The number of the management staff is a perimeter that can be expressed in absolute terms, ie to show the relative share of employees, and relatively, ie to show the relative share of management employees in the total number of all employees in an organization.
The number of employees with managerial work (line and functional managers, specialists, technical contractors, and support staff) determines the number of characteristic features of the organizational structure of management and is related to the effectiveness of the management system. Reference: “Organization of the work of the manager”, https://phron.org/organization-of-the-work-of-the-manager/
On the other hand, any change in the organizational structure of management must take into account how it will affect the number of managers.
This determines the exceptional importance of the scientifically based methodology for the norms of the number of management staff.
Often, the ratio between the number of employees employed in management and the number of employees directly in production can serve the purposes of the analysis by comparing the organizational structures of related organizations, but not to determine the required number of management employees.
The introduction of modern equipment, automation of production processes, and the new organization lead to a significant reduction in the number of employees in production. There are different opinions in the literature on this issue that affect the methods of determining the number of managers.
The most widespread are the methods for determining this number by factors. These methods, formulas, and equations establish the relationship between the number of staff grouped by each management function and the individual factors.
Such an approach, especially if the differentiation of each group of workers who perform certain duties concerning the specific management function is deepened, can create an objective basis for determining the number of management workers. But the degree of empiricism in these methods is great.
For this reason, we consider it incorrect to use the qualification “optimal number of management staff”, which is attributed to many methodologies. Without challenging the precision of the approaches and mathematical apparatus used, they can never lead to an optimal solution.
This is possible only on the assumption that all people are equal in opportunities and abilities, discipline and self-discipline, desire to work and full use of working time, and so on. And they are not, which does not mean that we should not strive for a rational number of staff.
Its determination can also be done based on the previously developed functional management structure. It leads to the most detailed breakdown of the management process and its functions into procedures and operations. Their duration is easily measurable over time.
In this way, it is possible to determine the sum of all operations performing the content of the procedures for each specific function of a given complex management function, for which a separate unit is envisaged. Reference: “Management levels and units”, https://www.yahowto.com/management-levels-and-units/
This amount, measured in hours, divided by the number of working days multiplied by 8 (the statutory length of the working day in our country), will give the required number of staff who will be able to implement all management activities under this function.
Of course, some adjustments must be made here as well, as the coefficient of extensive use of working time cannot be practically equal to one, nor can the system of organizational-structural communications be completely correct.
Determining the planned number of key workers
The methods for determining the planned number of workers in the enterprise, necessary for the implementation of the production program, are distinguished by some features that depend on the specifics of labor and production in each sector of the national economy.
The following methods are most often used to determine the required number of key workers: through the complexity of the work; through the norms of production; through the jobs determined by the service norms.
Determining the planned number of key workers through labor intensity
The initial data for determining the planned number of workers through the labor intensity of the work are the production program, the norms of the time, the annual fund of working hours of one worker, the plan for technical and organizational development, etc.
The calculation of the number of main workers working under the following system begins with determining the normative labor intensity of the production program. It can be planned in two ways.
Firstly, the labor intensity of the production program is determined directly: the amount of production of each type is multiplied by the time required during the planning period to produce a unit of production. The
labor intensity of production per unit of output is determined by summing the time norms of all operations.
First, the labor intensity of the comparable production is calculated, then the time costs for the new products, for the increase of the work in progress (if such an increase is planned), for special tools, devices, and others.
As a result of these calculations, the labor intensity of the entire production program is determined. In addition, the normative labor intensity of the comparable production is determined taking into account its forthcoming reduction due to the revision of the time norms planned in the plan for technical and organizational development of the production. Reference: https://mpmu.org/
Relative time consumption (labor intensity)
The relative time consumption (labor intensity) can be used to determine the labor intensity of that part of the production program for which the nomenclature has not yet been specified.
Which is reported per 1000 USD of such or similar production, taking into account the reduction of time costs in connection with the implementation of the measures provided for in the plan for technical and organizational development of production.
The labor intensity arising from the planned changes in the balances of work in progress is determined by multiplying the magnitude of the change and the labor intensity of BGN 1,000 production, adjusted by a coefficient taking into account the degree of readiness of the work in progress.
In many cases the planned labor intensity of the production program is determined in a second way: the reported labor intensity is adjusted with the help of coefficients which take into account the impact of those measures from the plan for technical and organizational development of production, leading to reduction of labor costs.
The total number of main workers
The total number of main workers who work according to labor standards is determined by dividing the labor intensity of the production program by the annual useful (effective) working time of one worker, taking into account the reduction of the normative labor intensity according to the plan for technical and organizational development. and the planned over-fulfillment of labor standards.
The number of main workers by individual professions and qualifications should be determined based on the normative labor intensity of the production program, divided by professions and complexity, and differentiated planned coefficients of implementation of the norms and working time of the workers of the separate professions.
Determining the planned number of main workers through the production rate
The determination of the average list number of workers in the production sections through the production norms is based on the standardized planning tasks and the production norms.
Determining the planned number of the main workers through the jobs, determined by the service norms
Determining the number of key workers who perform work on the management of complex apparatus, machines, and other equipment and control of technological processes of service.
Determining the planned number of auxiliary workers
The number of auxiliary workers can be determined by the following methods: through the labor intensity of the work, through the service norms, through the number of jobs, and the production labor intensity.
The required number of auxiliary workers, whose work is subject to direct regulation, can be determined by the labor intensity of the work.
The calculation is performed according to the formula for determining the number of main workers through the labor intensity of the production. But in this case in the numerator of the formula is placed the complexity of the ancillary work (tools, repairs, etc.).
The planning of the number of auxiliary workers performing works for which service norms have been drawn up is reduced to determining the total number of service objects, taking into account the change of work and the correct establishment of the service norms.
The determination of the planned number of auxiliary workers by the number of jobs is applied when the volume of work and the norms of service cannot be established.
The work of these workers is performed in certain jobs, regardless of its volume, and is related to specific service facilities. These are faucets, adjusters, hygienists, and others.
The planned number of these workers is determined by the product of the number of jobs, the number of shifts, and the coefficient of the average list staff.