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Fundamentals of Management

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Fundamentals of Management

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RAJI VARGHESE
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Module 3

Organising
Intro…
 Organising refers to arranging everything in orderly
form and making the most efficient use of resources.
 The aim of organising is to enable people to work
together for a common purpose.
 Organising is the function of management which
follows planning.
Intro…
 Organising is one of the basic and important elements
or functions of management.
 To get things done through others ,a manager has to
organize their activities properly, so that objectives will
be achieved easily.
 It is a goal oriented process.
Intro..
 It is a function in which the synchronization and
combination of human, physical and financial
resources takes place. All the three resources are
important to get results
 The dictionary meaning ‘something that is organized”
 It can be a family ,school ,college or football team, or
it may be a Government, Army etc.
 It may be organized unit group ,club with some
specific purpose.
Definition
 ‘Organising is the process of identifying and grouping
the work to be performed, defining and delegating
responsibility and authority and establishing
relationships for the purpose of enabling people to
work most effectively together in accomplishing
objectives”- Allen
 According to Urwick “Organising is process of
dividing up of activities which are necessary to any
purpose and arranging them in a group which are
assigned to individuals.”
 Organising is a function by which the concern is able
to define the role positions, the jobs related and the
co-ordination between authority and responsibility.
 The orgainsed group of people, in a collective sense, is
known as ‘organisation’.
Nature of Organising
 Common purpose
 Division of labour
 Chain of command
 People
 Communication
 Co-ordination
 Rules and Regulations
 Environment
 Common purpose : Every organisation has to achieve
certain common goals. The organisation structure
must reflect these objectives and is bound by common
purpose.
 Division of labour : The total work of an organisation
is divided into functions and sub-functions. This is
necessary to avoid the waste of time, energy and
resources. Division of labour provides benefits of
specialisation.
 Chain of command : The authority of every position
should be well defined. The chain of superior-
subordinate relationship is known as chain of
command.
 People: An organisation is basically a group of persons.
Grouping of persons or departmentation should be
properly done in an organisation.
 Communication: Every organisation should have its
own open and clear channels of communication.
 Co-ordination: Co-operative effort is a basic feature of
an organisation. It is a mechanism for co-ordinating
different activities and parts of an organisation.
 Rules and regulations: Every organisation has some
rules and regulations for orderly functioning of people.
 Environment: An organisation functions in an
environment comprising economic, social, political
and legal factors. Therefore, the structure must be
designed to work efficiently in a changing
environment.
Steps in the process of organising
1. Identification & Division Of Work
2. Departmentalization
3. Assignment Of Duties
4. Establishing Reporting Relationships
Steps in the process of organising
Identification and Division of Work:
 It involves identification and division of total work to
be done into specific activities (called jobs) in
accordance with previously determined plans.
 By dividing the work, the burden of work can be
shared among the employees.
 It facilitates specialization of work & skills.
 Duplication of work can be avoided by dividing the
work into manageable activities.
 The total work to be done should be divided into specific
jobs as according to predetermined plans. –

 Job = a set of related tasks that can be performed by an


individual.
 It should have specific and definite tasks to be performed.

 Division of work → specialization of efforts and skills +


avoids duplication of work.

 Management must ensure that all the activities required to


achieve organizational objectives are identified
Departmentalisation
 The second step in organising is to combine or group
similar or related jobs into larger units called
departments, divisions or sections.
 They can be grouped on the basis of functions,
products, customers and territories etc.
 Departmentalisation is done to achieve coordination &
to facilitate unity of efforts.
 Grouping similar and related jobs into larger units called
departments, divisions or sections and placing them under
a department head.
 It facilitates specialization.
 The departments are linked together and are
interdependent.
 Aims at achieving co-ordination and facilitate unity of
action.
 Departmentation can be done on the basis of:
•Functions: marketing, personnel, finance etc.
•Products: Textiles, chemical, power division etc.
•Territories: Western, northern, central, eastern etc
Assignments of duties
 Once departments have been formed each of them is
placed under the charge of an individual called
departmental head (e.g., production manager, finance
manager etc.).
 Jobs are then allocated to the members of each
department according to their skills and qualifications.
 Define the work of different job positions and allocate work
accordingly.
 Once departments are formed, the department is placed
under the charge of an individual.

 Jobs are assigned to an individual best suited to perform it.

 Qualifications, experience, ability and aptitudes of people


should be matched with duties.

