HR Organization Structure: Roles and Functions

An HR organization chart visually represents the structure of an HR department, detailing roles and reporting relationships. It helps companies of all sizes streamline HR functions, track progress, and identify areas for growth.

By Brad Nakase, Attorney

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Table of Contents

1. What is an HR organization chart?

2. Examples of HR organizational charts

3. How to make an HR organization chart

4. In conclusion

What is an HR organization chart?

The size and structure of businesses vary across hundreds of industries. Whether a company employs ten people or thousands, human resources (HR) is one of the most important departments. But for a team to work as well as it can, there must be a defined structure that allows each member to handle the demands of the company. HR departments may manage that easily with the help of an HR organization chart.

An HR organization chart, commonly referred to as an HR org chart or HR organization chart, is a graphic representation of the internal organization of the HR department. It lists the names of the workers, together with their principal duties and positions, as well as their hierarchical relationships. Organizational charts are frequently utilized both inside and between departments, such as human resources.

An organization chart for human resources serves the objective of providing visual aids for HR and the whole company to better understand the structure of the department. It is obvious who reports to whom, and who is in charge of certain aspects of human resources.

This helps workers understand their part in achieving those goals and makes it easier for company leadership to determine whether strategies have been carried out and objectives are being accomplished. In addition, an HR organization chart shows available positions and any structural gaps.

Both your own chart and a model chart can act as a framework to assist you quickly determine areas for future growth in your HR department.

Examples of HR organizational charts

The structure of your HR hierarchy will change based on how big your company is. As a result, many businesses will take this into account while organizing their department and designing their HR organization chart.

A high employee ratio, or the number of HR employees within the company, may indicate inefficient HR service delivery. Numerous other elements, including as technology, the function of HR, industry, budget and budget control, unionization and organizational size, and collective agreements, can also have an impact on the HR to staff ratio.

All HR-related tasks may be handled by one person in a small or startup company. On the other hand, in a huge organization, every member of the HR team may have a single, crucial responsibility.

Organizational chart for human resources: a small company

Employees: 100 or fewer.

Important roles:

The CEO or, in an alternate scenario, an HR manager or director would be at the top of the chart. This individual would oversee the work of one or two HR personnel, such as a recruiting coordinator and an HR expert. Payroll and other operations could be outsourced.

Organizational chart for human resources: medium-sized company

Employees: 100 to 999.

Important roles:

A midsized company will also have a CEO or vice president of HR in charge of the HR department.

An HR director who answers to the vice president will oversee one or more general HR managers as well as a salary and benefits manager. These HR supervisors would oversee a payroll specialist, an HR specialist, and an HR generalist.

A director of recruitment will also be under the VP of HR’s direction. This individual will oversee multiple coordinators for recruitment.

Organizational chart for human resources: big company

Employees: 1,000 or more

Important roles:

While a big business would probably change the structure and give each HR staffer fewer responsibilities, it would still retain the majority of the jobs seen in a midsized company.

In a larger company, further HR positions could be:

Human resource information specialist (HRIS), chief diversity officer, HR business partner (HRBP), director of training and development (L&D), and chief human resources officer (CHRO).

How to make an HR organization chart

The best method to set up an HR team in a big company is to have distinct divisions, each focused on a different role, as we discussed in the previous section. Within each unit, there should be a group leader and an HR representative in charge of each necessary duty.

Having each person committed to and focused on one specific task is still practical, even in small to medium-sized organizations.

This is a step-by-step guide to build your own organizational chart for human resources.

List the HR departments in your company

The following are a few common HR duties:

Hiring and Recruiting

These workers are principally in charge of recruiting, vetting, and choosing fresh talent for any open positions within the company. They will search for openings, identify them, write job descriptions, make job ads, go through resumes, conduct interviews, make a proposal offer to a few prospects, and handle salary negotiations in addition to developing a strategic recruitment plan for the team.

Within the hiring and recruitment function, typical job titles include:

Hiring Manager
Recruiter
Recruiting coordinator
Sourcers
HR Assistant
Human resource information specialist (HRIS)
Employer branding experts

Learning & Development

In order to satisfy KPIs, the learning and development staff must maximize employee performance through continual training opportunities. Before an employee’s first day on the job, both newly hired candidates and current employees may participate in training. Creating supplementary materials and evaluations, maintaining any online learning platforms, and designing or locating efficient training programs and seminars are among the responsibilities.

