Organizations need managers so they can function, that much is obvious, but what type of managers? how many? and in which positions? That requires a bit more planning, and that is what a management quota is used for.
It’s a quota previously established by the management of an organization that decides the allocation of managers across the various departments and time-slots.
The specific characteristics of that quota depend on each organization, but companies use historical data of previously observed patterns and trends within the organization to define that quota. In simple words, it’s a limit cap on managers.
Management capacity is not the same as management quota
Management quota and management capacity are different concepts. Management capacity is the process of managing the volume of non-management employees to make sure there are enough specialized employees to fulfill the demands of the organization.
That said, they both depend on each other, the number of managers influences the number of employees and vice versa. That’s why organizations use the relationship between them to manage all their employees.
Management quota parameters
Management quota is designed around different parameters depending on the diverse needs of each organization. However, some parameters are standard enough that they need to be mentioned. These categories are also used for management capacity:
Work skills. Work skills are the specific sets of skills that each manager has, including their level of experience with them, and how those skills relate to their position in the organization. When the manager is assigned to their post, its assumed they will perform within the levels of productivity expected by the management of the organization.
Time slots. Time slots are fixed time intervals. The type of work done in the interval defines the time slot and which activities can be done or need to be done. As such, they are assigned different categories and denominations for easy identification.
Capacity categories. Capacity categories are groups of activities joined together by common work skills, levels, and time slots. This way groups of workers with similar skill sets can be quickly assigned to the different capacity categories as needed.