 E.g. activities of finance should be assigned to persons


having qualifications and experience in finance e.g. C.A’s.
Establishing Reporting Relationships
 Merely allocating work is not enough.
 Each individual should also know from whom he has
to take orders and to whom he is accountable.
 It helps in coordination amongst various department
 Granting requisite authority to enable employees to
perform the job satisfactorily.
 Superior subordinate relations between different
people and job positions created, so that everybody
knows from whom he is to take orders and to whom he
can issue orders.
 Creates management hierarchy that is a chain of
command from the top manager to the individual at
the lowest level.
 This helps in coordination.
Importance of organising
1. Benefits of specialisation:
 In organizing every individual is assigned a part of
total work and not the whole task.
 This division of work into smaller units and
repetitive performance leads to specialisation.
 Thus organizing promotes specialisation which in
turn leads to efficient & speedy performance of tasks.
2. Clarity in working relationship: It helps in creating
well defined jobs and also clarifying the limits of
authority and responsibility of each job. The superior-
subordinate relationship is clearly defined in
organizing.
3. Effective Administration: It provides a clear
description of jobs and related duties which helps to
avoid confusion and duplication. Clarity in working
relationships enables proper execution of work which
results in effective administration.
4. Optimum utilization of resources: The proper
assignment of jobs avoids overlapping/duplication of
work. This helps in preventing confusion and
minimizing the wastage of resources and efforts.
5. Adoption to Change: A properly designed
organizational structure is flexible which facilitates
adjustment to changes in workload caused by change
in external environment related to technology,
products, resources and markets.
6. Development of Personnel: Sound organization
encourages initiative and relative thinking on part of
the employees. When managers delegate their
authority, it reduces their workload so they can focus
on more important issues related to growth &
innovation. This also develops the subordinates’ ability
and helps him to realize his full potential.
7. Expansion and growth: It helps in growth &
diversification of an enterprise by adding more job
positions, departments, products lines, new
geographical territories etc.
Organization
 It is the process of integrating ,coordinating and
mobilizing the activities of members of a group for
seeking common goals.
 According Stephen B Robbins “An organization is a
consciously coordinated social entity ,with a relatively
identifiable boundary , that functions on a relatively
continuous basis to achieve a common goal or set of
goals”
Principles of organization

