Question

Assume you have been asked to calculate the ratio of staff employees to production employees in two organizations – one in a simple, stable environment and one in a complex, shifting environment. How would you expect these ratios to differ? Why?

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Answer 1

In a simple environment, the number of production employees will be very high in comparison to the number of staff employees. This is due to the high involvement and multi-tasking of top management i.e. the owners and directors.

In a stable environment, the proportion of production employees may be marginally higher than the number of staff employees. This is due to standardized processes and workflow optimization. Also demand-supply is streamlined, therefore there is less pressure on the production line.

In a complex environment, the proportion of staff employees will be equal to or higher than number of production employees. This is since, the organization is involved in complex processes and/or businesses. Such conditions demand for more personnel to perform additional duties of management and control. For example, more number of marketing and sales professionals, R & D experts and staff, Top management, Finance auditors, etc.