SPAN OF MANAGEMENT
Span of Management
Number of employees reporting to a
supervisor
 Tradition has recommended a span of
management of four to seven subordinates.

Span of Control
Narrow Span of Control
Manager
Wide Span of
Control
Manager
Number of employees
reporting to a
supervisor
Layers of
Management
Tradition has recommended a span of
management of four to seven
Factors Determining Span of Control

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Stability of subordinate’s work
Subordinates perform similar tasks
Subordinates in a single location
Skill of subordinates
Procedures define tasks
Support available for the manager
Minimum time for nonsupervisory tasks
Managers' preferences and skills.
(Harcourt Brace & Company)
The Vertical Dimension of Organization Structure

Span of control – the feature of vertical structure
that outlines:
 The
number of subordinates who report to a manager.
 The number of managers.
 The layers of management within an organization.
Tall Versus Flat Structure

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Tall structure has an overall narrow span of
management and more levels in the hierarchy
Flat structure has a wide span, is horizontally
dispersed, and has fewer hierarchical levels
The trend is toward larger spans of management
The Vertical Dimension of
Organization Structure

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Centralization – the location of decision authority at the
top of the organization hierarchy.
Decentralization – the location of decision authority at
lower levels in the organization.
Formalization – the degree of written documentation that
is used to direct and control employees.
Centralization VS Decentralization
Centralization
Decentralization
Decision authority
located near the top
Decision authority
located lower
organizational
levels
Factors That Influence
Centralization/Decentralization
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Amount of change and uncertainty
Corporate culture
Size of organization
Cost and risk of failure
Efficiency of communication and control systems.
Harcourt Brace & Company.