Within the learning and development function, typical job titles include:

L&D expert
Training specialist
Trainer
Training coordinator
Head of Training
Training director
HR expert
Resource specialist

HR Generalists

HR generalists are in charge of handling daily duties such as keeping track of and updating databases and records, filing paperwork, placing job ads, setting up interviews, and doing any other relevant work as needed.

Typical job titles in this role consist of:

HR admin
HR generalist
HR coordinator

Human Capital Management (HCM)

All procedures linked to the most effective and efficient management of people inside the company fall under the umbrella of human capital management. Creating and outlining pay packages, evaluating employee-to-staff ratios, managing employee performance, and promoting diversity and inclusivity are among the tasks. Sometimes, maintaining the HR information systems falls under the authority of HCM.

Within the human capital management function, typical job titles include:

Human capital management associate
Human capital management specialist
Human capital management consultant
Diversity officer
Human capital management analyst

Employee Relations

The purpose of employee relations personnel is to oversee communications between employers and their staff. This covers all aspects of the onboarding procedure as well as handling employee conflicts and disciplinary actions. They are also in charge of overseeing their interactions with labor unions, trade groups, and any temporary workers.

In addition to supervising performance management initiatives, an employee relations manager will suggest policy modifications for approval whenever they deem appropriate.

Within the employee relations department, typical job titles include:

Employee specialist
HR representative
Labor relations specialist
Employee relations officer

Pay & Benefits

The purpose of the compensation and benefits function is to manage payroll, stick to budgetary constraints, and provide competitive pay and benefit packages. This covers all compensation, including bonuses, pay, and benefits (such as health insurance or a company car, for example).

Salary packages need to be analyzed in relation to rival businesses and modified accordingly to guarantee that they are appealing and appropriate to both current staff members and prospective hires.

Additionally, it is their duty to make sure that all workers and recent hires are aware of their benefits and compensation package and are able to respond to questions.

Within the compensation and benefits function, typical job titles include:

Payroll and benefits manager
Payroll expert
Compensation analyst for HR
Benefits analyst for HR
Manager of compensation

Safety and Health

The purpose of the health and safety function is to make sure that everyone in the company is aware of and following the most recent health and safety best practices. This covers overseeing any essential employee certifications, fire evacuation protocols, and training requirements.

Within the compensation and benefits function, typical job titles include:

Officer of health and safety
Manager of compliance

Within each core function, there should be a minimum of one manager, who may have a large number of assistants and specialists reporting to them. Bigger companies could also decide to divide up the tasks and teams according to locations.

Gather your HR staff’s information

Adding important information about each member of the HR team to an organization chart is the next stage. This could contain the individual’s name, position, photo, and email address.

Create your chart using an appropriate tool.

To make an HR organization chart, you may use a variety of tools. Canva is a cost-effective online design platform with thousands of designs and graphics, while Microsoft Word provides numerous free templates for charts. Also, there are specialized web tools like Lucidchart that may assist you in creating an HR organization chart.

Make it easily accessible

After your chart is designed, it’s time to publish it so that everyone in the company can see it. If all staff members have access to an online portal, put it in a convenient location and notify all staff members via email of its location. Put it in the welcome packets that new hires get.

Your HR team will be able to better grasp their major tasks and your employees’ needs by using your HR organization chart to help them know exactly who to contact for what.

Consistently update your HR organization chart

An HR organization chart should not be made once and then forgotten. Every time a new hire is hired, a role change occurs within HR, or an employee leaves the company, this document should be updated. To make sure this task gets done, you might wish to designate a specific team member for it.

In conclusion

Your employees will benefit from more openness if your HR structure is well-organized and thorough, and it will also assist you in identifying critical areas for improvement within your current HR department. If you don’t already have one, make one right now by following the simple instructions above.

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HR Organization Structure: Roles and Functions

What is an HR organization chart?

Examples of HR organizational charts

How to make an HR organization chart

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