Skip to main content

Key Measures – Organization Structure

Melanie Bell
Updated

This article provides example key measures for monitoring and managing structural efficiency.  These are intended to inform considerations and will likely need to be adapted to meet the specific requirements of your organization.

With Orgvue, you can always get beyond overall, company-wide data to visualize differences across the organization subgroups to identify where key measures are diverging from established targets.

 

Spans of Control 

The business rationale for measuring spans and layers can be found here. 

Number (and proportion) of People Managers

  • The total number of people (or positions) with one or more direct report.  Often expressed as a percentage of the total workforce. 

 

Average Span of Control

  • The mean average of every People Manager’s span of control.

 

One-to-One Reporting Relationships 

  • The number (and/ or percentage) of People Managers with only one direct report.

 

Micro Teams

  • The number (and/ or percentage) of People Managers with X (typically 3) or fewer direct reports. 

 

Off-target Spans

  • The number (and/ or percentage) of People Managers with spans of control outside target ranges

 

Organizational Layers

Total Organizational Layers

  • The total number of hierarchical layers the organization extends to.

 

Positions Beyond Target Layers

  • The number of positions which are located at layers beyond the target number of layers for the organization.

 

Grade Sink

  • The number of people/ positions with senior grades located beyond the top X layers.

 

Grade Reporting Distance

Grade Reporting Distance categorizes reporting relationship according to the difference in grade between a direct report and their manager’s grade.  The business rationale for measuring Grade Reporting Distance can be found here. 

 

Compressed Reporting

  • The number (and/ or percentage) of reporting relationships where a direct report and their manager both have the same grade.

Reversed Reporting 

  • The number (and/ or percentage) of reporting relationships where a direct report’s grade is higher than their manager’s.

Stretched Reporting 

  • The number (and/ or percentage) of reporting relationships where a direct report has a grade which is more than X levels below their manager’s grade.

On-Target Reporting

  • The number (and/ or percentage) of reporting relationships where the direct report’s grade is within X levels of their manager’s grade.

 

Geographic Dispersion

  • The number (and/ or percentage) of employees reporting to a manager in a different geographic location.
  • Business question addressed: Are reporting structures effective for teams requiring hands-on supervisory oversight?

 

See examples of other key measures:

Related Articles:

Comments

0 comments

Please sign in to leave a comment.