MANAGEMENT

HIERARCHY AND SPAN OF

CONTROL
 Hierarchical Organization
• is an organizational structure where every person in the organization,
except one, is a subordinate to another person. The most typical
representation of this structure is a pyramid with power concentrated at
the top in a single person. In other words, only one can sit on the throne.
The position of employees within a hierarchy indicates their status and
authority. Those at the top are the most important and are paid a larger
salary as they have more responsibility. Each layer of authority from the
top to the bottom of the organization is called a level of hierarchy or
authority.
• Each person in a level of hierarchy has the same equivalent status and
authority. Tall organization structures have many levels of hierarchy,
whereas flatter structures have relatively few. As the number of levels of
hierarchy increases, the organization will face potentially negative
consequences:

• Inflexibility - it will take a long time for information to move from the top
management to those lower down the hierarchy.
• A 'them and us' mentality may be create as the people at the bottom of the hierarchy
become increasingly remote from those at the top.
 3 Management Levels in Organizational
Hierarchy
• Top-level managers are responsible for setting goals, creating plans and supervise
the entire organization.
• Middle-level managers are engaged in diverting organizational activities to attain
the goals set by top management.
• The lower-level managers are running every work unit in the organization and
carrying out the essential tasks. They are the foot soldiers of the company.
 1. Top-Level Management
• Top-level managers, or top managers, are also called senior management or executives.
Leaders of the organization are setting in top-level management. These individuals are
at the top one or two levels in an organization, and hold titles such as: Chief Executive
Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer (COO), Chief
Information Officer (CIO), Chairperson of the Board, President, Vice president,
corporate head. Top-level managers make decisions affecting the entirety of the firm.
• Top managers do not direct the day-to-day activities of the firm; rather, they set goals for the
organization and direct the company to achieve them.
• Top managers are ultimately responsible for the performance of the organization, and often, these
managers have very visible jobs.
• Top-level managers require having very good conceptual and decision-making skills.
 3. Lower-Level Management
• First-level managers are also called first-line managers, shop-level managers, or supervisors. 
• These managers have job titles such as office manager, Shift Supervisor, Department manager, Foreperson,
Crew leader, Store manager.
• First-line managers are responsible for the daily management of line workers—the employees who actually
produce the product or offer the service.
• There are first-line managers in every work unit in the organization. Although first-level managers typically
do not set goals for the organization, they have a very strong influence on the company. These are the
managers that most employees interact with on a daily basis, and if the managers perform poorly, employees
may also perform poorly, may lack motivation, or may leave the company.
• A First-level manager requires having technical skill knowledge for the particular work that he is
supervising.
 2. Middle-Level Management
• Middle-level managers, or middle managers, are those in the levels below top managers. 
• Middle managers‘ job titles include General Manager, Plant manager, regional manager, and
Divisional manager.
• Middle-level managers are responsible for carrying out the goals set by top management. They do
so by setting goals for their departments and other business units.
• Middle manager‘s controls, motivate and assist first-line managers to achieve business objectives.
• Middle managers also communicate upward, by offering suggestions and feedback to top managers.
Because middle managers are more involved in the day-to-day workings of a company, they may
provide valuable information to top managers to help improve the organization‘s bottom line.
• Middle-level managers‘ job‘s perfection depends very much on this communication and
interpersonal skills.
 Span Of Control
• The span of control is the number of people directly accountable, and
reporting, to one manager. The span of control refers to the number of
people that each manager is directly responsible for. A large span of
control means that a manager has a large number of staff under their direct
control, while a small span of control means that each manager looks after
a small group of staff. This is an important topic as it is normally agreed
that the wider the span of control the fewer levels of hierarchy the
business needs.
 Two dimensions of Control Span
• The Span of Control always involves two dimensions:
• 1. Horizontal dimension This is the number of direct subordinates a manager
actually supervises. This is also referred to as Span of Control.
• 2. Vertical dimension This is the number of levels that are (in) directly managed. It
refers to the extent to which the manager‘s wishes trickle down to the lowest levels
of the organization. This is also known as Depth of Control. It is mainly aimed at the
extent of communication between a manager and his subordinates in the levels he is
responsible for. Without a good leader, downward communication can be impaired.
 Factors :
• Good leadership partially has to do with a manager‘s innate talents. In addition,
there are several other factors that play a role. One example would be the size of
the Span of Control and the number of subordinates. It also has to do with:
• 1. A manager‘s experience and expertise.
• 2. A manager‘s personality and people skills.
• 3. Employees‘ experience, expertise and their behavior towards each other.
• 4. The nature of the work and the complexity of the assigned tasks.
• 5. The nature of the organization and the level of communication, delegating and interaction.
 Assigned tasks
• Initially, it is about assigning tasks, authority and responsibilities. The more authority and responsibility an
employee have, the higher his position in the hierarchy of the organization. The number of tasks an employee
has, however, has no bearing on their hierarchical position. It is vital to distinguish between compound tasks
and singular tasks.
• Compound tasks are primarily intended for inexperienced employees just starting out. They still require a lot
of supervision and instruction and need to be monitored frequently by their managers
• The singular task is meant for experienced employees. He knows the objective, when the task needs to be
completed and he is also responsible for the entire process. He requires little or no supervision by his
superior.
• At most, he might benefit from some instruction beforehand and an interim and final evaluation. It is easier
for a manager to supervise a large group of such employees, because everyone knows what is expected of
them.
 Harmony
• Span of Control is indicative of the quality of leadership. It is also a well-
known fact that a manager with a large Span of Control has a lot of people
under him. The smaller a manager‘s Span of Control, the less subordinates
he can lead.
• It is therefore very important for Span of Control and scope of control to
be in harmony with each other. When one is larger or smaller than the
other, problems arise in leadership method, employee instruction and
teamwork.
 Increasing Span of Control
• When a manager supervises a large number of employees, he often has little time to align activities
and monitor the quality of how activities are executed. Every situation needs to be assessed
individually based on factors that determine the span of control. If a situation arises in which a
supervisor manages too many employees, there are several ways for finding a solution to increase
the Span of Control:

• Training the manager, teaching him management skills such as delegating and clear communication.

• Training employees, teaching them to work independently and make better use of their time.

• Delegation by the manager, decreasing his workload and improving the division of labor.
• Improving procedures and systems; when procedures take up a lot of time, it is a good idea to find

efficient solutions with the help of the management team.

• Involving HR, who will unburden the manager by taking over certain specialist tasks such as the

department‘s HR policy.

• Assigning a personal assistant, who can take over routine activities, reducing the manager‘s workload.

• Appointing an assistant-manager who reports to the manager, but in the perception of the subordinates is

fully qualified in terms of executive and policy tasks and can act as manager when needed .
 Span of Control example
• Here are two examples to illustrate the harmony between Scope of control and Span of
Control.
• First is a situation with a manager with years of experience leading a team of approximately 40
people. Problems arise when his team is reduced to 20 people as a result of cutbacks. At first,
everything still seems to be okay. Everyone knows what is expected of them, but as time goes
by, the manager starts feeling uneasy. He wants to have more control and make things go his
way.
• Employees start to feel the manager is constantly looking over their shoulder and see his
presence as a hindrance. It is likely that the manager will start to get bored and will no longer
be able to find intrinsic motivation in his work. Conflicts may arise and small problems
become big ones very easily. In some cases, the manager can feel he is not sufficiently
stimulated, which can have very negative consequences.
• The second situation involves a manager who is used to leading a team of about
five employees. He will experience stress when he is made responsible for a
group of 20 people. If the employees are able to function on their own, things
might be al-right at first. But when problems or conflicts arise, the manager needs
to be there for all 20 of his subordinates. He will find it difficult to delegate tasks,
because he is used to working one-on-one with only about five employees.
• The situation becomes more complicated for the manager when the majority of
the 20 employees are not able to function independently. The manager will be
confronted with his own lack of delegating skills. In both cases it is important to
identify the problem and offer practical solutions.
1. Flat hierarchy
-Have a high span of control
 Flat hierarchy
• Flat hierarchies have in recent years become well-known in the business world as
alternatives to more traditional structures. Some quarters of the media have positioned
flat hierarchies as a necessity for the successful companies of tomorrow. However, this is
not the case. They suit certain organizations but will likely be detrimental to others. Flat
hierarchies have no middle managers between staff and executives, with decisions made
by self-organizing teams or rotating team leaders. Overall, managers tend to have more
responsibility and accountability in flat organizations. This is particularly true where
there is only one layer between staff and the executive level.
 Flat hierarchies: the pros
• A) Communication is clearer and less susceptible to degradation
• Information passing through multiple organizational layers inevitably degrades by
the time it reaches the frontline. The degradation is often more severe when
information is communicated electronically, because nuance gets lost. In flatter
organizations, where information has to pass through fewer layers before it reaches
the frontline, the degradation is likely to be less severe. This obviously helps in
cascading down goals and decisions effectively
• B) Decisions can be made faster and closer to the point of impact
• In traditional hierarchical organizations, where decision-making authority is
centralized in individuals, there are inevitably delays. For example, when people are
away, busy or need to be brought up to speed on the nature of the issue before they
make decisions. In flatter hierarchies, decisions can be made at the point-of-need,
resulting in fewer delays to progress. This can make flat structures suitable for
organizations that need to move fast. E.g., organizations looking to build first-mover
advantage.
• C) Labor costs are reduced due to fewer higher-paid middle managers
• The layer of middle management is often the most expensive across
the organization. By decreasing the number of employees in this layer,
organizations decrease their costs. This includes not only salary costs
but also associated benefits and training. Organizations that transition
to flat hierarchies may need to redeploy some of this money into new
incentive structures. Although, generally flat hierarchies will reduce
their labor bill because of the smaller layer of middle management.
• D) Increased autonomy and empowerment are motivating to
employees
• Flatter hierarchies boost autonomy, which is considered a key factor in employee
satisfaction in the workplace. In flatter organizations, employees are naturally more
involved in decision making as there are fewer managers to defer to. Employees
may also be more likely to engage in job crafting to suit the changing needs of their
