Span of management

&
Determinants of span of
management
Definition
Span 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 Enterprise

Effective communication between different levels of
management.
Effective control over working.
Span of management is generally
categorized under two heads-
 Narrow span
Wide span.

Matrix span
Large or big organizations have developed a new
pattern of organizational structure to meet their
requirements.
Types
Narrow 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/Owner
Mark Ferguson

Landscape
Retail Shop Nursery
Operations
Manager Manager
Manager

Office Residential Commercial

Buyer Buyer Supervisor
Manager Manager Manager

6-8
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

5-9
 United States Army
General
Tall Organizational
Colonels
Structure -Vertical
Characteristic of Majors
centralized companies with
multiple layers of Captains &
management and relatively Lieutenants
narrow spans of control Warrant Officers

Relatively narrow span of

control.
Sergeants

At lower levels, where tasks are

similar and simpler, span of Corporals
control widens.
Privates
5 - 10
 Matrix Organization
Organizational 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.
 (Director)

(Dean) Employee
Determinants of span management
Mission
Purpose
Strategy
Size, technology, and changes in environmental
circumstances also influence structure.

Although all organizations have the same

basic elements, each develops the
structure that contributes to the most
efficient operations.
Size
How the size of an organization affects its structure?
As an organization grows larger, it becomes more
mechanistic.

Characteristics
Characteristicsofoflarge
largeorganizations:
organizations:
• •More
Morespecialization
specialization
• •More
Morevertical
verticallevels
levels
• •More
Morerules
rulesand
andregulations
regulations
Technology
How an organization transfers its
inputs into outputs.

Characteristics
Characteristicsofofroutines
routines(standardized
(standardizedororcustomized)
customized)inin
activities:
activities:
• •Routine
Routine technologies
technologies are are associated
associated with
with tall,
tall,
departmentalized
departmentalized structures
structures and
and formalization
formalization inin
organizations.
organizations.
• •Routine technologies lead to centralization when
Routine technologies lead to centralization when
formalization
formalizationisislow.
low.
• •Non routine technologies are associated with delegated
Non routine technologies are associated with delegated
decision authority. .
decisionauthority
Environment
Institutions or forces outside the organization that
potentially affect the organization’s performance.

Key
KeyDimensions-
Dimensions-
• • Capacity:
Capacity:the
thedegree
degreetotowhich
whichan
anenvironment
environmentcan
cansupport
support
growth.
growth.
• • Volatility:
Volatility:the
thedegree
degreeofofinstability
instabilityininthe
theenvironment.
environment.
• • Complexity:
Complexity:the
thedegree
degreeofofheterogeneity
heterogeneityand
andconcentration
concentration
among
amongenvironmental
environmentalelements.
elements.
Associated with
 ITC

FMCG: Agro Business Paperboard

Cigarettes Hotels Leaf Tobacco Paper
Other FMCG Agro Commodities &
Packaging

18
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

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HERO HONDA’S Span
HERO HONDA-cont.
 Span of Control
of
PRESTIGE INSTITUTE OF
MANAGEMENT & RESEARCH

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