![ Graicunas showed mathematically that a number of direct, group &
cross relationships exist between a manager & his subordinates. The
number of these relationships increases with the increase in the number
of the subordinates. He said that an executive having 4 subordinates
under him is required to deal with
4 direct single relationships
12 cross relationships
28 group relationships
In all 44 relationships. He derived these on the basis if the following
formulae:
No. of direct relationships = n
No. of cross relationships = n [n-1]
No. of group relationship = n [2^(n-1)-1]
Total no. of relationships =n[2^(n)/2+ (n-1)] or n[2^(n-1)+n-1]
Where the n represents the number of subordinates.](https://image.slidesharecdn.com/42686403-span-of-management-final-ppt-230928072547-ec9c0972/85/42686403-Span-of-Management-Final-Ppt-ppt-4-320.jpg)
42686403-Span-of-Management-Final-Ppt.ppt
- 1. Span of management & Determinants of span of management
- 2. Definition Span of control, is a very important concept of organizing function of management. It refers to the number of subordinates that can be handled effectively by a superior in an organization. Span of control or span of management is a dimension of organizational design measured by the number of subordinates that report directly to a given manager. The term “span of management” is also known as “span of control,” “span of supervision” & “span of authority”. It represents a numerical limit of subordinates to be supervised & controlled by a manager.
- 3. GRAICUNAS’ THEORY It is an important principle of sound organization. This principle is based on the theory of relationships. A French management consultant. Graicunas’ analyzed superior- subordinate relationship & developed a mathematical formula based on the geometric increase in complexities of managing as the number of subordinates increases.
- 4. Graicunas showed mathematically that a number of direct, group & cross relationships exist between a manager & his subordinates. The number of these relationships increases with the increase in the number of the subordinates. He said that an executive having 4 subordinates under him is required to deal with 4 direct single relationships 12 cross relationships 28 group relationships In all 44 relationships. He derived these on the basis if the following formulae: No. of direct relationships = n No. of cross relationships = n [n-1] No. of group relationship = n [2^(n-1)-1] Total no. of relationships =n[2^(n)/2+ (n-1)] or n[2^(n-1)+n-1] Where the n represents the number of subordinates.
- 5. Role of Span Management Organizing the Business Enterprise Effective communication between different levels of management. Effective control over working.
- 6. Span of management is generally categorized under two heads- Narrow span Wide span. Matrix span Large or big organizations have developed a new pattern of organizational structure to meet their requirements.
- 7. Types Narrow Span of management means a single manager or supervisor oversees few subordinates. This gives rise to a tall organizational structure. While, a wide span of management means a single manager or supervisor oversees a large number of subordinates. This gives rise to a flat organizational structure. There is an inverse relation between the span of management and the number of hierarchical levels in an organization, i.e., narrow the span of management , greater the number of levels in an organization.
- 8. The Organizational Chart (Narrow Span) Contemporary Landscape Services, Inc. President/Owner Mark Ferguson Retail Shop Manager Nursery Manager Landscape Operations Manager Buyer Office Manager Buyer Supervisor Residential Manager Commercial Manager 6 - 8
- 9. Flat Organizational Structure --Vertical Structure. Characteristic of decentralized companies with relatively few layers of management and relatively wide spans of control Typical Law Firm Chief Partner Partners Associates Relatively wide span of control 5 - 9
- 10. Tall Organizational Structure -Vertical Characteristic of centralized companies with multiple layers of management and relatively narrow spans of control United States Army General Colonels Majors Captains & Lieutenants Warrant Officers Sergeants Corporals Privates 5 - 10 Relatively narrow span of control. At lower levels, where tasks are similar and simpler, span of control widens.
- 11. Matrix Organization Organizational structure in which teams are formed and team members report to two or more managers A matrix is a highly flexible form that is readily adaptable to changing circumstances. Matrix structures rely heavily on committee and team authority. Some companies use the matrix organization as a temporary measure to complete a specific project. The end of the project usually means the end of the matrix.
- 12. Matrix Structure (College of Business Administration) (Dean) (Director) Employee
- 13. Determinants of span management Mission Purpose Strategy Size, technology, and changes in environmental circumstances also influence structure. Although all organizations have the same basic elements, each develops the structure that contributes to the most efficient operations.
- 14. Why Do Structures Differ? – Size Characteristics of large organizations: • More specialization • More vertical levels • More rules and regulations Size How the size of an organization affects its structure? As an organization grows larger, it becomes more mechanistic.
- 15. Why Do Structures Differ? – Technology Technology How an organization transfers its inputs into outputs. Characteristics of routines (standardized or customized) in activities: • Routine technologies are associated with tall, departmentalized structures and formalization in organizations. • Routine technologies lead to centralization when formalization is low. • Non routine technologies are associated with delegated decision authority.
- 16. Why Do Structures Differ? – Environment Key Dimensions- • Capacity: the degree to which an environment can support growth. • Volatility: the degree of instability in the environment. • Complexity: the degree of heterogeneity and concentration among environmental elements. Environment Institutions or forces outside the organization that potentially affect the organization’s performance.
- 17. Organization Structure: Its Determinants and Outcomes Associated with
- 18. ITC - Business Portfolio 18 ITC FMCG: Cigarettes OtherFMCG Hotels Agro Business Leaf Tobacco Agro Commodities Paperboard Paper & Packaging
- 19. 19 Strategy of Organisation to manage diversity of Portfolio Formal 3-tiered governance structure: Board of Directors : Comprising executive (4) and non-executive directors (11) Strategic supervision Corporate Management Committee : Comprising executive directors and senior managers Strategic management Divisional Chief Executive & Divisional Management Committee : Executive management
- 21. HERO HONDA-cont.
- 22. Span of Control of PRESTIGE INSTITUTE OF MANAGEMENT & RESEARCH