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Pretty Bhalla, Lovely Professional University Unit 8: Span of Management

Unit 8: Span of Management Notes

CONTENTS
Objectives
Introduction

8.1 Graicunas’ Theory
8.2 Impact of Span of Management
8.3 Factors Determining Span of Management

8.4 Centralisation and Decentralisation
8.4.1 Centralisation
8.4.2 Decentralisation
8.4.3 Centralised and Decentralised Organisations
8.5 Summary

8.6 Keywords
8.7 Self Assessment
8.8 Review Questions

8.9 Further Readings
Objectives

After studying this unit, you will be able to:
Discuss the Graicunas Theory
Access the impact of span of management
Identify factors determining span of management

Explain the concept of centralisation and decentralisation

Introduction

The term ‘span of management’ is also known as ‘span of control’, ‘span of supervision’ and
‘span of authority’. It represents a numerical limit of ‘subordinates to be supervised and controlled
by a manager. It is an important principle of sound organisation. This principle is based on the
theory of relationships propounded by V.A. Graicunas, a French management consultant.
Graicunas analyzed superior-subordinate relationship and developed a mathematical formula
based on the geometric increase in complexities of managing as the number of subordinates
increases.

8.1 Graicunas’ Theory

Graicunas showed mathematically that a number of direct, group and cross relationships exist
between a manager and his subordinates. The number of these relationships increase ith the
increase in the number of the subordinates. He said that an executive having four subordinates

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