Span of control-factors

affecting span of control

THEORY OF GRAICUNAS
He was a
French
management
consultant.
He followed a
different path
and
distinguished
three types of
relationships
between
superior and
subordinates.

THREE TYPES OF
RELATIONSHIP
Direct relationship (superior has
direct link with subordinates).
Direct group relationship(arises
between manager and group of
subordinates ).
Gross relationship ( relationship
among subordinates).

DIRECT SINGLE
RELATIONSHIP

DIRECT GROUP
RELATIONSHIP

GROSS RELATIONSHIP

IPR
Three types of interpersonal
relationships:
1. Direct singlebetween manager
and each subordinate.
2. Direct groupbetween manager
and each permutation of subordinate
groups.
3. Crosssubordinates interacting
with each other

Factors determining the span of management:

Capacityof manager:Each
manager
has
differentcapacityand ability in
terms
of
decision
making,
leadership,
communication,
judgment, guidance and control etc.
Managers having more abilities in
respect to these factors may have
more number of subordinates.

 Capacityof
subordinates:capacityof
subordinates also affects the span of a
manager.
Efficient and trained subordinates may work
without much help of their manager.
They may just needbroadguidelines and
they will perform accordingly.
They would require lesser time from their
superior due to which manager can have
large number of subordinates under him.

 Nature of work:If subordinates are

performing similar and repetitive routine
work they can do their work without having
much time of the manager.
Frequent changes in work would require
moredetailedinstructions from manager
whenever there is change in work.
Type of technology used also affects the
span of control.

 Degree of Decentralization:degree
ofcentralizationor
decentralization
affects the span by affecting the
involvement in decision making process.
If
manager
clearly
delegates
his
authority and defines it fully this would
require less time to devote to manage his
subordinates as subordinates will take most
of theactionsby their own.
Hence manager can have wider span

 Degree of Planning:If the planning is

effectively
done
particularly
if
standing plans procedures rules methods
are clear then subordinates can make
their decisions on their own.
If they have to make their own plans
they would require more guidelines by
superiors and manager can handle narrow
span in the case of improper planning.

 Communication
System:If
communication
system
is
modern i.e. tools like electronic
devices will save time of face to face
interaction, which require more time,
span
of
manager
can
be
increased

 Level
of
Management:level
of
management also affects the span.
Higher the level of management
lesser the number of subordinates as
higher level management does not have
much time to supervise. They spend their
most of time in planning and other
functions.
Lower level managers can have wider
span than the higher level managers.

 Physical
location:If
all
the
persons to be supervised are
located at same place within the
direct supervision of manager, he
can supervise more number of
people.
If subordinates are at different
locations
then
manager
can
supervise less number of spans.

Formal Organization
The Formal Organization is a system of welldefined jobs, each bearing a definite
measure of authority, responsibility and
accountability.
Louis Allen

Formal Organization is a system of

consciously coordinated activities of two or
more persons toward a common objective.
Chester Barnard

Formal Organization
The formal organization is a goaloriented entity that exist to
accurate the efforts of individuals
and it refers to the structure of jobs
and positions with clearly defined
functions, responsibilities and
authorities

Formal Organization

Objectives of Formal Organization

To facilitate the accomplishment of the goals of

the organization
To facilitate the co-ordination of various activities
To aid the establishment of logical authority
relationship
To aid the establishment of division of labor
Create group cohesiveness

Characteristics of Formal Organization:

1. Well defined rules and regulation.

2. Determined objectives and policies.

3. Limitation on the activities of the

individual.

cntd

4. Strict observance of the principle of

coordination.

5. Messages are communicated through

vertical chain.

6. Status symbol.

Functions of Formal
Organization:

Set specific Goals for

organization
Establishing working
relationship
Create group cohesiveness
Organizational Development
Discipline
Human Resource Development

Advantages of Formal
Organisation
Systematic Working
Achievement of Organisational Objectives
No Overlapping of Work
Co-ordination
Creation of Chain of Command
More Emphasis on Work

Limitations of Formal
Organization:

Limited Flexibility
Slowness of processing
Communication Barrier
Quality of decision
Slowness in Problem
detection & processing

Types Of Formal
Organisation

coercive

organization

which maintains control through

force.
Once you enter a coercive
organization, you cannot leave
without permission.
The culture is one of strict
obedience and order, and
members are typically stripped of
individuality and forced to
conform.
Eg. Prison and military

Utilitarian Organizations
which maintains control through
bartering.
People join utilitarian organizations
because they have something to gain.
The culture is one of productivity and
purpose.
Members are compensated for their
contributions.
Colleges and universities are also
examples of utilitarian organizations.

