This component facilitates creating a hierarchy for the organization. In any organization there may be different structural units like corporate office, factory/production facility, warehouse, distribution centers and sales outlets. Each of these units will have their own reporting structure like functional reporting, administrative reporting etc., with various ‘Consolidation Points’. This entails integrating all the diffuse reporting structures of multiple units into a cohesive corporate pyramid. This corporate pyramid represents the schematic representation of communication flow in the Organization.

You can use this component to,

• Create hierarchy chains.

• Create organization elements.

• Set hierarchy parameters.

• Create benchmark job levels.

Creating Hierarchy Chain: The hierarchy in the organization can be built with multiple levels and each such level is reffered to as an Organization Stratum. Company, Business Unit, Work Location, Department, and Job etc., are some examples of these strata. The Organization’s hierarchy could be built using these Strata and Organization Elements attached to each Stratum. Each Strata represents a distinct level in the Organization’s hierarchy.  Organization elements can be attached to each Organization Stratum. For example, Strategic Business Unit (SBU) could be an Organization Stratum. Organization Elements in this Stratum could be Consumer Products Division, Industrial Products Division, etc.

Setting Hierarchy Parameters & Organization Elements: Hierarchy parameters need to be defined to establish the order in which the organization structure should be built using various Strata. An apex stratum can be specified along with an apex organization element. Once the hierarchy is defined, multiple hierarchy chains can be attached to it so that a parent-child relationship is established among the various organization elements. By defining multiple chains under a hierarchy, the entire organization structure can be built based on parameters such as Administrative Reporting, Functional Reporting etc.

For example, an organization ABC Inc. could have the following organization structure.

 

 

Such a structure could be built by defining the following entities. Organization Stratums called Regions and Locations need to be defined. Organization Elements viz., East Region and West Region should be defined for the Organization Stratum, Regions. Organization Elements, for example, Boston, New York, Seattle and Los Angeles should be defined under Organization Stratum, Locations. A Hierarchy called ‘ABC Reporting’ is created and the Apex Stratum is identified as ‘Company’ and Apex Organization Element as ‘ABC Inc.’ The order of the Organization Stratum should be Company, Regions, Locations, and Departments. Seven Hierarchy Chains have to be created to represent all the combinations consisting of ABC Inc-East Region-Boston-Finance, ABC Inc-East Region-Boston-Marketing and so on. Such a Hierarchy established, can be used to generate Reports. Each Organization Stratum could be a consolidation point.

Building a benchmark for job levels: Job Levels depict the position of a Job in the hierarchy of the organization. In order to compare the Job Levels of various Employment Units, it is essential to have a common reference point. Benchmark Job Levels are defined to cater to this need.

When an employee has to be promoted/transferred across employment units, the Job Level which he/she should be assigned should be identified. Through this component, you can create a standard set of Job Levels i.e., Benchmark Job Levels against which the Job Levels defined for various employment units can be compared.

For example, consider the following scenario:

Benchmark Job Levels ABC Inc	Job Level New York	Job Level Los Angeles	Job Level Boston	Job Level                Philadelphia	Job Level            San Francisco
01 - CEO/ Directors	01 - Director	01 - Director
02 - President/ VP	02 - VP/ General Manager	02 - General Manager		01 - General Manager
03 - Senior Manager	03 - Senior Manager	03 - Manager	01 - Manager		01 - Manager
04 - Manager	04 - Manager	04 - Assistant Manager		02 - Manager	02 - Senior Manager
05 - Engineers/ Executives			02 - Engineers/ Executives	03 - Engineers/ Executives	03 - Engineers/ Executives
06 - Jr. Engineer /Jr.Executive			03 - Jr. Engineers /Jr.Executive	04 - Jr. Engineers /Jr.Executive	04 - Jr. Engineers /Jr.Executive
07 - Field Staff			04 - Field Staff	05 - Field Staff	05 - Field Staff
08 - Office Assistants	05 - Office Assistants	05 - Office Assistants			06 - Office Assistants
09 - Trainee	06 - Trainee		05 - Trainee		07 - Trainee

 

The Benchmark Job Level in the Head Office establishes equivalence among the Job Levels of various Branches, in this example. Such a Benchmark would include all possible Job Levels and so it should be a superset of Job Levels existing in the Organization.

Getting familiar with the activities inside

Go to activity…	…to carry out task
View Organization Hierarchy	Viewing organization hierarchy details
Edit Hierarchy Chain	Editing hierarchy chain details
Edit Hierarchy Parameters	Editing hierarchy parameters
Edit Organization Elements	Editing organization elements
Edit Benchmark Job Level	Editing benchmark job level
Associate Benchmark Job Level	Associating benchmark job level
Create Hierarchy Chain	Creating hierarchy chain
Create Organization Elements	Creating organization elements
Set Hierarchy Parameters	Setting hierarchy parameters
Create Benchmark Level	Creating benchmark level
View Hierarchy Chain	Viewing hierarchy chain
View Hierarchy Parameters	Viewing hierarchy parameters
View Organization Elements	Viewing organization elements
View Benchmark Job Level	Viewing benchmark job level
View List of Affected Employees	Viewing list of affected employees