Frequently Asked Questions

Q. Is hiring talented people the most important thing an executive can do to ensure that an organization is operating at its optimum level?

A. That is a common perception. However, even the best and brightest employees will be prevented from doing their best work if the organization is poorly designed. Poor organization design is a leading cause of low employee morale and productivity.

Q. What are the warning signs that a corporation has organization design problems?

A. There are three main indicators that organization design can be improved. The first is high employee dissatisfaction. This is made apparent by high employee turnover, particularly of good employees, and low productivity. Second, there will be increased complaints from customers because employees are unable to meet objectives. Finally, customer unhappiness takes a toll on an organization’s bottom line and executives are forced to confront a flagging financial performance.

Q. If these executives asked Capelle for help, what would you do for them?

A. We take a research-based approach to analysing how the work is being done. Using employee surveys and interviews - and our database of research on more than 22,000 employee positions - we can determine how the design of the organization can be improved. We offer consulting and implementation on how to: improve the alignment of managers and employee positions; clarify accountabilities and authorities; better match people to positions; and ensure that each position is focusing on the most appropriate tasks. The end result is a well-aligned, flexible and productive organization that is able to meet the demands of a shifting market place.

Research consistently shows that organizations with optimal organization design have better employee satisfaction, increased customer satisfaction, and improved financial performance.

Q. What is the most important factor in organization design?

A. Without a doubt, it is the manager – direct report relationship. We have found that of all the hundreds of organization design factors, it is that one factor by itself that can be related to outcome measures, like financial performance, employee satisfaction and customer satisfaction.

The key is that every employee should have a manager who is exactly one layer above, both in terms of the work that the manager does and their capability to work at this layer.

It is surprising how often that isn’t the case. In about 38% of cases, we find the manager operating in the same layer as the direct report. We call this compression, and it results in the manager micromanaging the direct report. The result is that the direct report is completely shadowed by the manager and is not able to use his or her full capability. Not surprisingly, the direct report becomes frustrated. It is also a huge waste of money.

The other problem occurs when a manager and direct report are more than one layer apart. We call this a gap, and it results in the lack of clear direction, and frustration for both the manager and the direct report employee. This situation occurs in about 13% of cases.

Q. How can you measure a particular position or role subjectively?

A. Traditionally, it has been very difficult to measure a person’s job. However, we use a scientifically objective method for measuring the level of work of any role. It is called time-span measurement or analysis. The longer the time span of a task, the higher the level of work.

To use Sales as an example, lower level positions involve the daily activities of customer service. But higher level positions involve long-term projects and outcomes, such as developing new markets and launching new products.

By objectively analysing the time span of the work for various levels of positions within a corporation, we can determine how many layers an organization should have, and place every position in the correct layer. A complex, multi-national organization may have as many as eight layers; a smaller company may have as few as two.

Q. How do you match the right people to right positions to get optimal employee satisfaction and productivity?

A. It is important that an individual have the skills and knowledge to do the work and value the work sufficiently to fully apply themselves to achieving the goals of the position. In addition, the employer needs to take into account that each layer of work demands different mental processing capability. For example, a front line worker, such as a sales clerk, requires the judgment necessary to follow procedures and trouble-shoot when obstacles get in the way of successfully completing work within procedures. Professional level positions require people who can dig beneath the surface, do diagnostic work, and handle tasks with longer target completion times.

Matching the person’s capabilities to the job ensures greater job satisfaction and productivity. Poorly matched employees are likely to be frustrated and are more likely to be less productive.

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