#32 How to Build an Organization

When a new organization is being conceptualized, either an individual or individuals have to decide how it is going to be structured.  They must consider all of the functions that are necessary to make the organization viable.  Then they have to decide how to structure each of of those functions (departments).

Decision makers would need to decide what kind of organization they want -- one that operates as a hierarchical top down, command and control organization or a more egalitarian organization -- where all employees can tribute.  They then need to determine a proposed budget for the organization including overhead and the cost of  personnel.  In most governmental institutions the personnel cost, along with benefits and other worker's compensation costs, is usually the largest percentage of their budget.

With that in mind, leaders need to decide what kind of expertise is needed to perform various functions within the defined departments.    They  also need to know about the labor market in their geographical area in order to determine what a fair salary would be for an employee with the requisite knowledge, skills and abilities.

Oftentimes if the "word on the street" is that the organization has a open, entrepreneurial  approach to managing employees the "best and the brightest" will want to join the team.  That is a big help in recruiting, but in any case a plan for recruiting needs to be formulated in order to attract the best talent for the money.  Hiring the right employees can be one of the biggest problems that organizations face.   They can make very hasty decisions, based on some very wrong assumptions.  Time after time, I have seen that happen.  When it does they instantly call human resources and want human resources to fix their problem.  Sometimes that is not a simple as it may seem.

Once upon a time in State Government there was a yearly conference just for human resources and labor relations personnel.  It covered the full gamet of issues regarding employees.  Over the 16-17 years of this very valuable conference, only once did they present a session called  Hiring Hard, Managing Easy.

I was very fortunate because where I worked I had already been following this basic principal for a long time.  And in my mind, it is the only way -- hiring a new employee is not a decision to be made quickly or lightly.  Once you hire them they are yours, unless you spend the time and energy to take some action to reject them.

If you don't hire honest,  talented employees, at all levels, your organization will always have problems and not function as efficiently as it could.  How do you go about Hiring Hard and Managing Easy?

That will be the topic for next time -- stay tuned.