EXAMPLE 11.1 A Space Model

Allocation of space or other resource within a business organization is often done using quantitative methods. Characteristics for a subunit of the organization are determined, and then a mathematical formula is used to decide the required needs.

A university has used this approach to determine office space needs in square feet (ft²) for each department.¹ The formula allocates 210 ft² for the department head (HEAD), 160 ft² for each faculty member (FAC), 160 ft² for each manager (MGR), 150 ft² for each administrator and lecturer (LECT), 65 ft² for each postdoctorate and graduate assistant (GRAD), and 120 ft² for each clerical and service worker (CLSV). These allocations were not obtained through multiple linear regression but rather determined by a university committee using information on the numbers of each employee type and space availability in the buildings on campus.