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.

Making Organisation structure, JD, KRA & KPI booklet

1. Pointer Compilation:
   • Analyst collects inputs from client team members where they have written answer of Role-Specific Exercise
     • Self: Tasks during their absence (90 days).
     • Team Members: Reporting tasks during their absence.
     • Manager: Reporting and approval tasks during their absence.
   • Combines all pointers into a single document.
   • Consultant reviews and refines the document, ensuring clarity and alignment with organizational goals.

1. Job Description, KRA and KPI Development:
   • Analyst drafts comprehensive job descriptions based on the Consultant's guidance.
   • Consultant reviews, refines, and adds Key Performance Indicators (KPIs) for each role.
   • Assigns scoring metrics to KPIs for performance evaluation.

1. Organizational Structure Design:
   • Consultant sketches an initial organizational structure on paper.
   • Analyst creates professional diagrams in draw.io, including:
     • Basic Organizational Structure.
     • Structure with Dotted Lines for cross-functional relationships.
     • Structure with Key Result Areas (KRAs).
     • Structure with KPIs and a Matrix.

1. Internal Review and Refinement:
   • Consultant ensures all documents adhere to internal release procedures.
   • Implements required modifications for accuracy and alignment.

Final Draft Workflow

1. Contents:
   • Disclaimer.
   • Organization Structure.
   • Organization Structure with Dotted Lines.
   • Organization Structure with KRAs.
   • Organization Structure with KPIs.
   • Job Descriptions.
   • KRA and KPI Table

Presentation:

• Create a professional title page using Canva.
• Print the booklet on high-quality paper for durability.

·        Share a PDF version of the finalized booklet with the client, ensuring page order is intact.

Team Meeting:

• Present job descriptions and KPIs to employees.
• Explain the Performance Pathway Parameters (PPP) and their link to appraisals.

Performance Pathway Parameters (PPP)

1. Excel-Based PPP Sheets:
   • Includes Monthly, Quarterly, and Yearly scoring for each position.
2. Review Process:
   • Consultant conducts initial monthly reviews with the business owner to demonstrate the process.
   • After 1-2 months, ownership of the review process transitions to the client.
   • Consultant conducts quarterly follow-ups for ongoing support.

Guidelines for Deliverables

• Organize diverse client teams (2-3 groups) for cross-functional insights
   Share case studies (e.g., Strategic HRM, Apex Corporation) 10-12 days before the session. Gamify submissions to boost engagement.
• Evaluate functional, divisional, matrix, or flat structures based on business needs and strategic goals.
• Align KPIs with organizational goals and prioritize impactful metrics
• Monthly and quarterly reviews with the client to ensure smooth implementation.
• Once Check by senior consultant then only deliver to client organisation structure.

Timeline

• Team Formation (2 weeks before session)
• After session deliver first draft in 4-5 Days
• Final Draft Within 2 Weeks Post-Session
• Client Approval (3 Days)
• Monthly Reviews (First 3 Months)

Sample Example of JD, KRA & KPI

Head-Human Resources

Key Responsibilities:

1. Strategic HR Leadership

• Develop and execute HR strategies that align with the company's goals and objectives.
• Develop and monitor Key Result Areas (KRAs) and Key Performance Indicators (KPIs) for various departments.
• Partner with senior leadership to understand business needs and provide HR solutions.
• Lead organizational development initiatives to improve efficiency and effectiveness.
• Oversee the development and implementation of HR policies and procedures.
• Foster a positive and inclusive workplace culture. Oversee employee engagement initiatives and ensure high levels of employee satisfaction.
• Facilitate effective communication between HR and other departments.

2. Recruitment & Staffing:

·        Recruitment Planning: Strategize and plan recruitment activities to meet departmental staffing needs, including developing recruitment plans and overseeing their execution.

·        Department Hiring: Coordinate with departments to understand their hiring requirements, manage job postings, conduct interviews, and oversee the onboarding process.

·        Top Problem Interviewing: Address and resolve significant issues encountered during the interview process, implementing solutions to enhance recruitment efficiency.

3. Vendor & Third-Party Management:

• 3rd Party Vendor Management: Oversee relationships with third-party vendors, ensuring service quality and compliance with contractual agreements.
• Daily Approval in Traveling & Guest House: Review and approve daily travel and guest house requests, ensuring compliance with company policies and budget constraints.
• Compliance & Liasoning: Ensure compliance with regulations related to third-party services and manage liaison activities with external stakeholders.

