Assessing Your Organizational Structure

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Assessing Your
Organizational
Span of Control
State Classification Office, September 2003
Changes in the
Workforce
 Workers are more independent and
collaborative
 There is a greater focus on individual
worker performance and less on
supervision
 Streamlining in organizations has reduced
the number of supervisors and managers
 Role of supervisors has changed from
“control” to “support”
Changes in
Organizations
High specialization
Cross-functional teams
Rigid departments
Cross-hierarchy teams
Clean chains of
command
Narrow spans of
control
Centralization
Free flow of
information
Wide spans of control
Decentralization
Changes in the State
 In 1995, the Legislature enacted provisions to limit
growth in employment levels
 Although agencies trimmed budgets, many did not
streamline their structures, improve processes or
reduce excessive management
 Texas Government Code 651.004 was enacted and
required agencies to establish goals for achieving a
higher management-to-staff ratio
 78th Legislative Session amended the code to
include a mandated time line for agencies to
achieve a 1:11 management-to-staff ratio
Legislative Timeline
 HB 3442 amends Gov. Code 651.004 and
mandates that state agencies in the
executive branch of government with
100FTEs comply with the 1:11 ratio by
FY 2008.
Implementation Schedule
Minimum Ratio
March 31, 2004
1:8
August 31, 2005
1:9
August 31, 2006
1:10
August 31, 2007
1:11
Span of Control
 Legislative changes in Texas are intended to increase
span of control in agencies
 Span of control refers to the number of subordinates
who report directly to a single manager or supervisor
 High span of control has a direct link to:
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Greater employee empowerment
Faster decision making processes
Improved communications
Greater organizational flexibility
Reduced personnel and overhead costs
Increased delegation resulting in improved job satisfaction
Factors that Influence
Span of Control
 Job complexity
– More complex jobs = more managerial input
 Job similarity
– Similar jobs = more employees per manager
 Geographic proximity of employees
– Dispersed locations = more supervision
 Amount of coordination to complete tasks
– High coordination = more supervision
Factors that Influence
Span of Control
 Employee abilities
– Knowledgeable, trained staff = less supervision
 Employee empowerment
– Employees who are trusted and empowered to make
decisions need less supervision
 Ability of management
– More capable management = more employees per
manager
Tall Hierarchy:
Low Span of Control
Organizational Factors
Supporting Narrow Span of
Control
 High levels of diversity and complexity of work
performed by an organization
 The extent to which coordination and
interdependence is important between employees
and groups
 Large amounts of change in the work environment
 Greater geographic dispersion
 Large administrative burdens
 High employee expectations and needs regarding
development and career counseling.
Flat Hierarchy:
Wide Span of Control
Organizational Factors
Supporting Large Span of
Control
 Experienced people who are well selected
and developed
 Employees who can function with little
supervision and monitor their own
performance
 Job design and tools that give employees
direct performance feedback
 Success of self managed teams
How to Ensure your
Organization is in Compliance
with New Legislation
 Assess your organizational structure
 Ensure that management is actively
involved
 Review agency ratios
 Accurately analyze managerial jobs and
positions
 Develop plans to change ratios if needed
 Report ratios timely to the State Auditor’s
Office
Before You Begin
 Review agency workforce and strategic plans.
 Clarify the purpose, objectives and priorities for
your headquarters or main offices.
 Establish “ground rules” for layers within your
agency.
 Link these rules to your agency’s objectives.
 Gather organizational charts for all programs and
divisions.
 Focusing on cutting to a plan, not a specific
number…but try to stay lean
Where to Start
1. Review organizational charts.
2. Consider using analytical tools.
3. Identify employees who supervise a limited
number of employees (1-3).
4. Identify groups of professional employees
who could work in self-managed teams.
5. Identify “technical” supervisors who could be
reassigned to team leader positions.
1. Review Organizational
Charts
 Count the total number of layers from the
lowest individual contributor to the Executive
Director.
– Individual contributors (do not supervise but may act as team
leader)
– Supervisors (Include first line, second line, etc.)
– Managers (Include first level, second level, etc.)
– Executive or Agency Head
 Target range should be 4-6 layers, smaller
agencies (less than 500 employees) should have
fewer layers.
2. Use Analytical Tools
 Activity analysis
– Can be performed to understand how much time middle
managers actually spend on management and supervisory
activities.
 Decision/responsibility matrices
– Can be developed to understand who is responsible for making
decisions and what positions have overlapping or redundant
responsibilities.
 Conceptual maps
– Indicate what functions and services are helpful in order to
identify duplicate services.
3. Identify
Employees
Who Supervise a Limited Number
of Employees
 Consider these questions?
– Can those employees being supervised be moved under
another supervisor?
– Can the current supervisor be a team leader?
– If that position were to not supervise would it be needed?
– Have you performed a job analysis (activity analysis) on the
supervisory positions?
– What value does this position create? Management and
supervisory positions that do not add value commensurate
with their costs should be eliminated or restructured.
4. Identify Employees who
can Work in Self-Managed
Teams
 Work teams have replaced traditional
management
– Results may include dramatically increasing productivity
– The quality of work life is often enhanced for employees.
 Highly developed teams can control functions
once reserved for management
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Designing work processes
Establishing production schedules
Setting goals and performance measures
Maintaining quality control.
5. Identify “Technical”
Supervisors
Consider these questions:
– Do these employees work in high level technical or very
specialized jobs?
– Does the employee need to write performance evaluations or have
the authority to hire and fire?
– Can the employee oversee work assignments and work more as a
team leader?
– Can supervisory duties be taken from the job without
substantially reducing the employee’s workload?
Before You Restructure
 Remember:
– Management support is critical
– Successful restructuring complements organizational
strategies
– Organizational culture plays a big role
– There are no “quick” fixes
 Restructuring processes should include:
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Project planning
Data collection
Structural analysis
Staffing needs analysis
Span of control analysis
Development of recommendations
Additional Tips
 With regard to spans of control the complexity of the
functions being performed is the primary determinant
of the number of positions that can be effectively
supervised
 Work process reengineering can create radical change
and result in improved performance and reduced cost
 When evaluating organizational structure it is
extremely important to consider all the factors that
affect your organization and to consider what “nonorganizational” changes might be implemented both to
improve operations and to reduce management and
supervisory needs.
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