Organizational Planning

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Overview

Organizational Planning is the process of identifying an organization's immediate and long-term objectives, and then creating and monitoring specific strategies to execute them. Further, it deals with aspects of staffing and resource allocation. It is an integrated and forward-looking process that predicts ways in which the workforce will change, while providing a plan for facilitating the transition. Workforce planning is a vital part of business management. No company can succeed without a skilled workforce capable of meeting its objectives and goals.

Organizational Planning tries to answer questions regarding optimum organizational structure, the alignment of the organization with business goals, contingency planning, exit strategies and readiness to meet new financial objectives. The answers to these questions will direct management as it goes through the process of putting the right number of people with the right skills, experiences, and competencies in the right jobs and at the right time.

Why is Organizational Planning Critical?

It’s important to facilitate formal and informal organizational planning within organizational design, reorganization, mergers and acquisitions, and succession planning initiatives. By assisting HR and executive departments in developing the optimal structure, shifting resources accordingly, and filling positions when key employees leave or move, Organizational Planning prepares a company to achieve its targets efficiently.

Companies try to seek and maintain a competitive advantage in today’s economy and business climate, so workforce planning is becoming more critical to success, ensuring that they have access to talent and the necessary tools for success. One tool that facilitates workforce planning and organizational design is the org chart.

The Planning Process

Organizational planning is an integral part of the business planning process, involving strategic planning, budget planning, and HR planning, as laid out in the following steps:


  1. Gather accurate workforce data
    Workforce data is necessary to determine turnover rates, anticipate critical workforce segments, plan for future retirements and determine recruitment practices. Managers will need to know the characteristics of their workforce–job titles, responsibilities, skills, experience, demographic data, retirement plans, etc.
  2. Analyze and forecast your talent supply and demand
    Managers must examine areas of business that are growing, along with the skills and competencies needed to reach their goals. This includes the capabilities required in the future, taking into account available options to address shortages of manpower, skills and expertise. Additionally, data on future demographic trends in the personnel department need to be considered. The more detailed the information, the better the planning and preparation will be, which is why planning expertise is vital to formulate strategies to mitigate any gaps.

Companies will need to recruit, retain and reward employees to close the talent gap. Managers will have to identify positions and people that are most critical to their business, predict their turnover and in turn develop a succession plan.

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