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Unit 2: Development of Management Theories

supervise an unlimited number of people. The span of control refers to the number of Notes
subordinates a supervisor can supervise effectively. Wide span yields a flat structure
whereas short span results in a tall structure. Graieunas has developed a mathematical
formula to show the numerical limitations of the subordinates, a manager can control. If
an organisation is designed on the above principle, it will look like a pyramid. At the top
of the structure, there is head of the organisation followed by the top executive, executives,
middle managers, junior managers and at the bottom the first line supervisors. Chain of
command and line of communication both flow from the top to the bottom in this structure.
The line of responsibility, however, flows from bottom to top. There is no provision of
upward communication in this system except in relation to the results of task performance.
It can be shown by the following Figure 2.1.
Figure 2.1: Span of Control or Levels of Organisation

Chairman
Authority Top Executive Responsibility

Executives

Middle Managers

Junior Managers
First Line Supervisors

Task Find out the span of control or level of organisation of any Indian company
of your choice.

2.1.4 Principles of Organisations under the Classical Theory

The classical theorists have developed certain principles of organisations for the guidance of
managers and executives and they claim them as fundamental, essential, inevitable and universal.
Though divergence of views exists, there is a considerable degree of unanimity on these principles.
Fayol was the first to give principles of administration. He developed a comprehensive list
of fourteen principles: (i) division of work; (ii) authority and responsibility; (iii) discipline;
(iv) unity of command; (v) unity of direction; (vi) subordination of individual interests to
general interests; (vii) fair remuneration; (xi) equity and a sense of justice; (xii) stability;
(xiii) initiative; and (xiv) teamwork spirit. These principles are more or less have a considerable
degree of unanimity and some of these principles are still applied in organisations.

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