The dynamics of the contemporary labor market initiate a need for constant changes and agility when it comes to company business. Changes such as this one attribute to a rising tendency that drives companies to transform their organizational structure as well as manage their business operations and HR. This claim is backed by the survey findings of „McKinsey & Company”, one of the leading global consultancy agencies. Those findings show that as much as 60% of employers report to have gone through a process of redesigning their organizational structure in the past two years. In contrast to that, baby boomers say to have gone through similar transformations once or twice in their entire business career. Unfortunately, the survey also shows that only a quarter of those redesign programs were rated as efficient. More than 40% of employers exceeded their planned budgets for this program while a third either fails to meet their goals or even worse, doesn’t experience any measurable improvement as a result of the program.
How should the (re)design of organizational structure be optimized?
One of the potential solutions lies in a systematic approach combined with a thorough analysis of all the components which make up the organizational structure, processes and HR. The constituents we just mentioned need to be simultaneously directed towards accomplishment of the strategic goals set. Why? Because only when the program of organizational redesign is aligned with a company’s strategic goals does it create a stable foundation for their fulfilment. Besides, the program needs to be flexible enough so it can be efficiently adjusted to upcoming changes, which are a certainty considering the dynamic nature of the labor market.
How does the whole process work?
Two key phases are distinguishable:
- Data gathering for the purpose of defining key organizational aspects
It often happens that a great chunk of company resources is directed towards activities that don’t contribute to the accomplishment of company goals at all. Weighed by the pressure of day-to-day operations, both employees and the management often forget to reassess the importance and value of company goals as often as they should. ABO methodology comes into play here, providing criteria that helps clearly determine the contributions of every business activity to the company’s strategic goals and sort them into core and non-core activities accordingly. The final step in this phase includes gaining insight into ways in which different types of work tasks are distributed both within the company teams and among them as well.
- Developing a matrix for the purpose of gaining insight into resource distribution
Only after all the business activities are precisely defined and positioned are we able to create a clear matrix which outlines the relationship between all work tasks and human resources. However, when this is accomplished we are rewarded with evident, accurate and measurable indicators of different aspects of a company’s organizational structure and answers to the following questions:
- Are there any overlaps in the work activities of different members within teams and/or among different times as wholes?
- Are teams focusing on activities which are not of essential importance to the company?
- Are team members focusing on activities which are not in their job description, considering their positions on the team?
- Are employees in one single position delegated with an optimal number of tasks?
- Are working tasks distributed equally and fairly among positions which are under the same level?
- Is the number of working hours within a company sector optimally distributed according to the data regarding ABO core and non-core activities?
It’s worth noting that these programs for (re)designing of a company’s organizational structure are applicable to all organizational systems, no matter their size, type or the phase of development they are in.
Which goals can be accomplished with (re)design programs?
Systematic planning and organization which lie in the core of these programs bring forth effective allocation of company resources and contribute to improvement of all business operations. Put more precisely, effective structural (re)designing optimizes how human resources are managed and in turn leads to optimization of company expenses.
(Re)Design programs improve the efficiency of work organization within companies, which is the foundation of success. For such efficiency to be achieved, it is necessary to identify concrete business aspects where room for improvement can be found. This brings us back to defining strategic goals and directing the company resources and activities towards the realization of the said goals – and the circle is complete.
It is the responsibility of our Research Team @Assert to provide a detailed and realistic representation of working conditions on the market to our clients, as well as to successfully map out all the profiles and personnel, both employed and unemployed, across different industries. We strive to direct the market towards ensuring fair and transparent conditions for all employees. Our focus is on creating plans and methodology, as well as efficient internal and external research in accordance with highest standards of quality and efficiency, and the specific needs of our clients. Additionally, we propose and implement action points that give companies a competitive edge on the job market.