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Act 2: Setting Up the Kingdom

7. Organizational Structure (Departments & Designations)

Story

Now Sarah models the actual company shape inside the system. She creates top-level departments first, then adds sub-departments where reporting hierarchy needs more detail.

After that, she defines designations so each employee can be mapped to a clear department-designation combination for approvals, analytics, and payroll governance.

Happy Path

Departments are created with valid parent relationships, and designations are added in a predictable naming structure.

Once saved, the hierarchy becomes immediately usable in employee onboarding, approval routing, RBAC scoping, reporting structures, and management dashboards.

  • Create departments with parent, head, cost center, and GL account
  • Create nested department trees where needed
  • Add designations with title, salary band, and description
  • Reuse common designations across multiple departments
  • Configure salary bands and reporting hierarchy levels
  • Create designations and map them to department structures

Failure Modes

FailureWhat the user seesWhat happens next
Duplicate department name within same parent"Already exists under this parent"Use a unique name or different parent
Circular parent referenceValidation rejects circular hierarchySelect a valid parent chain
Parent department not foundParent department not foundSelect valid parent and retry
Delete department with assigned employees"Move employees first"Reassign employees then delete
Delete department with child departments"Delete children first"Delete or move child departments first
Duplicate designation name in scopeValidation rejects duplicate designationUse a unique designation name
Delete designation currently assigned to employees"Reassign employees before deletion"Move employees to another designation first

Edge Cases

ScenarioBehaviorWhy
Department head transferred outPrompt to reassign department headHead reference must stay valid
Department tree depth exceeds configured limitCreation rejected at depth limitPrevents unmanageable hierarchy
Salary band overlaps with another designationSystem warns but allows creationOrganizations may intentionally share ranges

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