Corporate blog

HOW DOES THE COMPANY'S HORIZONTAL STRUCTURE INFLUENCE PERFORMANCE?

Developing new businesses is among our company's areas of activity. In order to launch these businesses, we must arrange effective work procedures, minimize red tape and enable the team to make innovative and effective decisions.

3 August 2015

Therefore, a horizontal organizational structure, often encountered in consulting companies and based on the principle of reducing hierarchical levels, was an attractive option for us. This approach decreases the number of links between the person who makes a decision and the one who implements it. In addition, this way of interacting promotes an atmosphere of cooperation and saves time.

With an effective personnel management system in place, today, UMG is among the most dynamically developed companies in the SCM Group. UMG manages several business areas, including clay extraction and flux dolomite assets, processing and production of coal combustion products, minerals for agriculture, sale of agricultural products, and a number of other projects. Our staff has grown tenfold in less than three years.

To overcome the challenges during the company's extensive growth, we came up with several solutions.

Working directly with the manager.

Our organization maximizes employee potential by encouraging their drive for creativity and minimizing formalities. Working directly with your manager makes communication faster, authorization simpler and the concept-to-implementation period shorter. This has resulted in an entrepreneurial culture unique to the company.

Training and talent pool.

Facing many unanswered questions, our team was prompted to find an optimal solution. And one was found. We conducted a survey to understand our employees' needs and attitudes toward working at UMG. This revealed the potential of promising employees interested in diverse training and development, and those who wanted to pass on their experience also came forth. Business games, mentoring and participation in new projects were the most suitable format for us. We decided that every manager would have a standby deputy so the company could feel confident in rapidly changing economic circumstances without having to waste a non-renewable resource such as time or lose its current knowledge and its distinctive culture.

Personnel should grow horizontally as well as vertically.

The management company's rapid growth created the challenge of personnel recruitment in order to fill vacancies. This is where we faced difficulties that we had never thought existed. Managers were overloaded. New positions require multi-faceted specialists, and the labor market cannot guarantee their availability. It's also hard to assess the "value" of a new employee. With all this in mind, we allowed personnel to grow and develop not only vertically, but also horizontally. Our employees' work can overlap several, often diverse, areas, and the company encourages independence and initiative. As they become more universal, employees minimize administrative expenses.

Internal communications must be improved constantly.

On-boarding an employee "fresh off the street" raised the matter of regimenting business processes for management control, and difficulties arose in work with regional assets. This made it necessary to formalize the corporate culture. The management company's distance from its production assets underlay the need for a single information space where employees could be introduced to industrial workers, and industrial workers could be familiarized with the structure of the management company and its principles of interaction. This was more proof that videoconferencing is more productive than telephone calls, in that it facilitates communication.

Some matters remain unresolved, but we know that a journey of a thousand miles begins with a single step, especially if the entire team is involved in managing business processes and making effective business decisions.

Source:
Kyivstar Business Hub

Author:
Irina Kharrasova
Human Resources Director