ORGANIZATION LEVELS AND THE SPAN OF

MANAGEMENT

Organization levels are different levels (position of varying authority and

responsibility in an organization. For example board of Governors form a level,
managing directors form another level, department form another level. The span of
management is the number of persons a manager can effectively supervise. As humans
there is a limit to the no. of people managers can effectively supervise. Thus levels in
organization become essential.

ORGANIZATION STRUCTURES BASED ON SPAN WIDTH

Based on the no. of people working directly under a manager the

organization structure may be of two types – Narrow span type & Broad span type.

 Narrow Span type

In narrow span type the no. of persons a manger has to supervise is very
limited. This type may be necessary where close control is required. This type of
structure can be represented by the following figure.

The major advantages and disadvantages of this structure are listed ahead.

Advantages

1. Close supervision.
2. Close control.
3. Fast communication between subordinates and superiors.
 Disadvantages

1. Superiors get too involved in the subordinates work. This makes it difficult for
the worker to work freely.
2. Complications due to many levels.
3. High costs due to larger no. of levels.
4. Excessive distance between lowest level and top level.

 Wide Span

In wide span structure there are many subordinates a manager has to supervise.
This is used in organizations where sufficient training is given to the subordinates. The
structure can be represented by the following figure.

The major advantages and disadvantages are listed below

Advantages

1. Superiors are forced to delegate.

2. Clear policies must be made.
3. Subordinates must be carefully selected.

Disadvantages

1. Tendency to overload managers who become decision bottlenecks.

2. Danger of superiors’ loss of control.
3. Requires exceptional quality of managers.
Problems with Organizational levels

It is seen that for close control larger number of level serve the organization best. But
it is not desirable to have a large no. of levels due to a no. of reasons. Firstly, it is
expensive. As the no. of levels increases the no. of managers increase. Supporting staffs
are also required which further increases the cost. The facilities required for these
employees also add to the cost. This cost is generally referred as overhead or burden.
This is desirable to be reduced by the organization.

Increase in organizational levels also complicates communication. The objectives

may be made clear at the top level. But as the information flows down misinterpretation
and deletions make the objectives unclear at the lower level. In other words the
organizational levels act as filters of information.

Another issue with larger no. of organizational levels is that it complicates planning
and control. A clear plan loses clarity and coordination as it moves down the
organizational structure. This is mainly because it gets subdivided at lower levels. Since
the distance between the top and bottom levels increases the control also becomes
difficult.

Operational Management Position: A Situational Approach

Principle of span of management states that there is a limit to the no. of subordinates
a manager can effectively supervise, but the actual number will depend on the impact of
underlying factors. This says that the number of subordinates that can be effectively
supervised depends on the situation.

In this approach instead of going for a numerical limit, the causes for reducing the
number of subordinates is found. In other words, what actually consumes the time of the
superiors in the interpersonal relations with the subordinates is found. This helps in
estimating the effective span. It also helps in finding out ways to improve the effective
span.

Factors Determining Effective Span

The effective span depends on a number of factors. One of which is the personal
capabilities which includes comprehending quickly, getting along with people and
commanding loyalty and respect. The other factors influencing effective span are
discussed ahead.
 Training :
Effective span depends on the training that was given to the subordinates. If
sufficient training was given, the effective span would be larger. With lack of training
close control is essential which reduces the effective span.

 Clarity of authority delegation

If there is clarity of authority control will be easier. Thus clear authority
delegation increases the effective span.

 Clarity of Plans for Operations

Clarity of plans made supervising easy which increases effective span.

 Standards and Verifiable Nature of Objectives

When the product is standardized, it becomes easy for verification and people
who have joined newly. Thus standardized products allow to have a larger span of
management.

 Changes in Internal and External Environments

If the factors (both internal & external) change favorably the span can be
increased. Usually fast changes in the environments make supervision and control
difficult. This decreases the effective span.

 Appropriateness of Communication

Appropriate communication including oral and written helps to have clarity of

objectives and plans. Thus the effective span can be improved.

 Effectiveness of superior-subordinate interaction

Better interaction between superior helps in increasing the effective span of

management.

 Effectiveness of Meetings

Effective meetings help in having proper reviews, having better communication

of plans etc. This helps to improve span of management.

 Complexity of Tasks
 When the tasks are simple it becomes easy for managers to control a larger
number of subordinates. Thus the effective span decreases with increase in complexity of
tasks.

 Competency and Maturity of subordinates

Better competent managers can manage a larger number of people. This

improves the effective span. Mature subordinates need lesser help from the superiors.
This further improves span.

Need For Balance

In preceding sections we have seen that there is a limitation to the span of

management. So it is necessary to have different levels for better coordination. But we
cannot increase the number of levels to a larger extend, to have better supervision,
because of the reasons mentioned earlier. So we should have a balance between the
expenditure due to levels and closeness of supervision. So a rational no. of levels &
organizational structure must be selected.

References

1. Essentials of management - Koontz & Weihrich