Normative Organizations
which maintains control through shared
moral commitment.
Membership in normative organizations is
purely voluntary.
People join because they want to or
because of a strong, positive sense of
obligation.
Members work together to promote an
important social cause.
Churches, political parties, and
fraternities are examples of normative
organizations.

Informal Organization
An Informal organization is an aggregate of
interpersonal relationships without any
conscious purpose but which may contribute to
joint results.
Chester Barnard
Informal organization is a network of
interpersonal relationship that arise when
people associate with one another .
Keith Davis

Informal Organization
The informal organization is the
interlocking social structure that
governs how people work together in
practice. It is the aggregate of
behaviors, interactions, norms, personal
and professional connections through
which work gets done and relationships
are built among people who share a
common organizational affiliation or
cluster of affiliations.

Informal Organization

Informal Organization
Informal Leader The leader of an informal organization is
elected by the members of the groups
for different reasons such as age,
seniority, technical, competence, work
location, and responsive personality, etc.
depending upon the work situation.
Role of Informal Leader:
a) To help the group reach its goals, and
b) To maintain and enhance group life.

Characteristics of Informal
Organization:
Evolving constantly

Excellent at motivation

Treats people as individuals

Flexibility
Difficult to pin down
Essential for situations that change quickly or
are not yet fully understood

Functions of Informal
Organization:

Perpetuate the cultural

and social values.

Provide social status and

satisfaction.

Functions of Informal
Organization:

Provide social control

Promote communication among

members

Benefits of Informal
Organization:

Better Total System

Lighter workload for management

Work group satisfaction

A safety valve for emotions
Cohesiveness
Channel of employee communication
To plan and act more carefully
Encourage Cooperation
Encourage improved management practice

Problems Associated with

Informal Organization:

1) Resistance to change
2) Role conflict
3) Rumor
4) Conformity
5) Undermine discipline
6) Power politics
7) Interpersonal and intergroup
conflicts

Difference between.....
BASIS

FORMAL

INFORMAL

Definition

has its own rules and

regulation that must be
followed by the
members (employees
and managers)
has a system of coordination and authority.

does not have its own

rules and regulation.
has no system of coordination and authority
doesn't have any
superior-subordinate
relationship.
communication is done
through the grapevine

Formed by

formed by the top level

management

formed by social forces

within the formal
organization

Rules and regulations

The members have to

follow certain rules and
regulations. These rules
are available in writing .
They are made by a
formal authority

do not have to follow

any rules and
regulations

Cntd...
BASIS

FORMAL

INFORMAL

Duties and
responsibilities

the duties,
responsibilities,
authority and
accountability of each
member is well-defined

there are no fixed

duties, responsibilities,
authority,
accountability, etc. for
the members

Goals or objectives

The objectives or goals

are specific and welldefined
The main objectives
include productivity,
growth, and expansion

The objectives are not

specific and well-defined
They want to achieve
friendship, security,
common interest,
individual and group
satisfaction, etc

Benefits

The members get

financial benefits and
perks like wages or
salaries, bonus,
travelling allowances,

The members get social

and personal benefits
like friend circle,
community, groups, etc.

WHAT STRUCTURE IS NEEDED

Peter F. Drucker suggested three
ways
Activities analysis
Decision analysis
Relations analysis

Activities analysis
The activities may be identified and
listed
in
their
order
of
importance.
Then the whole work is to be
divided and sub-divided into
smaller
homogenous
and
manageable units for assignment to
persons working in the organization.
This
process
leads
to
standardization,
division
of

Decision analysis
The decision analysis is another method to find out
what structure is needed. This involves two
steps. They are
1. To identify major decisions which are needed to
obtain the performance necessary to attain the business
objectives; and
2. To classify the decisions according to type and
character.