1. Principle of objectives
2. Principle of Division of work specialization
3. Principle of functional definition
4. Principle of scalar chain
5. Principle of Span of control
6. Principle of unity of command
7. Principle of exceptional matters
8. Principle of parity of authority and responsibility
9. Principle of balance
10. Principle of flexibility
11. Principle of coordination
12. Principle of efficiency
13. Principle of communication
14. Principle of continuity
 Formal Organisation
 Informal Organisation
 Formal Organisation
 In every enterprise, there are certain rules and
procedures that establish work relationships among
the employees. These facilitate the smooth functioning
of the enterprise. Further, they introduce a systematic
flow of interactions among the employees. Effectively,
all of this is done through a formal organization.
 Notably, the management is responsible for designing
the formal organisation in such a way that it specifies a
clear boundary of authority and responsibility.
Coupled with systematic coordination among various
activities, it ensures achievement of organisational
goals.
 Again, the management builds the formal
organisation. It ensures smooth functioning of the
enterprise as it defines the nature of interrelationships
among the diverse job positions. Additionally, these
ensure that the organisational goals are collectively
achieved. Also, formal organisation facilitates
coordination, interlinking and integration of the
diverse departments within an enterprise. Lastly, it
lays more emphasis on the work to be done without
stressing much on interpersonal relationships
Advantages of formal organisation
 The formal organisation clearly outlines the relationships among
employees. Hence, it becomes easier to laid down responsibilities.
 An established chain of commands maintains the unity of command.
 As the duties of each member is clearly defined, there is no ambiguity
or confusion in individual roles whatsoever. Further, there is no
duplication of efforts which eliminates any wastage.
 In a formal organisation, there is a clear definition of rules and
procedures. This means that behaviours and relationships among the
members are predictable. Consequently, there is stability and no chaos
existing in the enterprise.
 Finally, it leads to the achievement of organisational goals and
objectives. This is because there exist systematic and well thought out
work cultures and relationships.
Disadvantages of formal organisation
 Decision making is slow in a formal organisation. It is important
to realise that any organisational need has to flow through the
respective chain of commands before being addressed.
 Formal organisation is very rigid in nature. This means that
there prevails perfect discipline coupled with no deviations from
the procedures. Hence, this can lead to low recognition of talent.
 Lastly, the formal organisation does not take into account the
social nature of humans as it talks about only structure and
work. Interestingly, we cannot eliminate this integral part of
our nature. Hence, it does not entirely display the functioning of
the organisation.
Informal Organisation
 It’s easy to understand that if we interact with certain
people regularly we tend to get more informal with
them. This is because we develop interpersonal
relationships with them which are not based solely on
work purposes. Rather, these relationships might arise
because of shared interests, like if you get to know that
your colleague likes the same football club of which
you’re a fan of.
 As a matter of fact, informal organisation arises out of the
formal organisation. This is because when people
frequently contact each other we cannot force them into a
rigid and completely formal structure. Instead, they bond
over common interests and form groups, based upon
friendship and social interactions.
 Unlike formal organisation, informal organisation is fluid
and there are no written or predefined rules for it.
Essentially, it is a complex web of social relationships
among members which are born spontaneously. Further,
unlike the formal organisation, it cannot be forced or
controlled by the management.
 Also, the standards of behaviour evolve from group
norms and not predefined rules and norms. Lastly, as
there are no defined structures or lines of
communication, the interactions can be completely
random and independent lines of communication
tend to emerge in informal organisation.
Advantages
 In this type of organisation, communication does not need to
follow the defined chain. Instead, it can flow through various
routes. This implies that communication in an informal
organisation is much faster relative to formal organisation.
 Again, humans are social animals. The needs to socialize exists
deep within our existence. The informal organisation ensures
that there is socialization within the enterprise. Consequently,
members experience the sense of belongingness and job
satisfaction.
 In formal organisation, getting true feedbacks and reactions is
not easy. Hence, in informal organisation, various limitations of
formal organisation is covered up.
Disadvantages
 The informal organisation is random and can result in the
spread of rumours. Again, we cannot manage and control
informal organisation. Consequently, this may result in
chaos within the enterprise.
 It is important to realise that it is not possible to effect
changes and grow without the support of the informal
organisation. This can work in both ways, for growth or
decline of the enterprise.
 Informal organisation conforms to group standards and
behaviours. If such behaviours are against the
organisational interests, they can eventually lead to
disruption of the organisation.
Formal Organisation Informal Organisation
It is consciously and deliberately It arises spontaneously.
created.
Authority and responsibility are vital for It is only personal factors such as
its functioning. friendship, affinity, trust and
confidence that are important.
Rules and procedures are important. Personal relationships between
individuals is more important.
It can be shown on the organisation It cannot be shown.
chart.
Authority flows downwards and There is no flow of authority and
responsibility flows upwards. responsibility.
It is deliberately created only to attain It is created to fulfil the social needs of
the enterprise objectives. an individual.
Designations and official positions are Designations and official positions are
very important. unimportant
Type of Organisation
 Line Organisation
 Line and Staff Organisation
 Functional Organisation
 Committee Organisation
 Project Organisation
 Matrix Organisation
Line Organisation
 Line Organisation, also known as the ‘Military
Organisation’, is the oldest form of organisation. In
such organisation, the superior at the top makes
decisions and communicates his decisions and assigns
certain work to his immediate subordinates.
Line Organisation
Merits
 The staff experts provide support to the line personnel.
 The suggestions given by the staff experts, enable the
line executives to take better decisions.
 The sharing of work by the staff experts also helps to
avoid delay in performing the entire work.
Demerits
 Conflicts often arise between the line and staff
executives
 The staff experts do not have the authority to make
decisions. They can only advise. Such a position
without authority makes them ineffective.
 The line and staff pattern of organisation would
enhance the cost of operation.
Merits
 It promotes specialisation.
 Better control.
 Specialisation and standardisation will result in mass
production.
Merits
 A committee provides scope for group judgement.
 The committee also secures proper coordination among the
individuals and departments.
 The committee members feel motivated when they
participate in the discussions.
Demerits
 Constituting a committee is an expensive affair.
 The committee members take more time on discussions
and deliberations and as a result the decision get delayed.
Project Organisation

 The concept of project organisation became popular


particularly after World War II. It may be successfully
adopted if it is necessary to manage a small number of
large projects. Each project team has specialists in
different fields. The project manager would coordinate
the activities of the team members.
Merits
 It can be designed to suit individual projects.
 It makes use of specialised knowledge and skill
wherever required.
Demerits
 The project manager may have a tough time dealing
with specialists from different fields.
 The time within which the project has to be completed
will put pressure on every individual.
Matrix Organisation

