Identify the locus of decision making in your organizational structure.
With increasing globalization and the advent of technical innovations, organizations are changing the way they are structured at both the enterprise and functional level in order to adapt to new business realities.
Structural decisions are complex, and decision-makers are often under time constraints, which prevent them from fully considering the elements which would lead to a sustainable structure in the medium (three to five years) or long (five or more years) term.
Frequent organizational structure change can be disruptive to productivity, employee morale, and divert the focus of the organization from its primary mission, goals, and objectives.
Many organizational structures have organically evolved over time – they are not the result of intentional action. The wrong structures can delay decision making, impede communication and workflows, and negatively impact employee morale, resulting in costly overhead and waste.
Restructuring is disruptive and may not result in a more effective function. Ask if you can meet your strategy through other means such as retooling processes, redefining roles, or realigning talent management tools.
No structure can operate at the extremes. A completely centralized structure with no flexibility is frozen. A completely decentralized structure with no control is anarchy.
Impact and Result
Identify an HR restructuring strategy and requirements based on the business strategy.
Assess current state and determine where decision making should rest, either locally or centralized, for a variety of HR functions.
The drivers of restructuring are largely internal, but organizations should refocus on external drivers to help cope with business environments that have become increasingly complex and uncertain.
Determine the Degree of Structural Centralization
1. Determine the degree of structural centralization
Determine stakeholders and develop strategic goals to align key inputs and outputs for the function being restructured.
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