Human Resources performs some of the most essential functions of any business. In fact, the role of HR is arguably even more crucial since the start of the Covid pandemic. However, for it to perform optimally, the HR department needs to have a clear team structure. How do you do this? By designing a human resources organizational chart that clearly outlines the roles and responsibilities of each employee within the department.
In this post, we will look at the benefits of creating an HR organizational chart in your company. We will also look at some of the crucial roles that should be included in your chart. We will end by sharing a few tips on what you should keep in mind when you create your own organizational chart.
Table of Contents
Table of Contents
Why Create a Human Resources Organizational Chart?
A human resources organizational chart is a visual representation of the internal organizational structure of the HR department. It details each person within the department, their role and responsibilities, and how each individual relates to other members of the department. The aim is to clarify the hierarchy and chain of command within the department so that reporting lines are clear.
An HR organizational chart also ensures each employee within the company understands who is responsible for each key HR function. This makes it easier to implement corporate strategies and objectives and ensures employees are clear on their roles in meeting those objectives. It also serves to highlight any potential gaps in the functions performed by HR. This can be especially useful if you are in the process of converting into an agile organization.
What Are the Key HR Functions?
The ultimate function of the HR department is to help the organization deliver its corporate strategy and objectives through the effective management of its most important asset: its employees. It does this by designing an HR strategic plan focused on each key function of the department.
To make sure your organization performs at its best, you should make sure all key HR functions are taken into consideration when you design your HR organizational chart and prepare your strategic plan for the year ahead.
So, what are these key HR functions? Let’s take a look at the basics.
Recruitment & Selection
Arguably the most important function of the HR department, as a company’s most important asset is its employees. An efficient recruitment and selection process ensures that the workforce has the relevant skills and abilities for the organization’s current and future needs.
- Workforce planning
- Job design and job analysis
- Drafting and publishing job vacancies
- Vetting CVs to find suitable candidates
- Conducting interviews and assessments
- Undertaking reference checks
- Hiring and onboarding new recruits
- Managing recruitment tools and software solutions
Another key function of the HR department is measuring, tracking, and optimizing the performance of employees. The aim is to identify areas for improvement and encourage employees to continuously develop their skills.
- Goal setting
- Regular reviews and appraisals
- Collecting employee feedback
- Performance evaluation
- Managing performance management systems
Learning & Development
A branch of performance management, where the focus is on empowering employees to fulfill their potential and develop professionally. It’s all about bridging the gap between the workforce of today and the workforce of the future.
- Encouraging professional development
- Designing career development programs
- Offering training and development opportunities
- Identifying skill gaps in the workplace
- Coaching and mentoring
Compensation and Benefits
A key function, as fair compensation is vital for attracting talent and motivating and retaining employees. This includes salary or hourly wage, plus secondary compensation including health insurance, stock options, reward programs, 401k matches, pension plans, paid time off, parental leave, or any other perks offered to employees on top of their salary.
Duties also include designing benefits and compensation policies and managing payroll systems.
Aligning HR Roles and Responsibilities
Once you have considered all key HR functions, you then need to make sure all roles and responsibilities within your HR department are clearly defined and aligned with your human resources organizational chart.
The positions you include in your HR organizational chart will, of course, depend on the size of your company. For example, if you are a small company then you may only have one or two professionals responsible for managing all key HR functions. In contrast, if you are a large organization, you are far more likely to have specific individuals responsible for each core area.
Chief Human Resources Officer (CHRO)
The Chief Human Resources Officer (CHRO) is the top management executive in charge of an organization’s employees. They are responsible for setting, enforcing, and evaluating legally compliant human resources policies, procedures, and best practices. The role also involves identifying and implementing long-term strategic talent management goals that promote profit and growth.
- Leading the HR department in the creation of strategies that nurture talent and improve performance
- Consulting on human capital trends and management styles
- Planning talent pipeline requirements in line with business needs
- Defining and monitoring workforce metrics, ROI and KPIs
- Advising HR directors on cross-functional policies and processes
- Facilitating internal communication (vertical and horizontal)
The HR directors are one level below the CHRO on the HR organizational chart. This role is responsible for carrying out HR policies, processes, and procedures. This includes recruiting, retaining, and enhancing employee performance. The HR Director reports to the board and contributes to overall company strategy and policymaking.
- Supervising and coordinating recruitment, hiring, and termination processes
- Researching, developing, and updating policies, procedures, standards, and guidelines
- Communicating and enforcing organizational values
- Managing annual budgets for payroll, professional development, and administration
- Leading new initiatives in management development
- Providing support to HR managers so that they can perform their duties
Human Resources Manager
Also known as an HR Generalist, the Human Resources Manager is primarily responsible for ensuring that all strategies defined by the CHRO and HR Director are effectively implemented and managed. This includes overseeing day-to-day HR activities and ensuring workforce compliance within every area of the HR department. Ultimately, responsible for ensuring the smooth running of all key HR functions.
- Tracking progress towards HR goals and ensuring the company as a whole is working towards annual strategic goals
- Overseeing the day-to-day administration of healthcare programs to include 401k retirement plan, medical/dental/ vision, short-term disability, long-term disability, COBRA, etc.
- Ensuring policies and procedures are regularly updated and in compliance with legal changes
- Optimizing processes and using data and critical thinking to evaluate scalable solutions
Human Resources Coordinator
Finally, the lowest level on an HR organizational chart is the Human Resources Coordinator. Usually considered an entry position, this role provides administrative support to the HR department so that all key functions and programs run smoothly.
- Typing up reports, memos, and general correspondence
- Coordinating procedures and facilitating effective internal communications
- Managing the administration of recruitment campaigns including advertising vacancies, collating applications and data, corresponding with candidates, assisting managers with the shortlisting and selection processes.
- Updating the HR database
- General administration, including processing invoices, scanning, photocopying, filing, updating documents
- Providing general HR support
Making Your Own Human Resources Organizational Chart
Now that we’ve covered all the basics let’s take a look at how you can create your own chart.
The first step is to remember that the format and design of your human resources organizational chart will depend on the size and structure of your HR department. You should therefore consider your HR to employee ratio before creating your chart.
The next step, once you’ve clarified the roles and functions that you will include, is to decide what information you will include in your chart. For example, will you stick to job titles, roles, and responsibilities only, or will you personalize it with individual names, photos, and email addresses?
Once you’ve done that, the next step is to actually create your chart. You have a few options here. For example, you could create your own chart from scratch using software like Word or Excel. However, this requires a degree of design and IT skills, plus data needs to be added and updated manually, which can be tedious and time-consuming.
But, is there an easier way of doing it?
Another option is to use Factorial’s all-in-one software to automatically generate your own human resources organizational chart in seconds. This can be a great way to streamline the process. For example, every time someone joins or leaves your company, the chart will be automatically updated.
Finally, perhaps the easiest solution is to download Factorial’s Free Organizational Chart Templates for PowerPoint & Word. Just fill in the form and we’ll send you an email with your ORG chart freebie!