 It is considered suitable where a large number of small


projects will have to be managed. A matrix
organisation is also known as a multiple command
system as it has two chains of command i.e., the flow
of authority is both vertical(line authority) as well as
horizontal(project authority)
 Separate departments are established for each
specified task.
Merits
 It offers the benefits of both functional organisation as
well as technical specialisation.
 It can be adapted to suit individual projects.
 It offers greater motivation for the personnel engaged
in the project and they show keen interest in its
successful completion.
Demerits
 It goes against the principle of unity of command as
each individual gets orders from both functional and
the project managers.
 Quick decisions may not be possible in such a pattern
of organisation in view of the complex relationship
that exists.
Organisation chart
 Diagramatic presentation of the organisation structure is
what is known as an ‘organisation chart’. It may show the
names, designations and functions of the personnel in an
organisation.
 It is a snapshot of an organisation at a particular point in
time which shows the flow of authority, responsibility and
communication among various departments which are
located at different levels of the hierarchy.
 The connecting lines on this chart show who is accountable
to whom and who is in charge of what department.
commonly adopted organisation charts are vertical charts.
Vertical organisation chart
Merits of an organisation chart
 It shows the official positions of each individual in an
organisation.
 From the organisation chart, it is possible to make out
who the superiors and subordinates are.
 It helps an outsider to understand the different
designations in an organisation.
Drawbacks of an organisation chart
 An organisation can only show the formal or official
relationships in an organisation. It cannot depict the
informal or personal relationship between the
individuals.
 Often, the organisation chart is not updated in
accordance with the changes in positions taking place
in the organisation from time to time.
demanded methods and procedures to be followed in the
organisation.
Delegation
 The process of assigning duties and authority to others
is known as delegation. Delegation is simply a process
of entrusting a part of the work by the superior to his
subordinates, which the superior does not have the
time to do.
Definition
 Dalton E.Mc Farland, defines delegation as “the
process of assigning duties, responsibilities and
authority to those whom he expects to assist him in
doing the work.”
 Theo Haimann, defines delegation as “the granting of
authority to subordinates to operate within the
prescribed limits.”
Features of delegation
 A person cannot delegate all his authority.
 Delegation does not mean avoiding responsibility. The
manager who has delegated authority is still
responsible.
 We cannot delegate someone’s authority. A person can
delegate only the authority he has.
 Normally routine matters only are delegated because
the superior himself concentrates on important issues.
The process of delegation
 Assignment of duties: The different departments in an
enterprise are headed by the respective departmental
managers. A number of subordinates work in each of these
departments. Every departmental manager assigns work to
each of the subordinates working under him. While
assigning duty, the superior shall take into account the
capabilities of his subordinates.
 Delegation of authority: Assignment of duty alone is not
enough to get the work done by subordinates. The
subordinates need to be given the requisite authority to
carry out the responsibility. Delegation of authority will
enable the subordinates to have access to the resources of
the enterprise.
 Creation of accountability: The subordinate, who has
been assigned some work and given the necessary
authority, remains liable or answerable to his superior
for the due performance of the work.
Importance of delegation
 Relief to top executives
 Specialisation benefits
 Motivation
 Quick actions
 Scope for self development
 Scope for growth
 Relief to top executives: Delegation reduces the burden of
work on top managers by transferring daily matters to
subordinates.
 Specialisation benefits: The organisation is able to get the
benefit of specialisation as jobs are assigned to those who
are best suited.
 Motivation: Delegation motivates the subordinates to work
hard and contribute greater towards achievement of goals.
 Quick actions: Delegation facilitates quick action as the
subordinates are given the freedom to take decisions
without consulting higher authorities.
 Scope for self development: It provides an opportunity
for lower-level employees to develop their skills by
using their delegated authority.
 Scope for growth: Delegation of authority will facilitate
growth and expansion of the firm as a result of more
authority at lower levels.
Types of delegation
 General delegation
 Specific delegation
 Written delegation
 Unwritten delegation
 Formal delegation
 Informal delegation
 Upward delegation
 Sideward delegation
 General delegation: In this case, the subordinate has
the authority to perform any function that may be
necessary for the accomplishment of the overall
enterprise goal.
 Specific delegation: In this case, the subordinate has
the authority to perform only a specific function.
 Written delegation: Delegation made by written
orders and instructions is what is known as written
delegation.
 Unwritten delegation: Here, delegation is based on
customs or conventions.
 Formal delegation: In the case of formal delegation,
authority is delegated as laid down in the organisation
structure.
 Informal delegation: In the case of informal delegation, a
subordinate performs a certain function although he is not
officially bound to do it. This he does because of the personal
relationship he has with the superior.
 Upward delegation: Upward delegation takes place when a
subordinate assigns some work to his superior. Such a
delegation is very rare. Sometimes, a superior may perform
the work of a subordinate if the latter has any difficulty in
doing it.
 Sideward delegation: Sideward delegation takes place when a
subordinate assigns certain work to another subordinate
working at the same level.
