Span of Control & Organisational Structure

What is Span of Control And Organisational Structure?

It is very important to understand span of control and organisational structure when describing an organisation. Simply, span of control refers to the number of subordinates under the manager’s direct control. As an example, a manager with five direct reports has a span of control of five. To many or to few direct reports is a good way to view how efficent an organisation is as long as it looked at in the context of the companys organisational structure.

An Executive team structure with a ‘narrow’ Span of Control

How many direct reports can a manager have?

Is there an optimal number? What needs to be considered is the nature of the work that subordinates are performing and how much attention each requires. For example a Call Center, the span of control can be numbers over 100, while executive functions – with high degrees of collaboration and interaction – could productively tolerate no more than three or four. So the nature of the work being performed, and how much attention it requires should govern the assignment of personnel to a manager, and not some industry ideal goal.

Call Center Organisation showing a ‘wide’ Span of Control

Expanding On the Concept of Span of Control

While we are addressing span of control, let’s also broaden our understanding to see it in the context of the organisational structure levels of hierarchy.

Width: Organisation structures can be described as wide (with larger span of control) or narrow (with smaller span of control.)

Height: As there are levels of management, or hierarchy, an organisation may be tall (with many levels) or flat (with fewer levels.)

Flat organisations have a ‘wide’ span of control and Tall organisations have a ‘narrow’ span of control.  While there are pros and cons with both tall and flat structures, a company’s structure must be designed to suit the business (the customer and markets) and in a way that fits with the workforce’s capability.

A Tall vs. Flat Organisational Structure

Characteristics of a Flat Organisational Structure (Wide Span of Control)

Pros

• Encourages delegation.  Managers must better delegate to handle larger numbers of subordinates, and grant opportunities for subordinates to take on responsibilities
• Agile.  Improves communication speed and quality
• Reduces costs. More cost effective because of fewer levels, thus requiring fewer managers
• Helps prevent the workforce from disengaging by focusing on empowerment, autonomy and self-direction

Cons

• High managerial workload comes with high Span of Control
• Role confusion more likely
• May cultivate distrust of management

Characteristics of a Tall Organisational Structure (Narrow Span of Control)

Pros

• More rapid communication between small teams
• Groups are smaller and easier to control/manage
• There’s a greater degree of specialisation and division of labor
• More and better opportunities for employee promotion

 Cons

• Communication can take too long, hampering decision-making
• Silos may develop and prevent cross-functional problem solving
• Employees may feel lost and powerless

Conclusion

As you can see the organisation’s structure dictates the span of control you are going to assign to managers. Whether you choose a ‘tall’ or ‘flat’  struture should depend on you business and serving your customers and while each structure has it pros and cons the best way for you to model and visualise the organisation is with OrgChart Platinum. OrgChart gives you the ablity to model and visualise the organisation and automate the process.