Module 1- Part 2

Functions of Management
1. Planning – Concept, Nature, Types, Analysis
2. Management by objectives (MBO)
3. Organization Structure – Concept, Structure,
Principles, Centralization, Decentralization, Span
of Management; Organizational Effectiveness.
[3] Organization Structure – Span
of Management
 Span of Management
The term “span” in terms of management refers to the number of
subordinates a manager controls or supervises effectively and efficiently.
According to Speigal, the span of control means the number of people report
directly to an authority. The principle of span of control implies that no
single executive should have more people looking to him for guidance and
leadership than he can reasonably be expected to serve.

Determining the proper span

Graicunos (1933) identified a formula to ascertain the number of
subordinate-superior relationships-
# of relationships = n(2ⁿ /2 + n-1)
[n stands for # of subordinates]
 Span of Management

Graicunos identified 3 types of

subordinate superior relation ship.
•Direct single relationship where
direct individuals contact the
supervisor (=n)
•Direct group relation arise in all
possible combinations [=n(2*n-1-1)]
•Cross relationship arises because of
mutual interaction of subordinates
under a superior [=n(2*n/2+n-1)]
 Span of Management

Chain of Command and line staff

relationships
The line activities are concerned directly with
attaining the company’s output objectives
whereas the staff activities exist in order to
help make line activities more effective and
provide support.

Definitions of Terms
• Chain of command refers to the
unbroken flow of authority originating
from the CEO and reaching down to the
worker.
 Span of Management

• The legitimate power to make

decisions at different levels and in
different roles is termed as Authority.
The other side of authority is
responsibility which is vested in
different positions and at various
levels.

• Managers sometimes transfer

authority to the employees below
them to meet the demanding needs of
customer or respond to respective
onslaughts is termed as Delegation
 Factors affecting Span of Management
• The capacity and ability of executives
• Competence and training of subordinates
• Nature of work
• Time available for supervision
• Degree of decentralization and extent of delegation
• Effectiveness of communication system
• Quality of planning
• Degree of physical dispersion
• Assistance of experts
• Control mechanism
• Dynamism or rate of change
• Need for balance
 Types of Span of Management

Span of management determine

the number of hierarchical levels in
an organization-
•A Tall structure or Narrow Span:
A tall or vertical structure that
implies many levels of supervision.

•A flat structure or Wider Span :

It means fewer levels of
supervision.