How Can We Build a Strong Organization Structure for a Growing Software Business?

Hi All,

My brother is running his own business (Software development) just two years ago. He wants to transform the company into an organization, and as a part of this, we have planned to establish a proper structure. I am an MBA HR professional working in an MNC software company, and I am assisting him in this endeavor. We are seeking ideas to develop policies in areas such as HR, Marketing, and networking. Your assistance in this matter would be greatly appreciated.

Can you help me?

Regards,
Vijay

Give some more details about the organization. For example:

- Number of employees presently with the organization
- Work profiles
- Levels in the organization
- Number of departments that already exist

Based on this information, we can proceed with suggesting an organizational structure and other requisites.

Hi Ajmal Mirza,

Thank you for your reply. Currently, 75 people are employed in it. The company has 3 departments: one is CAD, the next is Software Development, and the other one is Engineering Projects.

Regards,
Vijay

Hi Vijay,

As you have only 75 employees, I think a tool in Microsoft Office would suffice in the initial stages to help you design the structure.

In MS Word, insert >>> Picture >>> Organizational Chart.

In PowerPoint, insert >>> Picture >>> Organizational Chart.

Once you prepare the structure, take another look. Are the reporting structures visible on the screen similar to what is happening in your organization? Fine-tune the structure visible on the screen until it matches the current structure in your organization.

After you have prepared this, check if the structure is flat or traditional. Depending on the strategies and work culture, you can modify the structure. Normally, the flat structure is considered better in service organizations, but it ultimately has to be the CEO's call. Depending on the needs, you can later design an optimal structure that best suits your organization.

I am attaching a file of the organizational structure of an engineering consulting firm, which might work as a guideline for you.

Hi Vijay,

I was earlier working in a similar company as their first Senior HR Manager. What I understand from my experience is as follows:

1. The ideal hierarchy in this company should not consist of more than three levels: first, the higher management; second, the Senior members; and then everyone else. Do not create too many designations.

2. Not more than two, maximum three, HR people (one Senior, one Junior) should be employed to handle things.

3. It is most necessary to establish HR policies at this stage. Once the company grows, it becomes difficult to implement them. You can also address the concerns and reactions by employees on a personal basis and make necessary changes. I believe this should be your priority.

4. It is important that you set processes for almost all day-to-day and important functions in the company, such as leave applications, complaint flows, etc. In a small company, employees are often accustomed to going to the top-level management for everything. This is mainly because of the small structure and lack of formal authorities given to others. This situation should be addressed. The top management should now only focus on business growth, while designated individuals take care of other matters.

5. The challenge here is to transform a company into an organization without losing the spirit of togetherness. Avoid creating too many complex processes; things should be straightforward and communicated to employees in a simple manner. It is crucial not to lose the team cohesion at this stage. Please take care.

6. The initial reaction to any policy or process may not be easily accepted. You need to explain to employees that this is part of growth and should not create divisions among them.

Let me know if you have any specific requirements, and I will gladly share my experiences at all levels.

Hope this helps.

Regards

Hi Rakhi,

You provided very vital information in the context of a small company. I have a very small company with only 10 employees involved in web development work. What are your suggestions for my company?