Span of management refers to the number of subordinates directly reporting to a manager. Graicunas developed a formula showing the number of relationships a manager must manage increases geometrically with additional subordinates. Determinants of span include organizational size, mission, strategy, and environmental factors. Span is categorized as narrow, wide, or matrix. Narrow span creates tall hierarchies while wide span results in flat structures. Matrix structures use cross-functional teams. Organizational structure depends on its size, technology, and environment. ITC uses a formal governance structure to manage its diverse business portfolio.

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

20. HERO HONDA’S Span

21. HERO HONDA-cont.

22. Span of Control
of
PRESTIGE INSTITUTE OF
MANAGEMENT & RESEARCH