Span of management&

Determinants of span of management

DefinitionSpan of control, is a very important concept of

organizing function of management. It refers to the number of subordinates that can be handled effectively by a superior in an organization.

Span of control or span of management is a dimension of organizational design measured by the number of subordinates that report directly to a given manager.

 The term “span of management” is also known as “span of control,” “span of supervision” & “span of authority”. It represents a numerical limit of subordinates to be supervised & controlled by a manager.

GRAICUNAS’ THEORY

It is an important principle of sound organization. This principle is based on the theory of relationships. A French management consultant. Graicunas’ analyzed superior-subordinate relationship & developed a mathematical formula based on the geometric increase in complexities of managing as the number of subordinates increases.

Graicunas showed mathematically that a number of direct, group & cross relationships exist between a manager & his subordinates. The number of these relationships increases with the increase in the number of the subordinates. He said that an executive having 4 subordinates under him is required to deal with

4 direct single relationships 12 cross relationships 28 group relationships

In all 44 relationships. He derived these on the basis if the following formulae:

No. of direct relationships = n No. of cross relationships = n [n-1] No. of group relationship = n [2^(n-1)-1]  Total no. of relationships =n[2^(n)/2+ (n-1)] or n[2^(n-

1)+n-1] Where the n represents the number of subordinates.

Role of Span Management

Organizing the Business EnterpriseEffective communication between different

levels of management.Effective control over working.

Span of management is generally categorized under two heads- Narrow span Wide span.

Matrix spanLarge or big organizations have developed a new pattern of organizational structure to meet their requirements.

TypesNarrow Span of management means a single

manager or supervisor oversees few subordinates. This gives rise to a tall organizational structure.

While, a wide span of management means a single manager or supervisor oversees a large number of subordinates. This gives rise to a flat organizational structure.

There is an inverse relation between the span of management and the number of hierarchical levels in an organization, i.e., narrow the span of management , greater the number of levels in an organization.

Contemporary Landscape Services, Inc.President/OwnerMark Ferguson

Retail ShopManager

NurseryManager

LandscapeOperations

Manager

Buyer Office Manager Buyer Supervisor Residential

ManagerCommercial

Manager

6 - 6 - 88

Flat Organizational Structure --Vertical Structure.Characteristic of decentralized companies with relatively few layers of management and relatively wide spans of control

Typical Law Firm

Chief Partner

Partners

Associates

Relatively wide span of control

5 - 5 - 99

Tall Organizational Structure -VerticalCharacteristic of centralized companies with multiple layers of management and relatively narrow spans of control

United States ArmyUnited States ArmyGeneralGeneral

ColonelsColonels

MajorsMajors

Captains & Captains & LieutenantsLieutenants

Warrant OfficersWarrant Officers

SergeantsSergeants

CorporalsCorporals

PrivatesPrivates5 - 5 - 1010

Relatively narrow span of control.

At lower levels, where tasks are similar and simpler, span of control widens.

Matrix OrganizationOrganizational structure in which teams are formed and team members report to two or more managers

A matrix is a highly flexible form that is readily adaptable to changing circumstances.

Matrix structures rely heavily on committee and team authority.

Some companies use the matrix organization as a temporary measure to complete a specific project. The end of the project usually means the end of the matrix.

(Dean)

(Director)

Employee

Determinants of span managementMissionMissionPurposePurposeStrategy Strategy Size, technology, and changes in environmental Size, technology, and changes in environmental

circumstances also influence structure.circumstances also influence structure.

Although all organizations have the same basic elements, each develops the structure that contributes to the most efficient operations.

Characteristics of large organizations:

•More specialization

•More vertical levels

•More rules and regulations

Characteristics of large organizations:

•More specialization

•More vertical levels

•More rules and regulations

Size

How the size of an organization affects its structure? As an organization grows larger, it becomes more mechanistic.

Technology

How an organization transfers its inputs into outputs.

Characteristics of routines (standardized or customized) in activities:

• Routine technologies are associated with tall, departmentalized structures and formalization in organizations.

• Routine technologies lead to centralization when formalization is low.

• Non routine technologies are associated with delegated decision authority.

Characteristics of routines (standardized or customized) in activities:

• Routine technologies are associated with tall, departmentalized structures and formalization in organizations.

• Routine technologies lead to centralization when formalization is low.

• Non routine technologies are associated with delegated decision authority.

Key Dimensions-

• Capacity: the degree to which an environment can support growth.

• Volatility: the degree of instability in the environment.

• Complexity: the degree of heterogeneity and concentration among environmental elements.

Key Dimensions-

• Capacity: the degree to which an environment can support growth.

• Volatility: the degree of instability in the environment.

• Complexity: the degree of heterogeneity and concentration among environmental elements.

Environment

Institutions or forces outside the organization that potentially affect the organization’s performance.

Associated with

18

ITC

FMCG: Cigarettes

Other FMCGHotels

Agro Business

Leaf TobaccoAgro

Commodities

Paperboard

Paper &

Packaging

19

Strategy of Organisation to manage diversity of Portfolio

Formal 3-tiered governance structure: Board of Directors :

Comprising executive (4) and non-executive directors (11) Strategic supervision

Corporate Management Committee : Comprising executive directors and senior managers Strategic management

Divisional Chief Executive & Divisional Management Committee : Executive management

HERO HONDA’S Span

HERO HONDA-cont.

Span of Control of

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