SPAN OF CONTROL

What?  A span of control is the number of people who report to one manager in a hierarchy. The more people under the control of one manager - the wider the span of control. Less means a narrower span of control.

Advantages of Narrow  A narrow span of control allows a manager to communicate quickly with the employees under them and control them more easily  Feedback of ideas from the workers will be more effective  It requires a higher level of management skill to control a greater number of employees, so there is less management skill required

Advantages of Wide  There are less layers of management to pass a message through, so the message reaches more employees faster  It costs less money to run a wider span of control because a business does not need to employ as many managers

Layering & Delayering  The terms refer to how many levels appear in a management hierarchy.  Layering is the process of adding levels and delayering is the removal of these.  Delayering usually means increasing the average span of control of senior managers within the business and is seen as a way of reducing operating costs, particularly as a response to the economic downturn.

Delayering Advantages  Offers opportunities for delegation, empowerment and motivation as the number of managers is reduced and more authority is given to shop-floor workers  It can improve communication within the business as messages have to pass through fewer levels of hierarchy  It can remove departmental rivalry if department heads are removed as the workforce is organised in teams  It can reduce costs as fewer employees are required and employing middle managers can be expensive  It can encourage innovation  It brings managers into close contact with the business’ customers

Delayering disadvantages  Not all organisations are suited to flatter organisational structures - mass production industries with low-skilled employees may not adapt easily  De-layering can have a negative impact on motivation due to job losses, especially if it is really just an excuse for redundancies  A period of disruption may occur as people take on new responsibilities and fulfil new roles  Those managers remaining will have a wider span of control which, if it is too wide, can damage communication within the business

Types of Authority

Line Authority  The authority a manager has over a subordinate. Communication will flow from the superior to the subordinate.

Line cont.  Subordinates have a clear understanding of who is giving them instructions  Line managers are usually better placed than Managing Directors to decide which employee should perform each task.  Instructions may take a while to be executed if there is a long chain of command.

Staff Authority  When a manager has a function in another part of the business, usually specialist advice.  E.g. Personnel managers will have a role to play in all departments. (Skills management, Training etc.)  Although they can advise, they have no direct authority to make a decision for another department.

Staff cont...

Functional Authority  The specialist now has the authority to make the line manager accept advice.  A good example of functional authority is the finance manager having control over all department budgets.

Task  P.333 Question 1(a-e)  P.336 Question 3 discussion.