role, the organization and their colleagues, which can lead to the emergence of
greater autonomy as employees develop new areas of focus.
• E) Innovation can happen informally and more quickly
• By its nature, innovation is not a business as usual‘ process and so innovative ideas
often require managerial sign-off. This may involve time-consuming processes like
creating a business case to prove the commercial value. This means that innovation
takes longer in traditional hierarchies, which prioritize stability and controlled
growth. In flatter hierarchies, innovative decisions can be taken as easily and quickly
as decisions classified as business as usual. This is often why start-ups and
disruptive companies adopt flatter structures. Because high-growth and innovation
are the main aims, rather than stability, cost-savings and a focus on the bottom line.
 Flat hierarchies: the cons
• a) Informal, dysfunctional hierarchies may take the place of formal
ones
• Baker (2015) says that a lack of formal hierarchies in flat organizations leaves a
vacuum for the emergence of informal hierarchies. Unless acknowledged, can be
very destructive. These hierarchies can be based on things like personality or
perceived skillset and value.
• Those with more forceful personality types may also find non-hierarchical setups
better suited to acquiring ‗soft power‘. This is power that is co-opted rather than
coerced. This may see de facto leaders emerge who wield power without formal
authority.
• b) A lack of supervision and oversight means it’s harder to track
productivity
• Supervision, to a lesser or greater degree, is a cornerstone of hierarchical systems. This
creates a layer of oversight on employee productivity and helps ensure that behaviors
and outputs do not deviate from the expected norm. This allows organizations to ensure
all parts of the organization are contributing to overall strategic goals.
• Oversight is time-consuming and is much easier with a managerial layer. The total
absence of this layer, or a much smaller layer, means that oversight is far harder and
organizations must rely on the skills, motivation and knowledge of each worker to
contribute in the right way, every day.
• c) Bureaucratic coordination is slow or impossible to scale
• Blogging platform Medium moved away from holarchy, citing a number of reasons.
One of which was that for larger initiatives it was difficult and time-consuming to
get alignment across teams. This process could also be divisive and disruptive, they
added.
• This is why some scholars suggest flat hierarchies work for small-to-medium sized
organizations. But that once organizations get larger and more bureaucratic, relying
on collective buy-in and decision-making can be too slow to move the whole
machine as one.
• d) Responsibility and accountability become diffused
• Flat hierarchies tend to suffer from diffusion of responsibility. Everyone is less
likely to take responsibility because there are others present and because it‘s not
clear who has overall responsibility for performance.
• Employees are more likely to be generalists in some variants of flat hierarchies. For
example, doing a bit of everything, which again dilutes responsibility because clear
lines of focus and responsibility are absent.
• On the flip-side, for some employees, a lack of clear lines of responsibility can lead
to worse work-life balance. This is due to feeling responsible for everything and
pick up the slack when others don‘t pull their weight.
• e) Horizontal promotions may not sufficiently motivate people
• Depending on the number of managerial roles, promotion opportunities in flat organizations
may range from rare to non-existent. Promotion will likely be limited to horizontal moves, with
the benefits being mastery of new skills and exposure to different environments.
• However, they do not offer greater seniority or people management experience, both of which
are highly transferable to other environments and organizations and also tend to correlate with
higher pay.
• The lack of these types of opportunities may encourage employees to leave, particularly those
who reach a point in their career or life when seniority and higher pay become important to
them. If you‘re interested in flatter hierarchies then our articles on strengthening employee
voice are a good next step for you. Start with our piece on why employee voice is so important
to sustainable success in modern organizations.
2. Tall Hierarchy
Narrow or low span of control
 Advantages of a tall organizations
1. There is a narrow span of control i.e. each manager has a small number of
employees under their control. This means that employees can be closely
supervised
2. There is a clear management structure.
3. The function of each layer will be clear and distinct. There will be clear lines of
responsibility and control
4. Clear progression and promotion ladder
 Disadvantages of a tall organization
• 1. The freedom and responsibility of employees (subordinates) is restricted.
• 2. Decision making could be slowed down as approval may be needed by each of the
layers of authority
• 3. Communication has to take place through many layers of management
• 4. High management costs because managers are generally paid more than
subordinate; A management layer will tend to get more pay than
managers/employees in the layer below them.
 5. MANAGEMENT SKILLS
