Organisation set up

Organisation set up

A company is not just a group of employees. It must be structured in a way where different objectives of the business can be achieved in the best possible manner. That’s why the company has various departments, functions, positions, job roles, seniority, grades and reporting guidelines.

The way these are organised is called organisation set up.

The organization setup can vary depending on the size, nature, and industry of the company. Startup and SME organisations must not overlook this aspect of the business. Because it helps in better communication and enhances productivity. Especially when a small business scales up, a robust organisation structure makes a huge difference.


In the context of HR, grades refer to a system of categorizing jobs according to their level of responsibility and complexity.

This allows organizations to create a clear hierarchy of positions within the company and establish guidelines for compensation, benefits, and career development opportunities for employees.

Grades are typically assigned based on factors such as required education levels, necessary skills and experience, decision-making authority, supervisory responsibilities, and overall job complexity.

By using a grading system, companies can ensure that employees are fairly compensated for their work based on objective criteria.


Designation refers to an employee’s job title or position within a company.

It is the official label given to a particular role that helps in identifying the level and responsibilities associated with that role. Designation is often used interchangeably with job title, but it may also include additional information about the employee’s position such as pay grade, reporting structure, and level of authority within the organization.

Having clear and well-defined designations is important for creating an organized and structured hierarchy within a company, which helps facilitate communication, decision-making processes, and career growth opportunities for employees.

Position Code

A position code is a unique identifier assigned to a particular job within an organization.

It is a code that helps in identifying the specific job position, and distinguishes it from other positions within the same company.

Position codes are typically used for internal tracking purposes, and may include information such as department or division, pay grade, and level of responsibility associated with the job.

These codes can be helpful for HR managers when creating organizational charts, determining compensation packages, and ensuring that each position within the company has clear responsibilities and requirements.


Departments are functional areas within an organization that are responsible for specific tasks or functions. They are often created to group together employees who share similar skills, training, or expertise.

Examples of departments in a typical organization may include accounting and finance, human resources, sales and marketing, IT, operations, customer service, and research and development.

Departments can vary in size depending on the needs of the company. Some departments may be quite small while others may have hundreds of employees.

Each department has its own set of goals and objectives that align with the overall mission of the organization. By dividing an organization into departments, companies can ensure that each area is staffed by individuals with the necessary skills to perform their specific duties and responsibilities efficiently.

Reporting Manager

A reporting manager is a person to whom an employee directly reports within an organization.

They are responsible for overseeing the work of their direct reports and ensures that the reporting employee are meeting the goals and objectives set by the company.

Reporting managers may be responsible for delegating tasks, providing feedback, conducting performance evaluations, and coaching their employees to help them improve their skills.

Reporting managers can play a critical role in an employee’s career growth and development. A good manager can provide valuable guidance, support, and mentorship that can help employees gain new skills, knowledge, and experience.

They can also serve as advocates for their employees within the company by recommending them for promotions or other opportunities.

Having a strong relationship with one’s reporting manager is important for both the employee and the organization as a whole. When employees feel supported and empowered by their managers, they are more likely to perform at a high level and contribute positively to the success of the company.

HOD Head Of Department

HOD stands for Head of Department, which is a leadership position within an organization that oversees a specific department or functional area.

The HOD is responsible for managing the day-to-day operations of their department, setting goals and objectives that align with the company’s overall mission and strategy, and ensuring that all employees within their department are working collaboratively to achieve those goals.

The HOD also plays a crucial role in developing and implementing policies, procedures, and initiatives that promote growth and success within their department. They may be responsible for hiring new employees, conducting performance evaluations, providing feedback and coaching, and leading training sessions to help employees develop new skills.

In addition to overseeing the work of their department, HODs often collaborate with other leaders within the organization to ensure that all departments are working together effectively towards shared goals. They may attend meetings with other senior leaders to discuss company strategy or participate in cross-functional projects aimed at improving organizational performance.

Overall, the role of an HOD is key to the success of any organization as they are responsible for driving productivity, fostering collaboration, and ensuring that each employee has the resources they need to perform at their best.

List of working Locations

A list of working locations typically refers to the physical locations where employees of an organization work from. This can include offices, factories, warehouses, retail stores or any other location where work is being done on behalf of the organization.

In today’s world, many organizations also offer remote work options for their employees, which means that employees can work from home or any other location outside of a traditional office environment. The list of working locations may vary depending on the nature of the business and the geographic scope of its operations.

Having a comprehensive list of working locations is important for several reasons. For instance, it helps organizations to keep track of their physical assets and resources across different locations. It can also help in planning for operational efficiency by ensuring that each location is staffed appropriately and equipped with the necessary resources to meet organizational goals.

A list of working locations can also be useful when developing disaster recovery plans or emergency response protocols. By having a clear understanding of where their employees are located and how their operations are distributed across these locations, organizations can better prepare for potential disruptions to business continuity caused by natural disasters, power outages or other unexpected events.

A list of working locations provides an essential framework for managing the physical assets and resources of an organization and ensuring that its operations run smoothly across all its various locations.

Annual Holidays

Annual holidays refer to the paid time off that employees receive each year as part of their employment benefits.

In most organizations, employees are entitled to a certain number of annual holidays based on their length of service and other criteria specified in their employment contract.

The purpose of annual holidays is to provide employees with an opportunity to take time off from work for rest and relaxation, spend time with family and friends, pursue personal hobbies or interests, or take care of other important life events. By providing this benefit to employees, companies can help improve employee morale, reduce burnout and stress levels, and ultimately increase productivity

Cost Centre

In accounting and management, a cost center is a specific department or unit within an organization that incurs costs but does not generate revenue directly.

Cost centers are responsible for managing and tracking the costs associated with their operations, such as salaries, rent, utilities, and supplies.

The purpose of cost centers is to provide management with information on how much it costs to operate each department or unit within an organization. By doing so, managers can make informed decisions about how to allocate resources and improve operational efficiency.

Cost centers are often used in larger organizations that have multiple departments or units. Each cost center may be assigned a unique identification code to help track and categorize expenses. For example, a company’s marketing department might be designated as a specific cost center with its own budget and set of expenses that are separate from those of other departments.

By tracking expenses at the cost center level, organizations can identify areas where costs may be higher than expected and take corrective action to reduce them. Cost center data can also be useful for calculating profitability and making decisions about investment opportunities.

Cost centers play an important role in helping organizations manage their costs effectively by providing insight into the financial performance of individual departments or units.

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