The decision-making powers are entrusted to

various people in the organization. The authority of
decision-making may be spread out so much that
all units are almost independent of each other

ORGANISATIONAL CHART

Relations analysis The relations analysis tells us the

formal relationship of a manager
with his superiors, subordinates
and other managers of equal rank.
Thus, relationships have to be studied
from three angles upward
downward and
sideways.

ORGANISATIONAL CHART
It is a simple diagrammatic method of
describing an organisation structure.
Organisation structure of a company can
be shown in a chart. Such chart indicates
how
different
departments
are
interlinked on the basis of authority and
responsibility.
It indicates how the departments are
linked together on the basis of
authority and responsibility

Definition of Organisation Chart

According
to
George
Terry,
Organisation
chart
is
"a
diagrammatical form which shows
important aspects of an Organisation,
including the major functions and their
respective relationships, the channels
of supervision and the relative
authority of each employee who is incharge of each respective function".

 Advantages of Organisational
Chart
Limitations of Organisational
Chart
Details are not provided:
Informal relationship is not
shown:
Updated position is not
Fosters buck-passing
Lacks flexibility:
Creates rank consciousness:

Types of O-Charts
Line or Direct
Functional
Organizational
Chart
Line and Staff
Organizational
Chart
Committee
Organizational
Chart

a simple line organization

The line organization is the simplest
organizational structure.
It is the "doing" organization, in that
the work of all organizational units is
directly involved in producing and
marketing the organization's goods
and services.

There are direct vertical links

between the different levels of the
scalar chain.

a simple line organization

LINE AND STAFF

ORGANIZATION
When staff specialists are added to a line organization
to "advise; "serve; or support" the line in some manner,
we have a line and staff organization.
These specialists contribute to the effectiveness and
efficiency of the organization.
Their authority is generally limited to making
recommendation to the line organization.
Sometimes this creates conflict.
However, such conflict can be reduced by having staff
specialists obtain some line experience, which will tend to
make them better understand the problems facing the line
managers they support.
Such functions as human resources management and
research and development are typical staff functions

LINE AND STAFF

ORGANIZATION

Functional organization structure

Activities are grouped together by common function
from the bottom to the top of the organization
(e.g. manufacturing, research and development,
marketing, finance...)
It is applied in:
small and middle companies
if company produces one or several similar products
by using same technology for the same market (oil,
Advantages:
Problems:
sugar,
cement, beer)
high level of specialization
slow adjustment to changes in the
unique coordination of jobs in the
environment
same function
there is no cooperation and team work
applying one-way models and
among functional managers
procedures
slow and inadequate decision making
rational use of space and equipment
starched line of coordination and
low overhead expenses
communication

COMMITTEE ORGANIZATION
When a group of people is formally
appointed to consider or decide certain
matters, this type of structure is a committee.
Committees can be permanent (standing) or
temporary and usually supplement line and staff
functions.
Sometimes
ad
hoc
or
temporary
committees are set up to deal with a specific
problem.
Once
this
committee
makes
its
recommendations, it is dissolved.

 On the other hand, permanent committees usually act in an

advisory capacity to certain organizational units or managers.
For example, committees are used to a large extent in
universities. They may report to a dean or department chair.
Certain committees, called plural committees, have the
authority to order, not only to recommend.
These committees are usually reserved for a very high level,
such as the board of directors.
An example is an executive committee of the board for
compensation or for succession planning.
Although committees have a number of advantages, they also
have a number of disadvantages, particularly being
excessively time consuming.
Hence they should be managed effectively.

Network Structures
Considerable autonomy among its
functional and programming units.
A small core infrastructure that
provides certain services needed by
all.
Highly responsive and fluid
approaches.
Flexible coordination approaches
among component organizations as
needed.
Decision-making occurring within
the context of the strategic alliance
among the partners

CONTINGENCY APPROACH
most appropriate organizational structure
depends not only on the organizational
objectives but also on the situation,
which includes

the environment,
the technology employed,
the rate and
pace of change,
the managerial style,
the size of the organization, and
other dynamic forces.

Organisational
culture
A social glue/
a
fuzziness
binding
together
through
Shared
symbols,
Languages
Stories and
Practices.

