Role of HR Consulting in Redesigning Organizational Structure

Organizational structure is the driving force behind the performance and growth of the
organization. For an organization to achieve success and competitive advantage, it is highly
important that there should be complete alignment between the organizational structure and
the strategic goals of the organization. A properly coordinated organizational structure improves
the flow of information and communication within the organisation.

Generally, changes in different aspects like political, cultural, competitive, market, technologies,
business requirements, resources, regulations, business goals, organic growth, leadership
changes, mergers and acquisitions, etc. may trigger the need to redesign the structure of the
organization.

The organization’s structure should fit properly with the changing needs and objectives of the
organization, and the market conditions as well, to maintain its efficiency in the long run.

An obsolete organizational structure results in:

Inefficient organization

Lack of both, inter as well as intra units/ departmental, coordination

Ambiguous role definition

Emergence of conflicts in the workplace

Disrupted or elongated flow of work and processes

Multiple superior/ supervisor issues

Creation of various extra organizational committees, departments, and units

Improper utilization of resources

Employee dissatisfaction

High turnover rates

Therefore, for an organization it is very important to revise and update its structure to maintain
its purpose and functionality. Further, redesigning organizational structure helps in improving
internal processes and employee engagement, thereby, favourably affecting the financial
performance and competitive position of the organization.

Organisational structure redesigning involves alignment of the organizational structure to the

business strategies by providing appropriately redesigned model for the existing structure,
implementing the new structure, and necessary strategies for downsizing or related changes in
the structure.

An HR Consulting Firm can diligently perform the task of analyzing and redesigning the structure
of the organisation in accordance with the strategic goals, objectives and mission of the
organization.

While performing the task of organizational structuring, HR Consultants should consider

following issues:

The purpose, objectives, goals and strategies of the organization or the specific units

The navigation of work flow and processes to be simplified and standardised

The needs, requirements and expectations of the clients are met with

Maintaining effective flow of communication within the organization

Enough room for employment development and career progression for the employees

Efficient as well as effective utilization of the resources available for the organization

Complying with the legal formalities

Creating a structure which creates a motivating and satisfying environment for the employees

Understanding the market trends and industry norms/ best practices

The process of organizational structuring involves following comprehensive stages:

Assessment of the organization’s structure, as it exists in the current situation and as it had
existed before any of the previous changes or revisions.
Identification of the root causes of organizational performance related issues.

The analysis is them examined in relation to the organizational culture, strategic goals and
business objectives. Again, both the existing factors as well as previous factors are considered
here. Future, future strategic goals and objectives are also taken into consideration so that the
revised organizational structure caters to the current as well as the future needs of the
organization.

Preparation of the revised or updated organizational structure.

Implementation of the structural changes keeping in mind that the implementation should bring
in least distraction to the organizations operation.

An evaluation is then carried out regarding the efficiency and fluency brought in by the changed
organizational structure.

Thus, HR Consultants can facilitate in the development and designing of an effective

organizational structure which optimizes the resource utilization and promotes growth of the
organization.