y Span of control refers to the number of

subordinates who can be managed effectively by a superior

The important factors determining span of control are:y Capacity of the superior y Capacity of subordinates y Nature of work y Degree of decentralization y Availability of staff assistance y Communication techniques

y Ability and capacity of each manager may vary in

terms of leadership , communication , decision making , control etc. y An efficient manager can manage more number of subordinates

y An efficient subordinate can function without much

help from the superior y In such cases a large number of subordinates can be managed by a superior

y Similar works performed by subordinates need less

attention by superior

y Higher the degree of centralization , span of control is

narrow y Higher the degree of decentralization , span of control is wider

y Staff experts provide guidance and advises to

subordinates

y Face to face communication consumes more time , so

span of control is narrow y Using electronic devices communication requires less time , so span of control may be wider

Types of span of control:y Narrow span of control y Wide span of control:

Narrow span of control:y The less people under the control of one manager -the

span of control is said to be narrow.

Narrow span of control

Advantages:y Close supervision y Close control y Fast communication between subordinates and

superiors

Disadvantages:y Superiors tend to get too involved in subordinate s

work y Many levels of management y High cost due to many levels y Excessive distance between lowest level and top level

Wide span of control:y The more people under the control of one manager -

the span of control is said to be wider.

Wide span of control

Advantages:y Less layers of management to pass a message through,

so the message reaches more employees faster y Costs less money to run a wider span of control because a business does not need to employ as many managers

Disadvantages:y Requires exceptional quality y Danger of superior s loss of control of managers

y Decentralization means dispersal of decision making

power to the lower level of organization

Factors determining decentralization are:y Size of the operation y High cost of decision y Higher differentiated product lines y Availability of managerial manpower y Top management philosophy y Environmental influences

Size of the operationsy As the size of the organization increases, it is

necessary to divide the large organization into semi autonomous units

High cost of decisiony The more costly actions are taken at higher levels of

management and less costly at the lower levels of management

Higher differentiated product linesy The product lines in a company are very different y Decentralization or divisionalisation becomes very

important

Availability of managerial manpowery Decentralization of authority requires competent

managers. Decentralization is one of the good methods of encouraging managerial development

Top management philosophyy The management philosophy of the top management

determines to a large extend how much authority the managers in the organization are willing to retain or delegate down the line

Environmental influencesy An organization's structure and functioning depends

on its interface with the external environment

Advantages:y Reduction in the burden of chief executive y Diversification of activities y Quick decisions y Development of managerial personnel y Improvement of motivation

Disadvantages:y Inconsistency y Increased administrative expenses y Difficult autonomation y Difficult co ordination y Uncertainties are difficult to deal with

y Delegation is a process followed by managers for

dividing work, entrusting part of it to subordinates and establishing conditions that enable to hold the subordinates accountable for performance

Process of delegation:Entrustment of responsibility 2. Granting of authority 3. Creation of accountability1.

Entrustment of responsibility:y Responsibility is the work of duties assigned to a

person by right of his position in the organization y The superior must determine clearly the task or duty to be assigned to the subordinate y The duty must be expressed either in terms of function or in terms of objectives

Granting of authority:y Authority is the right or power granted to an individual

to make possible the performance of work assigned

Creation of accountability:y Accountability is the obligation to carry out

responsibility an exercise authority in terms of performance standards established y The extend of accountability depends upon the extend of delegation of authority and responsibility

Advantages:y Avoids wastage of time y Avoids over work y Avoids delay y Develops increased sense of responsibility

Disadvantages:y Inadequate planning y Infringement of the principle of unity of command y Lack of effective control mechanism y Defective organization structure &non clarity of

authority responsibility relationship

y MBO is a dynamic system that integrates the

company s need to achieve its goals for profit and growth , with manager s need to contribute & develop himself

MBO Characteristics:y Long range plans and unit plans y Performance review- new job improvement plan y Control information y Key result analysis

Merits:y Emphasis on change y Acceptance of human side of organization y Maximum information generated y Effectiveness emphasis y Situational emphasis

Demerits:y Lack of commitment y Top management not involved y Poor implementation methods y Little coaching or assistance to managers on

procedures involved