Seeking Insights on Restructuring: How Do Chemical Manufacturing Giants Organize Their Teams?

Dear Friends,

I am working for a company that is in chemical manufacturing for the pharma industry. We are in the process of completely restructuring/revamping our company. For the same, I would like to have some details/inputs on the organization structure, hierarchy, grade system, and job roles from a chemical manufacturing company. Some companies we are trying to benchmark are:

1. Tata Chemicals
2. Jubilant Life Sciences
3. Ranbaxy
4. Dr. Reddy's

I would request if you have or know somebody who has any data/inputs on how to go about doing the same, please do help me.

Thanking You & Regards,
Bhairavi

Understanding Organization Restructuring

Organization restructuring occurs when the reporting hierarchy of a company changes. After restructuring, certain groups will report to different departments, and some departments may be newly created or disappear altogether. If the organizational chart has changed shape, then restructuring has occurred. It is important to note that there is no need for people to be hired or fired for restructuring to happen.

I suppose you are talking about API units. At the plant level, we may have a Plant Head. Under him, different departments work.

Major Departments in a Plant

- Production
- Quality Control
- Quality Assurance
- Warehouse
- Engineering
- Projects
- HR & Admin
- Accounts & Finance
- Purchase & SCM
- IT
- Commercial
- Liaisoning

All the above departments' Heads of Department (HODs) report to the Plant Head. However, it is important to note that there is both administrative and functional reporting. While all HODs report to the Plant Head, their functional reporting remains at the corporate level, i.e., to VP (HR), VP (Projects), etc.

In the APIs, the reporting relationship of Quality Departments must be directly to the Corporate Quality Head. As per the GMP Guidelines, they are an independent entity from the plants.

Employee Grades

You can group your employees as follows:

- G1 Directors
- G2 GMs to VPs
- G3 AGMs and DGMs
- G4 Managers and Sr. Managers
- G5 Assistant Managers to Deputy Managers
- G6 Executives, Engineers, and Assistant Engineers
- G7 All staff up to Senior Officers
- G8 Workers, i.e., Electricians, Attendants, Operators, etc.

Job Roles and Descriptions

For job roles, you should have job descriptions. You can group them as well. For example, in production processes, you have Chemists. You can group them, but Chemists working on the production process and those working in the clean room shall have different job descriptions.

For better utilization of human resources, you can fill manpower gaps by internal adjustments or rotations.

Shift Workings

Since API processes have to be run continuously, the plants have to work 24 hours. Therefore, we have to make shift workings as per shift schedules.

Increments and Rewards

Most organizations work on a percentage basis concerning increments and rewards. However, this system is not ideal because high-salaried employees receive more, and low-salaried employees receive less. To resolve this issue, you may have different increment slab systems for different categories of employees.

Thanks

Thank you so much for the inputs provided. I would like to understand the details thoroughly as we need to come up with a comprehensive solution and alternatives within the next 8 days to present to the CEO. I would appreciate it if we could have a telephonic discussion. My contact details are:

Bhairavi Barodia Saha
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]

I kindly request you to call me or email me your contact details, and I shall get in touch with you.

Thank you & Regards,
Bhairavi

Dear Sir, This is Mahesh, working in the HR Department at API Pharma. I would like to inquire about the yearly increment based on grades and which grade corresponds to the positions of Shift Incharge and Chemist. Your feedback would be greatly appreciated.

Thanks & Regards,
Mahesh