Evaluating Changes in Organization Structure Using Methods of Mathematical Statistics

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 χ2, 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.