Technical Journal, Vol. 9 No. 2, 2015.
Review article
Quantitative methods in the designs of organizations: a model and a real world application
Olusegun Gabriel Akanbi
Salami Olasunkanmi Ismaila
orcid.org/0000-0002-9875-8594
; Federal University of Agriculture, Abeokuta
J. G. Awodol
Abstract
A major problem in organizational design is the problem of determining the optimum number of personnel required. Public Service organizations in developing countries and service providers are particularly faced with this challenge. With employment not based on organization’s requirement, overstaffing results. In this study, the structure of a publicly owned production organization was redesigned, using human utilization model to optimize its labour requirement. Using Work Sampling Method, annual work content and optimal numbers of employees were determined at the operational levels. Human interaction dynamic parameters were determined for three management levels and used to obtain the optimal spans of control for the management positions. Human utilization factors and annual costs of labour were computed for the existing and the redesigned structures. The results show that the human utilization factor of the company could be increased from 0.4787 to 0.8063 and savings of N8, 018, 544 made annually. It can be concluded that by using quantitative approach to organizational design, significant savings can be made. Wastages can be reduced and productivity improvement results.
Keywords
Design; Optimum; Organization; Personnel; Public service; Quantitative
Hrčak ID:
140744
URI
Publication date:
15.6.2015.
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