Page 145 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 8: Span of Management

organisation. The structure would tend to be flat and wide. Presumably the possibility of Notes
communication blockages would be minimized because more people report directly to the top
executive. If the span is small, the structure would be narrow and deep. There would be more
levels in the organisation. More people will have to communicate to the top manager through
intervening layer of executives. The possibility of communication blockages and distortions
would increase.

Example: If there are 256 persons in an organisation and all are reporting to one executive,
there will be one level of management. If it is thought that only four subordinates should
directly report to the chief executive, then the number of management levels will increase to
two as four executives directly report to the top executive and each executive controls 64 persons
as shown in Figure 8.1. This structure is flat as the span of control is very large at the lowest level
and there are only two layers of management. If it is thought that an executive can manage only
4 subordinates effectively, the number of managerial levels will increase to four as shown in
Figure 8.2. This will make the organisation structure look like a tall pyramid.

Wide Span of supervision: When the span of supervision is wider, the number of executives
needed to supervise the workers will be less. This will make the organisation structure wide.
Such a structure would be less expensive because of less overhead costs of supervision. Since the
number of levels is less, there will be better communication between the worker and the
management and better coordination. However, the quality of performance is likely to deteriorate
because one executive cannot effectively supervise a large number of subordinates. He will not
be able to devote sufficient time in directing each and every subordinate.
Figure 8.1 Flat Structure (Span of Control = 64 Workers)

Chief Executive = 1

II Level Executives = 4

64 W 64 W 64 W 64 W Workers = 256

Figure 8.2: Tall Structure (Span of Control = 4 Workers)

Chief Executive = 1

II Level Executives = 4

III Level Executives = 16

IV Level Executives = 64

4 W Workers = 256

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