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Key Elements of Organizational Structures (1/4): Span of Control

 


One of the organizational structure decisions to be made regarding human resources is the number of subordinates that one manager can effectively lead – span of control.

What is span of control?

Span of control refers to number of people who are working directly under a single manager. Or, the number of subordinates a manager can effectively supervise who are directly accountable to that manager.

Types of span of control

Span of control is either ‘wide’ or ‘narrow’ depending on how many subordinates a person is responsible for.

  1. Wide span of control. This is when a manager directly responsible for many subordinates. There are many subordinates who are accountable to a manager. The supervisor of Team A has a wide span of control because he is directly responsible for eleven workers. There are fewer layers of management (supervisory) needed in the hierarchy in the firm, hence less managerial positions will help with cost control. One manager is responsible for more staff. There is greater the degree of delegation as there is more trust. Less supervision improves work motivation. However, there is less control over subordinates’ work. Larger teams reporting to one manager tend to suffer from communication problems which may cause tensions and conflicts. Also, fewer managerial positions reduce promotion opportunities.
  2. Narrow span of control. This is when manager has direct responsibility for a few subordinates. There are fewer subordinates who are accountable to a manager. The supervisor of Team B has a narrow span of control because he is directly responsible for two workers. There are more levels of management in the hierarchy in the firm, hence more managerial positions make it more expensive. One manager is responsible for less staff. More supervision may reduce worker motivation. There is better control over subordinates and their work. Smaller teams reporting to one manager make it easier to communicate with and control the team – communication between the different levels of the hierarchy is more effective in terms of speed and accuracy. Smaller teams might also be more productive since there is likely to be better team spirit and cohesiveness. Also, more managerial positions increase promotion opportunities. However, there is less degree of delegation as there is less trust. 


Factors that influence its size

There is no magic number for the ideal span of control. In fact, the degree of control granted to a manager depends on a number of factors that affect the size of the span of control including:

  • Capabilities of a manager. Senior managers who are more knowledgeable, skilled and experienced managers will have a wider span of control. Junior managers will have a narrow span of control.
  • Management style. When a business uses a management style that has greater control over the workforce such as autocratic or paternalistic, then managers will have a narrow span of control. When a business uses a management style that has lesser control over the workforce such as democratic or laissez-faire, then managers will have a wide span of control.
  • Expertise of subordinates. Span of control will be wide when subordinates are more knowledgeable, skilled and experienced. They will require less control as highly capable staff are more likely to work in dynamic teams. Span of control will be narrow when subordinates are less knowledgeable, skilled and experienced. They will require more control and support from the supervisor.
  • Nature of tasks. Span of control varies with the type of work. Complex, urgent and important tasks will require a narrow span of control as communication and deadlines will be more important. Simple, non-urgent and not important tasks will have a wider span of control as it is perfectly fine to have larger teams.
  • Difficulty of tasks. Wide span of control (20 or more employees) can be used when the work that subordinates do is fixed involving simple and repetitive tasks. Narrow span of control (no more than six employees) can be used when the work that subordinates do is varied and complex.
  • Size of the business. Large businesses can afford to employ more managers, so span of control is often narrow. Small businesses that cannot afford to hire many managers will have wider span of control.
  • Organizational culture. Those cultures that require managers to closely monitor and control their subordinates such as China require narrow span of control. While those cultures that require managers to delegate and empower their subordinates such as Sweden require wide span of control.
  • Levels of hierarchy. Managers in companies with tall organizational structures have narrow span of control. Managers in companies with flat organizational structures have wide span of control. Additionally, the higher up a person is in a hierarchy such as Chief Executive Officer (CEO) or Board of Directors (BOD), the wider his span of control tends to be.
  • Type of production method used. Products that require mass production (flow production) will be made using less supervision throughout the production process, therefore the span of control will be wide. Products that require job production will be made using more supervision throughout the production process, therefore the span of control will be narrow.

What’s the ideal size of span of control?

Management consultants have been debating the question of optimal span of control for a long time.

As one manager can effectively manage only a limited number of subordinates under his direct control, the size of span of control varies greatly.

In many cases, span of control should be limited because when one person is directly responsible for the control of too many subordinates, then it will create confusions, delays and dissatisfaction.

Some business management researchers and business management consultants suggest that in most cases the maximum number of subordinates to one manager. should be around five employees.

In short, there is no consensus on the optimal size of span of control as the external and internal business environments continue to evolve. There is no one-size-fits-all answer, and the ideal span of control will vary depending on the specific circumstances.

In essence, the decision is judgmental.