Q&A: Organizational design—how to do it right

Catie Grigsby, Senior Product Marketing Manager at TriNet Zenefits
Nov 3, 2022

HR organizational design is the administration and execution of an organization’s strategic plan. Ultimately, it’s about creating the best fit between the strategic choice of the organization and the organization setting. So how do you do it successfully? Catie Grigsby, Senior Product Marketing Manager at TriNet Zenefits, shares her insight into how to do organizational […]

HR organizational design is the administration and execution of an organization’s strategic plan. Ultimately, it’s about creating the best fit between the strategic choice of the organization and the organization setting. So how do you do it successfully?

Catie Grigsby, Senior Product Marketing Manager at TriNet Zenefits, shares her insight into how to do organizational design right.

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On this episode, you’ll hear:

  • [00:24] The definition of organizational design
  • [00:51] Five principles of organizational design
  • [01:15] Common mistakes companies make

 

Transcript

Welcome to pops, the show that shows you how to shift from human resources, paperwork to people operations for the new world of work. How by answering one question at a time. I’m Catie Grigsby, Senior Product Marketing Manager at TriNet Zenefits here to help answer the question, how to do organizational design rights.

Let’s start with a definition. According to the academy, to innovate HR organizational design is the administration and execution of an organization’s strategic plan. Ultimately, it’s about creating the best fit between the strategic choice of the organization and the organization setting. So how do you do that?

Right. Well, I’m not an expert, but wanted to share how I’ve seen companies get it wrong and some tips to avoid these mistake. There are five principles of organizational design. The first one is specialization. This is the extent to which you want to define work streams and roles. It can range anywhere from assembly line type of specialization to maximize efficiency and quality control to generalists.

That way at Maximizes Creativity and Boost employee motivat. What I’ve seen companies do wrong here is letting employees guess which level you’ve chosen. So a tip I’d like to share is using a racy chart. It stands for ours for responsible, a accountable C contributor, and I informed this can help eliminate any confusion on the team about who is doing what and reduce any redundant work.

The next principle is span of control, which is essentially the employee to manager ratio. You have to decide whether to keep it narrow or go wide. The more training and experience employees have, the wider the span of control can be. What I’ve seen organizations do wrong is assign managers who don’t even have a basic knowledges knowledge of an employee’s role.

Companies are frequently guilty of this. When there is a layoff or period of high turnover, employees get reorganized temporarily, even if it doesn’t make sense. Be sure that that temporary. Doesn’t stay permanent. The third principle is departmentalize. In other words, how you group employees, whether it’s by business, unit function, or project.

A tip here on what to avoid is don’t create silos. Encourage collaboration across whatever units you determine and encourage employees to learn and work across all depart. What I love about CFIs is that I can easily search the People Hub in the mobile app to navigate the org chart and find out my colleagues’ job roles.

The fourth principle is knowledge and competence. This answers the question of who or what input is needed for certain decisions to be made, What not to do here. Don’t centralize it at the. Projects can just get stalled. An example of this is waiting on a CEO to review website pages before going live, or CEOs that hold weekly control boards to approve every expense in the company.

All of this just slows progress for the company and frustrates employees. Last is innovation and adaptation, meaning you need to maintain flexibility to adapt your structure. What not to do here is don’t stop listening to employees. Keep a pulse on employee satisfaction of management at different levels.

For example, their direct manager at the executive level, etcetera. With benefits. It’s easy to create surveys, to assess results by department, by manager, and even tenure. Do you have a question for us? Click the link in the show notes. Or if you’ve got other ideas and feedback about our show, send them to podcast sy.com.

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