7. Organisation Structure

Process for Creating an Organizational Structure

Step 1: Assess Business Needs and Functions

• Functional Requirements:
  • Identify the core functions (e.g., sales, marketing, operations, finance) required to deliver products or services.
  • Align these functions with the organization's strategic goals.
• Resource Allocation:
  • Assess the resources (human, financial, technological) required for each function.
  • Prioritize resources based on business needs and potential impact.

Step 2: Determine Organizational Types

• Organizational types are classified based on how tasks, authority, and responsibilities are structured.
  • A functional structure organizes employees into departments based on specialized roles (e.g., marketing, finance), enhancing efficiency but limiting cross-department collaboration.
  • A divisional structure groups activities by products, services, or regions, focusing on specific markets but often duplicating resources.
  • A matrix structure blends functional and divisional models, promoting flexibility and collaboration but potentially causing confusion due to dual reporting relationships. Each type suits different strategic needs and operational goals.

• Hierarchy and Reporting:
  • Decide on the hierarchy levels (e.g., senior management, middle management, teams).
  • Define clear reporting relationships.

Step 3: Design the Organizational Chart

• Create the Chart Layout: Use software or tools (e.g., Dwaw.io) to map the hierarchy visually.
• Group Functional Units: Organize related functions into departments (e.g., HR, IT, R&D).
• Assign Position Titles: Define position titles that clearly represent the roles and their purpose.

Step 4: Define Roles and Responsibilities

• Role Definition:
  • Write clear job descriptions for each position, detailing responsibilities, deliverables, and expectations.
• Accountability Lines:
  • Establish who is accountable for what to avoid overlapping responsibilities.
• Cross-Functional Collaboration:
  • Highlight key areas where departments need to coordinate and collaborate (e.g., between marketing and sales).

Step 5: Establish Reporting Relationships

• Define Reporting Lines:
  • Specify who reports to whom, ensuring clear communication channels.
• Determine Span of Control:
  • Establish an optimal number of direct reports per supervisor for effective management.
• Consider Matrix Structures:
  • For complex projects or cross-functional teams, incorporate dual reporting lines (functional and project-based).

Step 6: Communicate and Implement

• Develop a Communication Plan:
  • Share the new structure with employees via town halls, emails, or presentations.
  • Explain the rationale and how it supports business goals.
• Training and Development:
  • Provide role-specific training to prepare employees for their responsibilities in the new structure.

Step 7: Monitor and Evaluate

• Track Performance:
  • Set key performance indicators (KPIs) to measure the success of the structure (e.g., team efficiency, employee satisfaction, productivity).
• Establish Feedback Mechanisms:
  • Gather feedback through surveys, one-on-one sessions, or department meetings to assess effectiveness.
• Refine and Improve:
  • Regularly review the structure based on feedback, market changes, or evolving business needs.

Case Study: Organizational Structure for Aangan Architects

Company Background: Aangan Architects is a 40-person company specializing in architectural and interior design projects. The company is organized into several departments to manage various functions from project planning to execution.

Core Business Functions:

1. • Business Development: Responsible for acquiring new projects.
     • Regular BD
     • SMC (Strategic Market Consulting)
     • EOI/RFP (Expressions of Interest/Requests for Proposals)
   • Project Planning: Manages planning and design.
     • Planning and Design Team
     • Drawing & Budgeting Team
     • Architect/Interior Designer
     • Architect/Drawing Incharge
   • Project Execution: Ensures projects are carried out as planned.
     • Onsite Project Execution
     • Execution Inhouse
     • Architect/ID Engineer
   • Research and Development: Focuses on innovation.
   • Marketing: Manages market presence and branding.
   • IT Operations: Ensures IT infrastructure supports all functions.

Administrative and Support Functions:

• Admin/Accounts: Manages financial and administrative tasks.
• HR Department: Handles human resources management.

