Chapter 7 Recap

Identify and Explain 5 features of an organizational structure.

1. Span of Control:

The span of control refers to the number of subordinates working directly under a manager or reporting
to a manager. For example, in an organizational chart there are four subordinates working under the
supervisor so the span of control is 4. There are two types of spans of control: wide and narrow.

A wide span of control would indicate that a greater number of subordinates are working under a single
manager. A wide structure would have lesser levels of hierarchy, a short chain of command and wide
span of control.

The advantages of this would be:

 Greater decision making authority for subordinates

 May improve job satisfaction (delegation)
 Better communication

While the disadvantages are that:

 Costs are likely to be involved in supervision

 Due to the great number of subordinates managers may lose control of them
 Subordinates may make errors if poorly trained

A narrow span of control would indicate that there are lesser number of subordinates working directly
under a manager. Quite a few business theorists suggest that a number of 3-6 subordinates can be
considered as narrow. The advantages for this are:

 Firm, tight control and supervision

 Better coordination of subordinates activities
 Better communication between manager and subordinate

However since the chain of command is long, there are certain disadvantages like:

 Communication problems may occur through the many levels of hierarchy since the message
may become distorted
 Being beaurocratic, there’s little opportunity for delegation
 2. Delayering:

This refers to removal of the middle management layer in order to flatten the organizational structure. It
is also called downsizing. In the 1990’s many business moved from tall (hierarchical, functional and
beaurocratic) structures to flatter/wide structures through the process of delayering. Delayering has
many advantages like:

 Leads to better communication

 Democratic approach
 More delegation opportunities

3. Delegation:

This refers to giving authority for certain tasks to employees further down the hierarchy. However, the
final responsibility remains with the manager. More delegation can be useful because:

 It helps the top managers to be relieved from some tasks and be able to focus on more
important, strategic tasks
 It will provide motivation to the subordinates since they feel trusted in the organization
 Delegation acts as a training for the subordinates so that they can get a promotion in the future

However,

 If the is ambiguity about the delegated task, or training isn’t well provided or authority is
insufficiently transferred, delegation is a futile attempt.
 If the work isn’t conducted properly then the manager is held accountable, hence, the managers
may delegate easy/boring work which may instead demotivate the employee.

4. Chain of command:

This refers to the structure in the organization which allows instructions/authority to be passed down
from senior management to the lower levels of management. The longer the chain of command will be,
the taller will be the organizational structure and the narrower span of control. When the chain of
command is short, the organization will have wider span of control. The claimed advantages of short
chain of command include:

 Communication is quicker and more accurate

 Top managers are less remote from the lower levels of hierarchy
 Wider spans of control entail that each manager is responsible for a greater number of
subordinates which encourages them to delegate more

However, wider span of control could entail:

  Due to the great number of subordinates managers may lose control of them
 Subordinates may make errors if poorly trained

5. Responsibility:

This means being held accountable or being required to justify an action. For example, the HR Manager
is responsible for employing workers. Managers who are responsible for a department may b e asked to
justify their poor performance in front of the Board of Directors.