---
title: "Organizational, operational and human resource plan"
subject: "Entrepreneurship Development"
chapter: 5
key: "semester_7/entrepreneurship_development:organizational-hr-plan"
source: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/organizational-hr-plan
site: BCT Engineering
---

# Organizational, operational and human resource plan

Entrepreneurship Development · Chapter 5: Development of Business Plan and Execution

- Asked in: year not given, 6 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/organizational-hr-plan
- Whole chapter: https://www.bctengineer.com/md/semester_7/entrepreneurship_development/chapter-5

## Question

Explain the contents of the organisational and operational plan and the human resource plan of a new enterprise.

## Short answer

The organisational plan establishes legal form and reporting structure. The operational plan defines location, process, machinery, suppliers, and timeline. The HR plan determines staffing, recruitment, compensation (salary, incentives), training, and compliance.

## Answer

#### 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.

```text
        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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. The organisational plan states:
   A. Legal form and structure of authority
   B. Production steps
   C. Marketing campaigns
   D. Tax forecasts
   Answer: A. It covers ownership form, structure and founders. (Key point: Organisational plan)

2. The form of ownership is chosen by:
   A. Colour of logo
   B. Liability, capital need, tax and control
   C. Number of customers only
   D. Competitor choice
   Answer: B. These factors determine the legal form. (Key point: Ownership form choice)

3. Which belongs to the operational plan?
   A. Salary bonus policy
   B. Founders' shareholding
   C. Location, process steps and machinery
   D. Performance appraisal
   Answer: C. Operational plan explains how product is produced. (Key point: Operational plan)

4. Manpower planning determines:
   A. Selling price
   B. Plant layout
   C. Break-even point
   D. Number and skills of staff needed now and as the firm grows
   Answer: D. It is the first element of the HR plan. (Key point: HR plan)

## Related in Entrepreneurship Development

- [Steps in launching a startup enterprise](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Alaunch-of-startup) — Entrepreneurship Development, chapter 5

## Related in other subjects

- [Org structure definition; line organization pros/cons](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aorg-structure-define-line) — Organization and Management, chapter 5
- [Role of EEF and OPA](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aeef-opa-procurement) — ICT Project Management, chapter 13