Implementing Global HR: From Enterprise Model to Live Workforce · Module 3 · Enterprise Structures and the Global Model
Three structures, not one
Lesson 22 of 175 · 5 min
Here is how this usually starts: the client hands you an org chart and says build this. That org chart is one of three structures, and it is usually the least important one for what you are about to configure. The legal structure. Registered entities, who legally employs whom, and what each entity is obliged to report and to which authority. This is fixed by law — you do not design it, you discover it from the client's legal or company secretarial function and then model it faithfully. The management structure. Who reports to whom, how the business is actually run — the org chart they handed you. Its defining property is that it changes constantly: divisions merge, functions centralise and decentralise again, a new chief executive arrives and redraws it inside six months. You model it with divisions, departments, manager hierarchies and trees — objects designed to change. The…
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