• Management skills can be defined as certain attributes or abilities that an executive should
possess in order to fulfill specific tasks in an organization. They include the capacity to
perform executive duties in an organization while avoiding crisis situations and promptly
solving problems when they occur. Management skills can be developed through learning
and practical experience as a manager. The skills help the manager to relate with their fellow
co-workers and know how to deal well with their subordinates, which allows for the easy
flow of activities in the organization.
• Good management skills are vital for any organization to succeed and achieve its goals and
objectives. A manager who fosters good management skills is able to propel the company‘s
mission and vision or business goals forward with fewer hurdles and objections from
internal and external sources.
• Management and leadership skills are often used interchangeably as they
both involve planning, decision-making, problem-solving,
communication, delegation, and time management. Good managers are
almost always good leaders as well. In addition to leading, a critical role
of a manager is to also ensure that all parts of the organization are
functioning cohesively. Without such integration, several issues can arise
and failure is bound to happen. Management skills are crucial for various
positions and at different levels of a company, from top leadership to
intermediate supervisors to first level managers
 Types of Management Skills
• 1. Technical Skills Technical skills involve skills that give the managers the ability and the
knowledge to use a variety of techniques to achieve their objectives. These skills not only involve
operating machines and software, production tools, and pieces of equipment but also the skills
needed to boost sales, design different types of products and services, and market the services and
the products.
• 2. Conceptual Skills These involve the skills managers present in terms of the knowledge and ability
for abstract thinking and formulating ideas. The manager is able to see an entire concept, analyze and
diagnose a problem, and find creative solutions. This helps the manager to effectively predict hurdles
their department or the business as a whole may face.
• 3. Human or Interpersonal Skills The human or the interpersonal skills are the skills that present the
managers‘ ability to interact, work or relate effectively with people. These skills enable the managers
to make use of human potential in the company and motivate the employees for better results.
 Examples of Management Skills
• 6 essential management skills that any manager ought to possess for them to
perform their duties:
• a) Planning is a vital aspect within an organization. Planning is one‘s ability to
organize activities in line with set guidelines while still remaining within the limits of
the available resources such as time, money, and labor. It is also the process of
formulating a set of actions or one or more strategies to pursue to achieve certain goals
or objectives with the available resources. The planning process includes identifying
and setting achievable goals, developing necessary strategies, and outlining the tasks
and schedules on how to achieve the set goals. Without a good plan, little can be
achieved.
• b) Communication
• Possessing great communication skills is crucial for a manager. It can determine how well
information is shared throughout a team, ensuring that the group acts as a unified
workforce. How well a manager communicates with the rest of his team also determines
how well outlined procedures can be followed, how well the tasks and activities can be
completed, and thus, how successful an organization will be.
• Communication involves the flow of information within the organization, whether formal
or informal, verbal or written, vertical or horizontal, and it facilitates smooth functioning
of the organization. Clearly established communication channels in an organization allow
the manager to collaborate with the team, prevent conflicts, and resolve issues as they
arise. A manager with good communication skills can relate well with the employees and
thus, able to achieve the company‘s set goals and objectives easily.
• c) Decision-making
• Another vital management skill is decision-making. Managers make numerous
decisions, whether knowingly or not, and making decisions is a key component in a
manager‘s success. Making proper and right decisions results in the success of the
organization, while poor or bad decisions may lead to failure or poor performance.
For the organization to run effectively and smoothly, clear and right decisions should
be made. A manager must be accountable for every decision that they make and also
be willing to take responsibility for the results of their decisions. A good manager
needs to possess great decision-making skills, as it often dictates his/her success in
achieving organizational objectives.
• d) Delegation
• Delegation is another key management skill. Delegation is the act of passing on work-
related tasks and/or authorities to other employees or subordinates. It involves the
process of allowing your tasks or those of your employees to be re-assigned or re-
allocated to other employees depending on current workloads. A manager with good
delegation skills is able to effectively and efficiently reassign tasks and give authority