Design organisation structure of Aangan Architects and how cross team collaboration can be coordinate

        I.          Organization Structure Session (2 Days)

Day 1: Understanding & Rough Drafting

Session Agenda:

1. Introduction (30 minutes):

• • Welcome participants and introduce the session objectives.
  • Present a brief overview of organizational structures (e.g., Hierarchical, Functional, Matrix, Flat, etc.).
  • Discuss key questions to set the context:
    • Can organizations operate without promoters?
    • Historical evolution of organization structures since 1900.

• • Each team presents their analysis of the "Strategic HRM" case study.
  • Presentations should cover:
    • Challenges.
    • Opportunities.
    • Recommendations.
    • Lessons learned.
  • Consultant (Ashfaq Sir) moderates the discussion and addresses key questions:
    • Q1: What hierarchy exists within each department?
    • Q2: What type of organizational chart fits this company?
    • Q3: What hierarchy structure should we adopt?

 3. Team Presentations – Apex Corporation (1.5 hours):

1. • Teams present insights from the "Apex Corporation" case study.
   • Follow the same structure as the earlier presentations.

 4. Post-Lunch Warm-Up (15 minutes):

• • Conduct a quick warm-up activity to re-energize participants.

 5. Summary & Key Insights (30 minutes):

• • Summarize key takeaways from all presentations.
  • Share common themes, recurring challenges, and unique recommendations across teams.

 6. Consultant's Input (45 minutes):

• • Deliver a presentation on:
    • Types of organizational structures and their characteristics.
    • Importance of aligning structure with organizational goals.
    • Examples and case studies of successful structures.
  • Provide reference slides to participants (e.g., Apex Corporation, pages 9 and 15).

 7. Team Activity – Rough Organization Structure (1 hour):

1. • Teams brainstorm and prepare a Rough Organization Structure in 30 minutes.
   • Present their drafts for feedback and initial recommendations.

Day 2: Refinement & Implementation

Session Agenda:

1. Consultant's Presentation (30 minutes):
   • Present a consolidated Rough Organization Structure based on Day 1 insights.
2. Team Revisions (1 hour):
   • Teams review the proposed structure and suggest revisions based on their roles, challenges, and findings.
3. Role-Specific Exercise (1 hour):
   • Participants detail their responsibilities for different scenarios:
     • Self: Tasks during their absence (90 days).
     • Team Members: Reporting tasks during their absence.
     • Manager: Reporting and approval tasks during their absence.
4. Departmental Task Analysis (45 minutes):
   • Reshuffle participants by department.
   • Collect and analyze tasks at:
     • Department level.
     • Interdepartmental level.
     • Intradepartmental level.
5. Delegation Levels Exercise (45 minutes):
   • Participants identify delegation levels for their roles:
     • Delegation to peers or lower levels.
     • Delegation to higher management.
     • Self-delegation.

1. Lunch Break (1 hour).
2. Review & Conclusion (45 minutes):
   • Summarize the final Organization Structure based on team input.
   • Discuss key takeaways on:
     • Importance of structure and delegation.
     • Collaboration and teamwork in organizational efficiency.
   • Collect participant notes for further refinement.
3. Closing Remarks (30 minutes):
   • Conclude the session by highlighting the importance of aligning organizational structure with strategic goals.
   • Share a follow-up plan for implementing the new structure.

Pre-Session Preparation (Client-Side):

1. Team Formation:
   • Form 2-3 teams at the client’s premises.
   • Ensure diversity by including members from various departments for cross-functional perspectives.
   • Gamify this task like first to submit team name will get 500 point, first to send group photo will get 500 points, first to submit PPT will get 1000 points  etc.
2. Case Study Distribution:
   • Share the following case studies 10-12 days before the session:
     • "Apex Corporation"
     • "Strategic HRM"
   • Task each team with preparing a presentation based on their respective case study.
   • Encourage teams to analyze the case study thoroughly and provide insights, recommendations, or solutions.