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.
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.
If you want to maintain multiple organizations independently, with no dependencies, set up Multi-organization.
"Departments in Zoho People work independently of the organization structure. Departments cannot be tagged to organization structure entities. A department can be assigned to employees directly (via Employee Information in Operations or through Manage Accounts > Users)."
Zoho People’s Organizational Layers and Structure
The organization structure in Zoho People includes the following:
- 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. - 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. - 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.
Salient Features of the Organization Structure
- An organization can create its structure, with one or several elements such as business units, legal entities, divisions, etc.
- Once an organization structure is created, an employee can be tagged in any of these entities within the organization structure.
- The organization tree can be filtered and viewed based on the selected entities.
- Organization files can be shared based on organization structure's entities.
- Specific roles can be tagged to organization structures' entities.
Enable and Set up Organizational Structure
To enable organization structure in Zoho People:
- Navigate to Settings > Manage Accounts > Organization Setup > Organization Structure > Configuration.
- Enable Organization Structure.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.
- Navigate to the Legal Entity tab and define the legal entities of your organization.
- Navigate to the Business Unit tab and define the Business Units of your organization.
- Navigate to the Division tab and define the Divisions of your organization.
- After defining your organization's Legal Entity, Business Unit, Divisions, 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.
Let's say an organization has two legal entities:
- Zylker Technologies
- 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:
- Navigate to Legal entity tab and add Zylker Technologies and Zylker Chemicals as legal entities.
- Navigate to the Business Units tab and add the required Business Units as follows:
- Navigate to Divisions tab and add the Divisions of the organization.
- 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, Telecommunications are business units within Zylker Technoligies. Pharmaceuticals and Speciality Chemicals are corresponding business units within Zylker Chermicals.
The following scenarios can be achieved by using the above mentioned organization structure.
- The structure defined here can be tagged to an Employee.
- The request approver is independent of the employee's company, division or entity.
- 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.
- 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.
Map Legal Entities, Business Unit, and Division to Employees
- Navigate to Operations > Employee Information > Employees tab and click on the employee record to edit information.
- Tag the Legal entity, business unit and division to the employee and save the record.
Click the ellipsis icon in the top-right corner of the employee tab to import employee information in bulk.
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