The implementation of a formal organisational structure is the main difference between small businesses and large businesses. You must understand that organisational structure is important as it provides guidance as well as clarity on many human resource issues.
If you notice that a lack of formal organisation is hurting your company’s ability to get things done, it is time that you follow management strategies to plan your workforce. Here’s what you can do:
Make a list of your needs
Before you make a list of your needs, it is crucial that you first identify the problems that your organisation faces. Do you have problems with all managers reporting directly to you without formal hierarchy? This problem signals a new layer of management.
As soon as you identified the problems, you can start listing management needs to solve them. If you do not have an organisational chart, it is time that you create at least two – one chart with the existing employees or positions and one chart using positions that you would create if you launch your company today.
Do not skip this step. In the end, the charts will show you where you are and where you want to go. Get the help of your managers and other key employees to ascertain if you are missing any needs. With the inputs of managers, you will be closer to solving organisation problems.
Review the current positions in the company
The next thing that you need to do is write job descriptions for every key organisational position you have in the company. If you already have job descriptions, you should closely examine the second chart that you just developed. This is to determine if you can integrate existing employees and positions into it. The key here is to differentiate between employees and positions.
Start evaluating employees
You will come to realise that you have created the right positions but you have the wrong people. This can be remedied by shifting employees into different positions. With this, you need to compare job descriptions and determine who you need to transfer, terminate and retain.
Meet with HR and set a budget
Once you have established the right organisational chart that will work for the company, you need to meet with HR and set a budget. The budget should include recruiting, compensation, training, benefits and other development costs. If you haven’t figured out the right approach, it is time that you get help.
Sometimes employees are too close to a problem to even identify it. This is when consultants like Tandem come to the picture. Consultants can supplement the staff. In most cases, businesses discover it can actually save thousands of dollars hiring consultants instead of full-time employees.
When you look at it closely, a consultant can act as a promoter for change. Employees do not like change but sometimes it is needed and only consultants with their expertise can impellent changes necessary to succeed. More importantly, consultants can make things happen without worrying about internal issues (like corporate culture and employee morale).
It is important that you ensure your structure is working especially if the company is expanding. You know the answer to poor organisational structure and there is no reason why you should delay it. As soon as you set your new orgnisational chart, training needs and budget, you need to announce it. Along with the announcement, you should give employees their new job descriptions and start training.