4.     Training and Development

• Oversee the identification and analysis of training needs across the organization.
• Design and implement training programs to address identified needs.
• Measure and analyze the effectiveness of training programs and make necessary adjustments.

5.     Finance and Administration:

• Salary Checking & Approval: Check and approve salary disbursements and related processes.
• Gifting Sample Approval: Review and approve gifting samples for clients and employees.
• AOP Data Management: Compile and manage Annual Operating Plan (AOP) data, ensuring accuracy and completeness.

6. Data & Analytics:

• Data Analytics: Utilize data analytics tools to make informed HR decisions and support strategic planning based on data insights

        I.          Process for Creating Job Descriptions (JD)

1: Understand Organizational Requirements

• Identify Core Functions: Understand the different business functions and determine what roles are required to support them. Consider whether any new roles are needed or if existing roles can be redefined.
• Team Collaboration: Ensure that each department head or team lead contributes input on key responsibilities for their department’s roles.

2: Define Role Specifics

• Job Title: Clearly define the job title based on the function and level of responsibility.
• Role Overview: Write a summary outlining the main purpose of the role within the company, and how it fits within the organizational structure.
• Key Responsibilities: Outline day-to-day tasks, and any long-term projects or initiatives the role will oversee.
• Skills & Qualifications: List essential skills (e.g., technical, soft skills), experience, and qualifications needed for success.
• Reporting Structure: Indicate who the role reports to, and if there are any direct reports.

3: Align with Organizational Strategy

• Strategic Alignment: Ensure the job description aligns with the company's overall goals and strategies. Each role should be able to contribute to broader business outcomes.
• Cross-Department Coordination: Identify areas where the role will need to interact with other departments, ensuring clarity on collaboration points.

4: Create Performance Expectations

• Define KPIs for the Role: Refer KPI Process

5: Final Review and Adjustments

• Internal Review: Conduct a review with stakeholders (e.g., department heads, senior management) to ensure the JD is aligned with company needs.
• Incorporate Feedback: Adjust the JD based on feedback from these reviews, ensuring clarity and alignment.

6: Deliver and Implement

• Distribute Job Descriptions: Once finalized, ensure the job descriptions are shared with relevant team members and candidates.
• Training: If necessary, offer training to managers on how to implement these roles effectively in terms of expectations and performance evaluation.

      II.          Process for making Key Performance Indicator

1. Understand Team Objectives

• Clarify Goals: Define clear, measurable objectives for the team.
• Align with Organizational Goals: Ensure these objectives contribute to the company’s overall strategy.

2. Identify Key Focus Areas

• Determine Impact Areas: Identify where the team's performance most affects organizational success.
• Prioritize Metrics: Focus on measurable factors that directly influence these areas.

3. Define SMART Metrics

• Quantifiable: Choose metrics that are objective and easy to measure.
• Relevant: Ensure metrics align with team responsibilities.
• SMART: Make KPIs Specific, Measurable, Achievable, Relevant, and Time-bound.

4. Set Baselines and Targets

• Baseline Performance: Assess current performance levels for each metric.
• Ambitious Targets: Define realistic but challenging goals tied to a specific timeframe.

5. Determine Reporting Frequency

• Consistent Updates: Decide on reporting intervals (daily, weekly, monthly).
• Critical Monitoring: Implement real-time tracking for high-priority KPIs, if needed.

6. Assign Ownership

• Designate Roles: Assign team members responsibility for specific KPIs.
• Encourage Accountability: Ensure clear expectations and responsibility for meeting targets.

7. Select Tailored KPIs

• Example KPIs by Department:
  • Sales: Sales revenue, conversion rate, average deal size.
  • Customer Service: Resolution rate, response time, satisfaction score.
  • Marketing: Campaign ROI, website traffic, lead generation.
  • Operations: Efficiency, delivery rate, waste reduction.
  • Projects: Timeline adherence, budget control, stakeholder satisfaction.

8. Track and Analyze Performance

• Data Collection: Use tools or systems for accurate data tracking.
• Insightful Analysis: Examine data trends to identify strengths and weaknesses.
• Performance Reviews: Hold periodic reviews to assess progress and recalibrate as needed.

9. Communicate Results

• Transparent Reporting: Share findings with the team, ensuring clarity and context.
• Celebrate Successes: Acknowledge milestones to boost morale and reinforce positive performance.

10. Embrace Continuous Improvement

• Gather Feedback: Regularly seek input from team members on KPI relevance and usability.
• Iterative Refinement: Adjust KPIs based on feedback, shifting priorities, or changing business needs.