Principles of delegation
 Delegation to go by expected results
 Responsibility is absolute
 Authority to match responsibility
 Unity of command
 Clarification of the limits of authority
 Delegation to go by expected results: Before delegating
authority to his subordinates, the superior must be
clear about the tasks that he wants them to perform so
as to realise the expected results. The extent of
authority depends upon the nature of work.
 Responsibility is absolute: A superior can delegate only
authority and not responsibility.
 Authority to match responsibility: There should always
be parity between authority and responsibility, one
must be equal to the other.
 Unity of command: This principle says that a
subordinate should be assigned duty or responsibility
by one superior only. He is also accountable to that
superior alone.
 Clarification of the limits of authority: The
subordinate should know the limits of his authority.
While delegating authority to his subordinate, the
superior must tell him what he could and could not do.
Difficulties in Delegation of
authority
On the part of the superiors
 ‘I can do it better’ feeling
 Lack of ability to direct
 Lack of confidence on the subordinates
 Lack of proper controls
On the part of subordinates
 Fear of criticism
 Lack of information
 Lack of self-confidence
 Inadequate incentive
Decentralisation
 Concentration of decision-making authority in the hands
of a few at the top level is known as ‘Centralistation’.
 In decentralisation, there is dispersal of decision-making
authority at different levels of the organisation structure.
Subordinates have a greater role to play under
decentralisation.
 Delegation of authority is essential for decentralisation.
But delegation takes place when a superior transfers his
authority to his immediate subordinate. Decentralisation
takes place when the top management favours the dispersal
of decision-making authority in all the departments and
division of the enterprise.
Definition
 Louis.A.Allen., “ Decentralisation is the systematic
effort to delegate to the lower levels all authority
except the one which can be exercised at central
point.”
 Henry Fayol, “Everything that goes to increase the
importance of the subordinate’s role is
decentralisation.”
Distinction between Delegation
and Decentralisation
Delegation Decentralisation
Delegation takes place when a superior It means dispersal of authority
transfers his authority to his immediate throughout the organisation
subordinate
It refers to the relationship between a It refers to the relationship between top
superior and his subordinate. management and the different
departments and divisions of an
enterprise.
Delegation is important to get things Decentralisation is optional. The top
done by the subordinates. management may or may not favour the
proposal to decentralise.
The particular superior who has The top management exercises overall
delegated authority to his subordinate control.
exercises control over him.
Factors determining the degree of
decentralisation
 Attitude of the top management
 Size of the enterprise
 Nature of functions
 Extent of diversification
 Availability of capable managers
 Attitude of the top management: If the top
management wants all the decision-making authority
to be confined to itself and a few key executives, it may
prefer centralisation. On the other hand, it prefers
decision-making authority to be dispersed at different
levels of the organsiation, it is the idea of
decentralisation.
 Size of the enterprise: If the size of the concern or the
scale of its operations is small, centralisation can prove
to be effective, otherwise decentralisation can be ideal
 Nature of functions: In a manufacturing concern,
production and marketing are the basic functions. Such
basic functions may be decentralised for better results.
Functions such as personnel and finance, meant to
facilitate the performance of the basic functions, may be
centralised to derive greater efficiency.
 Extent of diversification: If the business enterprise is
producing and marketing different types of products
decentralisation will be more beneficial.
 Availability of capable managers: Decentralisation will be
successful only if the top management is able to find
capable managers to effectively manage the different
departments.
Benefits of decentralisation
 Relief to top managers
 Prompt decisions
 Motivation of subordinates
 Effective communication
Disadvantages of decentralisation
 Difficulty in securing co-ordination
 Expensive
 Lack of uniformity
 Lack of efficient personnel
 Unsuitable for small enterprises
Departmentation
 Departmentation is the process of dividing and grouping
the activities and employees of an enterprise into
departments. The total work of an enterprise is divided into
functions and sub-functions. Later, these are grouped
together to form different departments.
In a manufacturing concern, the total work may be divided
into the following functions:
 Purchase
 Production
 Marketing
 Personnel and
 Finance.
Need for departmentation
 Division of work
 Identity
 Freedom to act
 Responsibility is fixed
 Better assessment of performance
 Better control over subordinates and their activities
 Scope for expansion
 Division of work: Departmentation gives the
advantage of division of labour. As a result, the
organisation is able to benefit from specialisation.
 Identity: Departmentation gives identity to every
department. Each department can be identified with
its head and other subordinate staff.
 Freedom to act: Each department has the freedom to
plan its activities and work accordingly.
 Responsibility is fixed: The individual in every
department has to carry out a definite task. This makes
him committed to his work
 Better assessment of performance: Departmentation
provides scope for a better assessment of the performance
of the subordinates by their respective departmental heads.
 Better control over subordinates and their activities: As the
activities and employees have been grouped into
departments, it becomes easy to control the staff and their
activities.
 Scope for expansion: The concept of departmentation
offers better management of the human resources by
experts who head different departments. It also offers
greater scope for business expansion.
Basis of Departmentation

