[yodon]

If you mean the equation measures your boss's cognitive load, then yes. If you mean that it measures your cognitive load resulting from the organization above you, I don't think that's correct except in the most pathologically dysfunctional of organizations.

As a manager looking down in the organization, you are responsible for the relationships between your reports. As an individual looking up the organization, you are responsible for your own relationships with people but you aren't responsible for their relationships with others (and even in a mildly dysfunctional organization where you need to worry about your boss's relationship with their peers, that still only adds an O(n) term because you only care about your boss's relationships not each of your boss's peer's relationships).