The Functional Organizational Structure

Design edit Master subtitle style Click to positions that increase productivity and efficiency

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Slide 1

Designing the organization

The creation of an small business

Many small business organizational structures show the following patterns:

People get added when workload increases. People hired by occasion not by plan
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Designing the organization

Designing for growth

2011 Cultural Chemistry, LLC All rights reserved 4/15/12

A well designed organization is aligned to: Mission of the organization Market & growth
Slide 3

Design Steps
Designing an organization is the mixing the strategy Designing the organization of the organization with the detailed tasks it has to fulfill to be successful. Both the bottom-up and topdown approach will be used.

2011 Cultural Chemistry, LLC All rights reserved 4/15/12

Slide 4

Design Core Functions

When designing your Designing the organization structure, keep the organizational organizations bigger picture in mind.

What is the mission. What impact does the mission has on the functions, what is your market strategy and how does this impact the functions? What different traits does one have to deal with one or the other service or product that you deliver? What barriers hold the current organization due to his people, processes and maybe his location? See the templates to guide you 4/15/12through the 5 Slide questions

2011 Cultural Chemistry, LLC All rights reserved

Design Core Functions

Most small businesses will have three core functions Designing the organization are based on and a few sub functions. The functions the strategy. Enabling
Everything that needs to happen to start building your product or delivering your service. Functions like sales and marketing, but also purchasing and supplier/contractor management. Execution/delivery When you are in manufacturing it would be your assembly line, in construction it is the construction project management. A larger organization can have multiple execution groups (like residential and commercial construction). Support Every organization has to have the side processes that support the rest of the organization, the I.T. and the human resources functions are just two examples.
2011 Cultural Chemistry, LLC All rights reserved 4/15/12
Slide 6

Design Core Functions

When thinking about the functional organizational Designing the organizationon the design of chart, the Top Down design focus the Core Functions.
Top Down Design
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Slide 7

Design Roles and Jobs

When thinking about the functional organizational Designing the organizationon the design of chart, the Top Down design focus the Core Functions.

2011 Cultural Chemistry, LLC All rights reserved 4/15/12

Bottom Up Design

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Design Roles
Small Business employees Designing the organization often phrase their work as wearing many hats. Roles are the individual hats of your employees. Roles are also defined as tasks that needs to be fulfilled to run an Template to design organization. By describing roles: the roles/tasks first PowerPoint it is often Excel easier to designing individual jobs, but also the
1. 2.

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Slide 9

Group roles to build jobs X

Designing the organization

At this time you know what tasks need to be fulfilled by the organization. By combining the roles a job is created.
2011 Cultural Chemistry, LLC All rights reserved 4/15/12

A well defined job will enable

Slide 10

Bringing roles together

Validate data Designing the organization or the template in Use the second tab on the Excel Spreadsheet
1.

(current organization)

1.

2.

1.

2011

PowerPoint and fill out the employee name and their current available hours Total hours in roles = Total hours available by current or planned to hire employees. Determine Barriers Looking at the strength of your current employees fill out the columns about where they can, could and are the best fit for the core function Determine how many employees are available in each location Determine how many employees are in each complexity category Sorting on core functions Sort the roles on core functions Sorting on best fit When the first sort is done by core functions, the majority Slide 11 Cultural Chemistry, LLC All rights reserved 4/15/12 of the roles will appear. For all others use the hints (next

Bringing roles together

Bringing the last pieces together
1.

Designing the organization

1.

(current organization)

Sort on Core Function

Bringing an employee to the office an half hour a day, because of a role, is a loss of efficiency. As much as possible. Core Functions often resembles a certain required trait. Allowing roles to cross core functions, means that the jobholder needs to be able to showcase different behaviors. It makes it very difficult to recruit a high performer if it is across core functions.

Each job should have as little movement as possible.

1.

Sort on Complexity

You expect that the workload of all roles will increase. In the future the roles can be separated and create jobs different at different complexity levels. A role that has different complexity levels is good for jobholders who are growing their skills. Understand that the jobholder will need coaching on the more complex roles and can get bored easily with the roles with lower complexity.

2011 Cultural Chemistry, LLC All rights reserved 4/15/12

Slide 12

Done!
When roles turned into jobs, you are done! CONGRATULATIONS

Designing the organization

COMMUNICATE WITH YOUR EMPLOYEES
Understanding of an organizational structure and future growth opportunities increases engagement.

What are the next steps to increase efficiency, reduce the changes of turnover and increase employee engagement?

Align reporting structures Develop career ladders Develop development plans

2011 Cultural Chemistry, LLC All rights reserved 4/15/12

Slide 13