 Departmentation by Functions
 Departmentation by Products
 Departmentation by Territory
 Departmentation by Customers
 Departmentation by Functions: The most popular basis of
departmentation is the one, done according to the major
functions of an enterprise. In a manufacturing concern,
production, marketing, finance and personnel are the
major functions. Separate departments will be established
to perform these functions.
 Departmentation by Products: This approach is suitable for
those concerns that market different lines of products.
There may be separate division to look after the
production, finance, personnel and marketing needs of
each product line of the enterprise.
 Departmentation by Territory: This approach is
suitable for such organisations as banks, insurance
companies, transport companies etc. whose activities
are spread over the different parts of the state or
country. Under territorial departmentation, division of
activities is done region-wise, zone-wise or branch-
wise.
 Departmentation by Customers: The division of
activities is done based on the needs of the customers
Span of Management
 Span of Management refers to the number of
subordinates a manager can effectively manage. Span
of management is also known by certain other names
like span of control, Span of supervision etc.
 A manager will be able to perform his basic work of
guiding his subordinates and making them work only
if he has the right number of such subordinates under
him.
 The span may be wide or narrow. A wide span of
control exists when a manager has a large number of
employees reporting to him. Such a structure provides
more autonomy. A narrow span of control exists when
the number of direct reporters that a manager has is
small. Narrow spans allow managers to have more time
with direct reports, and they tend to spark professional
growth and advancement.
What if too many subordinates are placed under a
manager?
 It may result in loss of control.
 It may affect the communication relationship between
the manager and his subordinates.
 The number of subjects to which the manager can give
his attention is limited.
 Managing too many subordinates may also affect the
mental and physical health of the manger.
What if the number of subordinates is too low?
 The manager’s potential cannot be fully utilised.
 The goal of the organisation cannot be effectively
accomplished.
 More assistant or deputy managers may have to be
employed, in the case of a narrow span, if the
organisation has a number of subordinate staff. This
will result in increase in administration expenses.
Factors influencing Span of
Management
 Ability of the manager
 Capabilities of the subordinates
 Nature of work
 Facilities available
 Extent of delegation
 Quality of plans
 Ability of the manager: If the superior is capable, he
can manage more number of subordinates. The
capabilities of the manager is determined by such
qualities as his ability to command and communicate,
solve problems, make decisions and guide his
subordinates.
 Capabilities of the subordinates: If the subordinates
are all capable, they may not require much help from
their superior.
 Nature of work: If the nature of work done by the
subordinates is simple and repetitive, they may not
require much help from their superior. But if the work
is unique each time or non-repetitive, the subordinate
may have to depend on his/her superior.
 Facilities available: If the organisation can provide
such facilities to the staff as fax, computer, cell phone,
internet etc., it becomes easy to send or receive any
kind of information at any time. This avoids delay in
the execution of work. In such case, the superior may
be able to handle many subordinates.
 Extent of delegation: If the authority given to a subordinate
is not sufficient, he may have to contact the superior often
to get the latter’s consent for certain decisions. It, therefore,
becomes clear that if the subordinates are given the
required authority to make decisions, they may not depend
on their superior. In such a case the superior can mange
many subordinates.
 Quality of plans: If the organisation has definite
objectives, policies, procedures and rules, it becomes easy
for the subordinate to carry out his tasks. This allows the
superior to supervise many subordinates.

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