Evaluating Changes in Organization Structure Using Methods of Mathematical Statistics
To effectively manage an organizational structure it is essential to understand whether the estimates of job levels are well-founded when changing such a structure. One should ensure that there is no “inflation” of job levels, i.e. that the level of a pos
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Abstract. To effectively manage an organizational structure it is essential to understand whether the estimates of job levels are well-founded when changing such a structure. One should ensure that there is no “inflation” of job levels, i.e. that the level of a position in the system of job grades is not unduly overestimated. This research offers methods to assess the significance and appropriateness of changes in distribution of positions by job levels in the organizational structure of an enterprise. To analyze factors that affect qualitative change in an organizational structure, it is proposed to use a combination of mathematical statistics methods, like estimation of arithmetic weighted average, Pearson criterion v2, and qualitative methods of analysis. The proposed method allows assessing in mathematical terms whether the changes in organizational structure that occurred during the researched period are appropriate as well as confirming/disproving the hypothesis of job levels “inflation” in the organization during such a period. Methods used in this research add statistical assessment to the generally accepted approaches to qualitative assessment of validity of changes in an organizational structure. These methods allow setting and controlling the targets of the organizational structure change metrics. Keywords: Chi-square statistic criteria Job evaluation level Job grading system Organizational structure
Job hierarchy Job
1 Introduction As an organization grows and develops, its organizational structure constantly changes [10, 13]. There is a number of triggers for such changes like dynamically changing environment, emergence of new technologies, and digitalization [1–3, 8]. New divisions appear, while some of the old ones are closed. New positions are created in the existing divisions, while functions and subordination of positions can be changed. Simple and algorithmizable activities become automated, and non-core activities become outsourced [12]. This is the reason why the number of low-skilled and medium-skilled positions in the organization may decrease. At the same time, development of new products and implementation of new production and information technologies become more and more complicated. As a result, the organization needs new positions that require high qualification and high degree of responsibility for business results [4]. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 S. I. Ashmarina and V. V. Mantulenko (Eds.): IPM 2020, LNNS 161, pp. 625–632, 2021. https://doi.org/10.1007/978-3-030-60926-9_79
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S. V. Sidorkina
In a naturally developing business there are objective reasons for job levels of the organizational structure to upshift. In other words, the frequency of positions at different levels of the organization shifts upwards. At the same time, there are certain rules regulating the hierarchical structure of positions in an organization (the structure of grades) and the significance of positions in it is a
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