to the right employees. When delegation is carried out effectively, it helps facilitate
quick and easy results.
• Delegation helps the manager to avoid wastage of time, optimizes productivity, and
ensures responsibility and accountability on the part of employees. Every manager
must have good delegation abilities to achieve optimal results and accomplish the
required productivity results.
• e) Problem-solving
• Problem-solving is another essential skill. A good manager must have the ability to
tackle and solve the frequent problems that can arise in a typical workday. Problem-
solving in management involves identifying a certain problem or situation and then
finding the best way to handle the problem and get the best solution. It is the ability
to sort things out even when the prevailing conditions are not right. When it is clear
that a manager has great problem-solving skills, it differentiates him/her from the
rest of the team and gives subordinates confidence in his/her managerial skills.
• f) Motivating
• The ability to motivate is another important skill in an organization. Motivation
helps bring forth a desired behavior or response from the employees or certain
stakeholders. There are numerous motivation tactics that managers can use, and
choosing the right ones can depend on characteristics such as company and team
culture, team personalities, and more. There are two primary types of motivation that
a manager can use, which includes intrinsic and extrinsic motivation.
6. PRINCIPLES OF MANAGEMENT
• As your career progresses, you may find you do fewer technical tasks and spend
more time guiding a team or planning strategy.
• While that's often a given today, in the 19th century most companies promoted the
best technicians. But Henri Fayol recognized that the skills that made them good at
their jobs didn't necessarily make them good managers.
• Fayol was an engineer who worked his way up to become manager of the
Compagnie de Commentry-Fourchambault-Decazeville mining company in France,
at the tail end of the industrial revolution. Under his watch, the struggling firm
prospered.
• He wrote, "When I assumed the responsibility for the restoration of Decazeville, I did not
rely on my technical superiority... I relied on my ability as an organizer [and my] skill in
handling men.
• It was the reality of Fayol's day-to-day managing, seeing what worked and what didn't,
that informed his 14 Principles of Management. By focusing on administrative over
technical skills, the principles are some of the earliest examples of treating management
as a profession. They are:
1. Division of Work
– work should be divided among individuals and groups to ensure that effort and
attention are focused on special portions of the task. Fayol presented work
specialization as the best way to use the human resources of the organization.
2. Authority
– the concepts of authority and responsibility are closely related. Authority was
defined by Fayol as the right to give orders and the power to exact obedience.
Responsibility involves being accountable, and is therefore naturally associated with
authority. Whoever assumes authority also assumes responsibility.
3. Discipline
– Everyone should follow the rules. To help, you can make agreements between the
organization and employees clear for all to see.
4. Unity of Command
– Fayol wrote that "an employee should receive orders from one supervisor only."
Otherwise, authority, discipline, order, and stability are threatened.
5. Unity of Direction
– Teams with the same objective should be working under the direction of one
manager, using one plan. That, Fayol wrote, "is the condition essential to unity of action,
coordination of strength and focusing of effort."
6. Collective Interest Over Individual Interest
– Individuals should pursue team interests over personal ones – including
managers.
7. Remuneration
– Employee satisfaction depends on fair remuneration for everyone – financial and
non-financial. Fayol said pay should be fair and reward "well-directed effort.“
8. Centralization
– Balancing centralized decision making (from the top) with letting employees
make decisions. Or as Fayol wrote, "A place for everyone and everyone in his place."
9. Scalar Chain
– Employees should know where they stand in the organization's hierarchy and who to
speak to within a chain of command. Fayol suggested the now-familiar organization chart
as a way for employees to see this structure clearly.
10. Order
– Fayol wrote that, "The right man in the right place" forms an effective social order.
He applied the same maxim to materials: right one, right place. Academics note that this
principle pre-empted the Just in Time (JIT) strategy for efficient production.
11. Equity
– Managers should be fair to all employees through a "combination of kindliness and
justice." Only then will the team "carry out its duties with... devotion and loyalty."
12. Stability of Tenure of Personnel
– Organizations should minimize staff turnover and role changes to maximize
efficiency. If people are secure and good at their jobs, they are happier and more productive
13. Initiative
– Employees should be encouraged to develop and carry out plans for improvement. As
Fayol wrote, "At all levels of the organizational ladder, zeal and energy on the part of
employees are augmented by initiative.“
14. Esprit de Corps
– Organizations should strive to promote team spirit, unity, and morale.