Organizational Structure

Introduction to the Organizational Structure in Capex Management

The Organizational Structure in Capex Management defines the hierarchy of an organization, playing a critical role in managing user permissions and project requests. This structure ensures that permissions and access control are efficiently managed at different levels of the organization.

While the structure can be tailored in some areas, the Group and Division levels are fixed and cannot be altered. These represent the topmost level of the hierarchy. Below the Group/Division level, organizations have the flexibility to define multiple levels of middle nodes, creating a structure that suits their operational model. Permissions flow downward from higher levels to lower levels, making access control simple and efficient.

Structure Overview

The organizational structure follows a tree-like hierarchy, where the Group and Division levels are at the top and are fixed. Below these levels, multiple middle-level nodes can be defined, followed by the Production Unit at the lowest level, where Capex requests and projects are managed.

Fixed Levels

1. Group/Division (Highest Level):
   The top level of the organizational hierarchy, referred to as both Group and Division, represents the overall organization. Permissions granted at this level automatically give access to all subordinate levels.

   • Example: GlobalTech Inc. (Group/Division)

Customizable Levels

2. Middle-Level Nodes:
   These represent intermediate organizational levels, and there can be multiple layers of these nodes, depending on how complex the organization is. Each middle-level node can represent business units, regions, departments, or any logical segment of the company. Permissions at any middle-level node cascade downwards to the nodes below it.

   • Example:
     GlobalTech Inc. (Group/Division)
     └ Europe Region
     └ Germany Business Unit
     └ Berlin Office

     In this example, Germany Business Unit is a middle-level node under Europe Region, and Berlin Office is a lower-level node under Germany Business Unit. A user with access to Europe Region will automatically have access to Germany Business Unit and Berlin Office.

3. Production Unit (Lowest Level):
   The Production Unit is the most granular level of the hierarchy. This level represents individual operational units, such as a factory, plant, office, or department, where Capex projects are created and managed. Users with access at this level only have visibility into the specific production units they are assigned to.

   • Example: Berlin Office → Manufacturing Plant, Research Lab

Multiple Middle Levels in the Organizational Structure

Organizations can define multiple layers of middle-level nodes to suit their specific operational and reporting structures. These middle levels provide flexibility, allowing for complex hierarchies that reflect how decisions and operations are structured within the company.

Example 1: Regional and Country-Based Hierarchy

A multinational corporation may organize its hierarchy by region, followed by country, then individual sites or production units:

• Group/Division: GlobalTech Inc.

• Middle-Level Node 1: Europe Region

  • Middle-Level Node 2: Western Europe

    • Middle-Level Node 3: Germany

      • Production Units: Berlin Facility, Munich Office

In this example, the organization uses three middle-level nodes (Europe Region, Western Europe, and Germany) before reaching the production units. Permissions granted at the Western Europe node will automatically cascade down to all countries and production units under that node.

Example 2: Business Unit and Department Structure

A large company with several product lines and departments may use a hierarchy based on business units, departments, and teams:

• Group/Division: Acme Corp.

• Middle-Level Node 1: Consumer Products Division

  • Middle-Level Node 2: Electronics Business Unit

    • Middle-Level Node 3: Research & Development Department

      • Production Units: R&D Team 1, R&D Team 2

Here, Acme Corp. organizes its structure by first defining the Consumer Products Division, then refining it further into the Electronics Business Unit, which is split into departments like Research & Development. Each department contains multiple production units (teams) working on specific projects. Permissions at the Electronics Business Unit level will include access to all subordinate departments and teams.

Permissions and Access Control

The hierarchical structure ensures that permissions are inherited from higher levels. A user with access to a Group/Division or higher-level node will automatically have access to all nodes and production units below that level. This makes permission management more efficient, as higher-level managers can oversee all activities in their branch of the organization, while employees at lower levels are restricted to their specific areas of responsibility.

Example:

• If a user has permissions at the Europe Region node, they will automatically have access to:

  • All countries under Europe (e.g., Germany, France).

  • All production units under those countries (e.g., Berlin Facility, Paris Office).

In contrast, a user with permissions at the Germany node will only have access to German production units, such as the Berlin Facility.

Customizing the Hierarchy

The Group/Division level is fixed, but organizations have the flexibility to define multiple middle levels and production units based on their operational needs. Whether your organization operates across multiple regions, departments, or product lines, Capex Management allows you to create a hierarchy that reflects your real-world structure.

An example of an organizational structure that is organized by geographical areas.