ABC of “Organisation Structure Design”
Organisations wanting to drive accountability, quick decision making, empowerment to be part of Work culture, then you are at right place as in Synergy we believe that it is necessary to STIR the structures depending on the changing dynamics of business and cater to the growth of business.
It was not unusual to enter the meeting room which has been witness to the topic of Organisation Structure during my stint as HR professional with various Companies and has been similar now when I engage with Managing Directors/CEO of the Company.
Organisation Structure layouts
Always wondered as to why this topic of the Management had its importance. Some discussed it in the light of the how globalization and the economic crisis have forced organizations to rethink their strategies and change they way they operate. Or how the Competitors change in Strategy compels one to relook at their own Company.
Organisation structure is not as simple as it looks .Though it is visible in hierarchy on a piece of paper or PowerPoint slide, Organisation Charts have been the central focus point of discussion amongst the top management in post work hour parties.
Had heard one of the Management guru saying “From what I can gather, much of this has been “on the hoof,” with companies switching their focus from markets to products or competitors, rather than looking at the big picture. This can result in lots of piecemeal change initiatives rather than looking at the overall organizational design.” It has been seen that very few professionals at senior levels or so called designated leaders advocate entire organizational redesign or use it as a way to support their people and business. When organizational strategy changes, structures, roles, and functions should be realigned with the new objectives. Confusion, Lethargy at work, Procrastination and rumors are the byproducts of a misaligned organization. This doesn’t always happen, with the result that responsibilities can be overlooked, staffing can be inappropriate, and people — and even functions — can work against each other.
What actually gives an organization its “shape” and controls how it performs are three things:
The functions it performs.
The location of each function.
The authority of each function within its domain.
The functions an organization performs are the core areas or activities it must engage in to accomplish its strategy (e.g. sales, customer service, marketing, accounting, finance, operations, CEO, admin, HR, legal, PR, R&D, engineering, etc.). The location of each function is where it is placed in the organizational structure and how it interacts with other functions. The authority of a function refers to its ability to make decisions within its domain and to perform its activities without unnecessary interventions.
Stability and Sustainability
A sound organizational structure will make it unarguably clear what each function (and ultimately each person) is accountable for. In addition, the design must both support the current business strategy and allow the organization to adapt to changing market conditions and customer needs over time.
Success in any business is measured by the Smiles we have on our faces. The higher the person climbs , the grimmer and stiffer they become. Most of the developments have limitations or mental blocks because of our attitude. Hence it is said that Improving Communication, sensitivity towards the environment internally and externally and a long term vision are the basic building blocks for sustainable development. Transparent Communication and Role Clarity plays an instrumental role in dissemination of the structure deeper into the Organisation to get acceptance from all levels.
People sometimes in the want of doing things, have seen little more than a traditional hierarchy flattening out, perhaps broadening into a matrix structure in parts of the organization. More often than not, though, the hierarchy remains embedded in the “new” structure, which can cut across its effectiveness and leave people confused and unclear of what next. Worse, organizations or HR department of the Company rarely engage with employees on how to operate in a new structure, which can also undermine effectiveness.
A deeper analysis does catch our attention to the commonly accepted fact is simply inertia. The company gets stuck in an old way of doing things and has trouble breaking free of the past. Legacy is important however the insecurity in the person holding the role does not allow the structure to function with the incumbent fearing loss of control and power.
Business needs Vs HR needs
As the business grows, the promoters or founding members become a bottleneck to growth — they simply can’t do it all at a larger scale. So they make key hires to replace themselves in selected functions .HR finds it difficult to manage the ego’s of the leadership team and the Change Management essential for the business to grow.
However for want of business results and Company’s image leadership teams have realized that it is the requirement of the day not to stick to only Organisational Charts however invest time and money to have a proper Organisational design and Structure to have ROI.
Realisations have dawned amongst the leadership team that functions or department cannot work in silo however have to be interconnected with each other to take the Organisation ahead on the growth path. Those not believing in this thought process are left behind in the race .
With the advent of technology and internet era , the cross functional teams do connect and pitch in their inputs to make a project successful even though they are miles apart .
Companies in India have had promoter families who have nurtured the business over decades and have combination of family and professional management style empowering the professional team the authority and responsibility to take decisions and delegate. This combination of Management of Organisational design has made it possible for us as a country to venture out in various multiple segments of business rather than depending on one product business. We have had local companies acquiring companies in other countries making it possible for international mobility of talent for technology transfer.
Off late, there have been many Companies wanting to set the processes right and in the want of doing so many of our clients tell us that they find it increasingly difficult to operate within complicated structures. On a deeper analysis of the Structures, we at Synergy felt is that organizations either overlook the importance of organizational design or simply don’t know what to do. In our endeavor to help Companies to succeed we believe in thorough audit of the current practices and future plans and strategies of the Companies to have a simplified Organisation design and Structure which is flexible and adaptable.