3. Compensation: salary, bonus, incentives, equity options for key staff.
4. Training and development.
5. Performance appraisal and motivation.
6. Compliance with labour law (contracts, working hours, social security).

Answer: The organisational plan fixes legal form and structure, the operational plan defines location, process and resources, and the HR plan defines staff needs, hiring, pay and training.