MGIC - Organizational Structure

Organizational Structure

Purpose

The purpose of this policy is to define how employees engaged through the Maryland Global Initiatives Corporation’s (MGIC) Employer of Record (EOR) service providers are integrated within the organizational structure of the Requesting Unit to which the employee is assigned. This policy establishes clear expectations for reporting lines, accountability, management oversight, and the division of responsibilities between the EOR, MGIC, and the Requesting Units of the University of Maryland, Baltimore (UMB) and of Affiliate Entities seeking to hire employees through MGIC. It ensures that all employees align with the institution’s operational framework and performance standards.

Background

UMB and Affiliate Entities may utilize MGIC and its EOR services to support global mobility, operational flexibility, and compliance with local labor regulations in various jurisdictions. Although the EOR holds responsibility for employment contracts, statutory obligations, and payroll compliance, the responsibility for day-to-day operational direction and supervisory control lies with the Institution using MGIC services. To maintain consistency in governance, performance expectations, and organizational effectiveness, it is essential that roles, reporting relationships, and supervisory responsibilities for MGIC employees be clearly defined within departmental organizational structures.

The International Operations (IO) division of UMB’s Administration and Finance department administers the MGIC mechanism and facilitates awareness of and compliance with MGIC policies.

Policy Statement

1. Employees engaged through MGIC should be integrated into the respective Requesting Unit’s organizational structure. Reporting lines for these employees should be defined within the organization chart, providing transparency and supporting effective management and oversight.
2. The Requesting Unit retains full responsibility for setting objectives, monitoring performance, conducting evaluations, and providing feedback to ensure alignment with organizational goals and quality standards, and to comply with their respective institution’s applicable Human Resources (HR) policies and practices.
3. Requesting Units must adhere to applicable internal policies, operational standards, and performance management requirements to comply with the terms of MGIC’s EOR service agreements, which limit liability to MGIC, UMB and Affiliate Entities, and MGIC employees.

Scope

This policy applies to all Requesting Units utilizing MGIC for international hiring or workforce deployment, and to all employees engaged through MGIC regardless of role, location, or duration of assignment. 

Responsibilities

1. IO division staff: Maintain current and accurate MGIC policies. Manage contractual engagement of EOR service providers and facilitate collaboration between the EOR, MGIC employees, and Requesting Units to support well-functioning organizational structures.
2. Requesting Units: Establish organizational structures, reporting lines, and supervisory and performance management processes that support employee success and institutional goals.

Procedures

See MGIC Standard Operating Procedures

Documentation Required

• Organization Charts

References

• MGIC Global HR Handbook