Span of Control and Levels of Hierarchy
Span of control
→ Span of control is the number of employees who report directly to one manager.
Example:
→ A manager directly supervises 10 employees.
→ Span of control = 10
Wide span of control
→ A manager supervises many employees.
Wide span → fewer managers needed → fewer levels of hierarchy → flatter structure
Narrow span of control
→ A manager supervises fewer employees.
Narrow span → more managers needed → more levels of hierarchy → taller structure
Relationship between span of control and hierarchy
| Wide span of control | Narrow span of control |
|---|---|
| More employees per manager | Fewer employees per manager |
| Fewer managers required | More managers required |
| Fewer levels of hierarchy | More levels of hierarchy |
| Flatter structure | Taller structure |
| Lower management costs | Higher management costs |
| Greater employee autonomy | Closer supervision |
| Communication can be faster | Communication may take longer |
Example
Suppose 100 employees need to be supervised.
→ If each manager supervises 20 employees:
100 ÷ 20 = 5 managers
→ If each manager supervises 5 employees:
100 ÷ 5 = 20 managers
→ The second arrangement requires more managers and is therefore likely to have more levels of hierarchy.
Factors affecting span of control
A manager’s appropriate span of control depends on:
→ Employee skills and experience.
→ Complexity of tasks.
→ Manager’s ability.
→ Use of technology.
→ Degree of delegation.
→ Geographical location of employees.
→ Need for supervision.
→ Corporate culture.
→ Similarity of employees’ tasks.
Example:
→ Highly experienced employees performing routine tasks may require less supervision.
→ A manager may therefore be able to have a wider span of control.
Authority and Responsibility
Meaning of authority
→ Authority is the power or right to make decisions and give instructions.
Example:
→ A purchasing manager has the authority to select suppliers and approve orders up to a specified value.
Meaning of responsibility
→ Responsibility is the duty or obligation to complete a task or achieve an objective.
Example:
→ The purchasing manager is responsible for ensuring that the business receives sufficient raw materials at an acceptable cost.
Key difference
Authority = power to decide
Responsibility = duty to act
Relationship between authority and responsibility
→ Authority and responsibility should be appropriately matched.
→ If an employee has responsibility but insufficient authority, they may be unable to complete the task effectively.
Responsibility without authority → difficulty making decisions → poor performance
→ If an employee has significant authority but little responsibility, they may make decisions without being sufficiently accountable for the consequences.
Authority without appropriate responsibility → potential misuse of power
Example
A restaurant manager is responsible for maintaining customer service standards.
→ If the manager can train employees, change staff schedules and resolve customer complaints, they have appropriate authority to fulfil the responsibility.
→ If the manager is responsible for customer service but must obtain head-office approval for every small decision, effective management becomes difficult.
Control and Trust When Delegating
Control
→ Control means ensuring that business activities are carried out according to organisational objectives, policies and standards.
→ Managers maintain control through:
→ Setting objectives
→ Establishing rules and procedures
→ Monitoring performance
→ Receiving reports
→ Checking results
→ Taking corrective action
Trust
→ Trust means having confidence that employees will use their authority responsibly and carry out delegated tasks appropriately.
→ Effective delegation requires managers to give employees enough freedom to make decisions.
The Conflict Between Control and Trust
→ Delegation creates a potential tension between managerial control and employee autonomy.
More control
→ Managers monitor decisions closely
→ Employees have less freedom
→ Greater direct supervision
→ Lower risk of some mistakes
→ But decision-making may become slower
→ Employee motivation and initiative may decrease
More trust
→ Employees receive greater autonomy
→ Faster decisions
→ Greater responsibility
→ Innovation and intrapreneurship may increase
→ But managers have less direct control
→ Poor decisions may occur if employees lack skills or information
The central dilemma
Too much control → micromanagement
→ Employees have little freedom.
→ Managers become overloaded.
→ Employees may feel that they are not trusted.
→ Initiative may decline.
Too much trust without controls → risk of poor decisions
→ Employees may make inappropriate decisions.
→ Standards may become inconsistent.
→ Managers may discover problems too late.
Example
A marketing manager delegates a social-media campaign to an employee.
Excessive control:
→ Manager approves every post.
→ Employee cannot make decisions independently.
→ Campaign becomes slow and employee motivation may fall.
Excessive trust:
→ Employee receives complete freedom with no budget limits or monitoring.
→ Spending could exceed the budget or content could damage the brand.
Balanced approach:
→ Employee receives authority to manage the campaign.
→ Clear objectives and budget are established.
→ Progress is reviewed at agreed intervals.
→ Employee has freedom to make day-to-day decisions.
Achieving a Balance Between Control and Trust
Clear objectives
→ Employees should know what they are expected to achieve.
Clear objectives → greater autonomy can be given safely
Appropriate limits
→ Managers can set boundaries for delegated decisions.
Example:
→ A manager may approve expenditure up to $10,000 without further approval.
→ Larger expenditure requires senior management approval.
Monitoring rather than micromanaging
→ Managers should monitor important results without controlling every small decision.
→ This maintains accountability while allowing employees autonomy.
Reporting systems
→ Regular reports allow managers to maintain oversight.
→ Managers can identify problems without making every decision themselves.
Employee training
→ Trust is easier when employees have the necessary skills and knowledge.
→ Training reduces the risk of poor decisions.
Performance measures
→ KPIs and other measures allow managers to assess whether delegated responsibilities are being achieved.
Control, Authority and Trust in Delegation
Manager identifies suitable task
↓
Task delegated to employee
↓
Responsibility assigned
↓
Appropriate authority provided
↓
Clear objectives and limits established
↓
Employee is trusted to make decisions
↓
Performance monitored
↓
Manager intervenes if necessary
→ This creates a balance between control and trust.
Key Relationships to Remember
Wide span of control → fewer levels of hierarchy → flatter structure → greater delegation may be required
Narrow span of control → more levels of hierarchy → taller structure → closer supervision
Authority = power to make decisions
Responsibility = duty to complete a task
Delegation = authority given to another person to carry out a task
Trust without control → greater risk
Control without trust → reduced autonomy
Effective management → appropriate control + appropriate trust