ERP Functions: Human Resource Management 2

Last week we have started understanding functions of Human Resource. This week we shall continue the same with exploring more on Organizational Chart.

It is obvious that each company has employees who have to play different roles with defined responsibilities. In order to identify these and to make the process of managing employees simpler these are defined as designation inside the company. Each employee of the company, therefore is been identified by not only by name but also by designation. Even though it is completely left to company's management in deciding the designations to be in the company there are certain commonly used designations. Junior Engineer, Senior Engineer, Project Manager, Team Leader, Operation Head, Head Of the Department etc are the some among vast set of designations.

The defining of designation also helps in setting up hierarchy in an organization. Since each designation is defined with its roles & responsibilities it is obvious that an employee having a particular designation do have same roles & responsibilities. Along with that each employee will be reporting to higher designation person, and will also be delegated about his works from him/her. Having all the hierarchy defined for the designations in the company is called Organizational Chart. Here are some of the examples of the Organizational Chart of various types of organizations.
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Pay structure, Bonus, Promotion, facilities given to the employees are largely depends on designation of the employee. Designation also tells about experience of a person in an industry. It is to be noted that designations and category of employees are not the same terms. Former is defined based on roles and responsibilities while later for ease of grouping.

This is about Organization chart. Coming blog we shall discuss on Components of Pay Structure.

Keep watching this space..