Effects of Personnel Turnover, Employee Qualifications, and Professional Staff Ratios on Administrative Intensity and Overhead

Abstract

This study reports the results of a quantitative analysis of the influence of organizational characteristics on the proportion of administrative personnel (administration intensity) and the relative costs of administrative functions (administrative overhead). A number of propositions linking organization size, resources, personnel turnover, employee qualifications and professional staff ratios to administrative intensity and overhead are put forth. One hundred and thirty school systems serve as the units of analysis. Results show that high personnel turnover raises both administrative intensity and overhead; that large professional staff ratios expand administrative intensity, and that high employee qualifications depress the relative costs of administration.