Organization Structure | Administrator Guide | Zoho People 5.0 help

Organization Structure

Zoho People's Organization Structure feature enables you to configure and manage your organization's hierarchy, allowing you to maintain data of your multiple companies or legal entities within a single Zoho People organization account. This centralized approach streamlines your HR management across your various entities.

Idea

Enabling organization structure will work well for your organization, if your organization:

  • Have multiple entities within an organization that need to be classified.
  • Have multiple entities within an organization that are dependent.
  • Have cross reporting structures between entities.
  • Needs multiple entities only for payroll processing.
Info
If you want to maintain multiple organizations independently, with no dependencies, set up Multi-organization.

Zoho People’s Organizational Layers and Structure

The organization structure in Zoho People includes the following:
  1. Legal entity
    An independently operated company. It has legal rights and duties related to contracts, agreements, payments, transactions, obligations, penalties and litigations. You can have multiple legal entities in the same Zoho People account. Typically, multiple companies under the same parent umbrella can be created as legal entities. The legal entity is the highest entity in the organization's hierarchy.

  2. Business units
    Various operational units that exist within an organization. You can create multiple business units that operate within a legal entity. The business entity is the second highest in the organization's hierarchy.

  3. Divisions
    Parts of a business unit that are commonly based on location or products. You can create multiple divisions within a business unit. Division is the next level in the organization hierarchy, after business unit.

  4. Departments
    Functional units within an organization can be represented as departments. In your Zoho People account, existing departments can be tagged, or you can create new ones. Departments represent the last level in the organization's hierarchy.
Idea
Salient Features of the Organization Structure
  1. Departments and Divisions can be shared by multiple business units or legal entities.
  2. An organization can create its structure using any of these entities, in any combination, according to their needs. For example, an HR consultancy organization's structure could consist of one legal entity and three departments : HR, IT and Admin.
  3. Once an organization structure is created, an employee can be tagged in any of these entities within the organization structure.
  4. The organization tree can be filtered and viewed based on the selected entities.
  5. Organization files can be shared based on organization structure's entities.
  6. Specific roles can be tagged to organization structures' entities.

Enable and Set up Organizational Structure

To enable organization structure in Zoho People:
  1. Navigate to Settings > Manage Accounts > Organization Setup > Organization Structure > Configuration.

  2. Enable Organization Structure.
    Info
    You can edit the name of the organization structure components as per your organizational preferrence. For example, a Legal entity can be renamed as Legal Business entity or Company.
  3. Navigate to the Legal Entity tab and define the legal entities of your organization.



  4. Navigate to the Business Unit tab and define the Business Units of your organization.



  5. Navigate to the Division tab and define the Divisions of your organization.

  6. Navigate to the Departments tab and add the required Departments of the organization.



  7. After defining your organization's Legal Entity, Business UnitDivisions, and Departments you can organize and structure them within the Manage Structure tab. This allows you to set up a clear hierarchy and efficiently manage the various layers of your organization.


Idea
You can directly map departments created in your organization to business units or tag them under divisions, based on your organizational structure requirements.


Use Case

Let's say an organization has two legal entities:
  1. Zylker Technologies
  2. Zylker Chemicals
You want to manage the details of both companies within a single Zoho People account. Enable the Organization Structure and do the following steps:
  1. Navigate to Legal entity tab and add Zylker Technologies and Zylker Chemicals as legal entities.



  2. Navigate to the Business Units tab and add the required Business Units as follows:



  3. Navigate to Divisions tab and add the Divisions of the organization.



  4. Navigate to the Departments tab and add the required Departments of the organization.



  5. Navigate to the Manage Structure tab and set up your organization hierarchy using the organizational elements you added above.




Based on the above structure, Zylker is the Parent company and Zylker Technologies and Zylker Chemicals are sub companies under it. Cloud services and Speciality Chemicals are business units which are used for internal classification.

The following scenarios can be achieved by using the above mentioned organization structure.
  1. The same Department Human Resources is tagged under Email & Collaboration and Speciality Chemical Divisions. Companies that have common HR teams, can use this structure. You can also add separate HR departments under each division as per your organization structure.
  2. The structure defined here can be tagged to an Employee.
  3. The request approver is independent of the employee's company, division or entity.
  4. There is no restriction in assigning reporting managers based on this structure. An employee belonging to one entity can report to someone of another entity.
  5. This is used to manage the data of multiple sub companies in one account. Filters will be available across the product, which will be useful to generate reports based on this structure.
  1. Navigate to Operations > Employee Information > Employees tab and click on the employee record to edit information.



  2. Tag the Legal entity, business unit and division to the employee and save the record.


Idea
Click the ellipsis icon in the top-right corner of the employee tab to import employee information in bulk.

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