Page 2 - Lesson Note 2

Span of management refers to the number of subordinates under a

superior. Based on the span of management, the nature and structure of
the organization are determined.

Narrow Span of Management: The span of management is said to
be narrow if there are only a few subordinates reporting to a
superior. When the span of management is narrow, there are

multiple levels of management. So, it gives rise to a tall
organisational structure.

Wide Span of Management: If a large number of subordinates
report to a superior, the span of management is said to be wide.

When the span of management is wide, there are fewer levels of
management. So, it gives rise to a flatter organisational structure.

First and foremost we must remember that an organization structure is a

result of the organizing process. The organization structure consists of
the various jobs, departments and responsibilities in the enterprise

coupled with the definition of the extent of control, management and
authority. It also consists of the relationships between various members
of the enterprise. All in all, an organization structure is a framework

within which managerial and operating tasks are performed. This is
because it defines the extent of management or the span of

management.

In other words, it specifies authority by clearly stating the subordinates

to a superior and to whom the superior is a subordinate himself. In
effect, this highlights the levels of management in an enterprise and
allows for correlation and coordination among individuals. Talking about

the significance of an organization structure, it facilitates growth and
changes within an enterprise. As a matter of fact, an enterprise with a

static structure and thus resistance to change can soon go out of fashion
in the dynamic business world. Thus it is important to realize that an