Organizational Hierarchy Management

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Contents

Overview

An organization must, among many other issues, give premier importance to its structure. How an organization is structured has a direct effect on its decision-making, coordination, accountability system, checks and balances, efficiency and many other areas. In today’s complex business environment, the relationships with stakeholders deserve a thorough study and understanding of the organization’s structure.

Organizations are confronted by dynamic geographical operational needs and coordination requirements that may span individuals or divisions. They need to work through multiple product or service portfolios and across customer profiles which require them to gain a holistic perspective on these relationships, cutting across internally as well as externally.

Companies across the globe grapple with understanding and classification of hierarchies as relationships get more and more complex with the entry of newer stakeholders—business partners, suppliers, distributors, resellers, contacts, employees and customers.

Importance of Organizational Hierarchy Management

Organizational Hierarchy Management (OHM) brings all these relationship components under an umbrella view and elaborates on the details of particular relationships of the organization in terms of existing as well as potential relations. Organizations that wish to optimize global resources would do well to streamline the process of OHM.

The complex nature of business functions today as well as shifting structures due to increased Mergers & Acquisitions and divestitures has made the task of traditional OHM even more difficult. Higher levels of accuracy are sought and data needs to be put in the hands of top management in order to make quick decisions. An organization, depending upon its needs, may require keeping track of different types of hierarchies—sales, marketing, finances etc. and for an organization with functions spreading globally and across an array of products, the above mentioned hierarchies may differ accordingly.

Use of Organizational Hierarchy Software

Organizations today may invest in hierarchy management software to keep track of vital information. A well-handled OHM system results in

  • Creating financial reports that are accurate, enabling one to gain a better idea of organizational resources
  • Identifying opportunity for more expansion
  • Finding opportunities for more productivity by placing the right people in the right place
  • Improved management of affiliates and business partners
  • Risk Evaluation being more holistic and realistic

Benefits of OHM Software

The benefit of using intelligent software for OHM is that it provides views of data from several angles, as required by an organization. It prepares a master hierarchy after data inputs from multiple sources. OHM is vital to workforce as well as change management as it gives a bird’s eye view of the reporting structures of an organization, graphic info about key individuals who play a major part in influencing critical decisions, and pointing out able successors. Popular software includes the parameters of scalability, flexibility and basic rules configuration for minimizing discrepancy. Overall, an investment in OHM is strategic and vital for organizations looking at deriving the maximum mileage out of its human capital.

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