A process of transforming
the
outsiders
into
accepting the insiders.--through
orientation
programmes and story
telling!
11th commandment in
3m- Thou shalt not kill
a new product idea!
Scotch Brand Masking
Tape- Name Scotch

Staffing: Nature and Process of Staffing Importance of

staffing.

According to Theo Haimann, Staffing pertains

to recruitment, selection, development and
compensation of subordinates.
They supply the
The performance of the organization largely
depends on the quality of its people.
Hence the staffing function of the
management is an important function and it
involves in the building of the organizational
workforce.

Challenge???
the management is faced with the
challenge of not only finding the
right person for each job but also
to match the personnel with the
jobs identified and
to provide for their long-range
growth and welfare as members of
the organization.

In Short staffing is

acquiring,
developing,
employing,
appraising,
remunerating and
retaining people
the right type of people & available at
the right positions and at the right
time in the organization.

Nature of Staffing Function

Staffing
is
an
important
managerial
function-Staffing function is the most important
managerial act along with planning, organizing, directing
and controlling. The operations of these four functions
depend upon the manpower which is available through
staffing function.
Staffing is a pervasive activity-As staffing function is
carried out by all mangers and in all types of concerns
where business activities are carried out.
Staffing is a continuous activity-This is because
staffing function continues throughout the life of an
organization due to the transfers and promotions that
take place.

 The basis of staffing function is efficient management of

personnels-Human resources can be efficiently managed by a
system or proper procedure, that is, recruitment, selection,
placement, training and development, providing remuneration, etc.
Staffing helps in placing right men at the right job. It can be
done effectively through proper recruitment procedures and then
finally selecting the most suitable candidate as per the job
requirements.
Staffing is performed by all managersdepending upon the
nature of business, size of the company, qualifications and skills of
managers,etc.
WHO DOES THIS WORK?

In small companies, the top management generally performs this function.

In medium and small scale enterprise, it is performed especially by the
personnel department of that concern.

Staffing Process - Steps involved in

Staffing
1. Estimating Manpower Requirements
2. Recruitment
3. Selection
4. Placement and orientation
5. Training and Development
6. Performance Appraisal
7. Promotion
8. Compensation
9. Separation!

Staffing Process - Steps involved in Staffing

Manpower requirements-The very first step in
staffing is to plan the manpower inventory required
by a concern in order to match them with the job
requirements and demands. Therefore, it involves
forecasting and determining the future manpower
needs of the concern.
Recruitment-Once the requirements are notified, the
concern invites and solicits applications according to
the invitations made to the desirable candidates.
Selection-This is the screening step of staffing in
which the solicited applications are screened out and
suitable candidates are appointed as per the
requirements.

 Orientation and Placement-Once screening

takes place, the appointed candidates are
made familiar to the work units and work
environment
through
the
orientation
programmes. placement takes place by putting
right man on the right job.
Training and Development-Training is a part of
incentives given to the workers in order to develop
and grow them within the concern. Training is
generally given according to the nature of
activities and scope of expansion in it.

 Remuneration-It is a kind of compensation

provided monetarily to the employees for
their work performances. This is given according to
the nature of job- skilled or unskilled, physical
or mental, etc. Remuneration forms an important
monetary incentive for the employees.
Performance Evaluation-In order to keep a
track or record of the behaviour, attitudes as
well as opinions of the workers towards their
jobs regular assessment is done to evaluate
and supervise different work units in a concern.

 Promotion
and
transfer-Promotion is said to be
a non- monetary incentive in
which the worker is shifted from a
higher
job
demanding
bigger
responsibilities as well as shifting the
workers and transferring them to
different work units and branches of
the same organization.

 Separation:
It is the last step in the process of
staffing. It means separating the
employees from their job. This take
place in four ways i.e. through
retirement,
termination,
retrenchment or death.

Importance of staffing.
Staffing helps in discovering
and
obtaining
competent
personnel for various jobs.
It helps in the optimum
utilization
of
the
human
resources.
It
helps
in
developing
professionals in every field of
organizational activity.

 It helps to improve the quantity and

quality of the output by putting the
right person on the right job.
It helps in developing competencies
in the organization to face the
challenges.
It helps to improve job satisfaction
of the employees and hence their
morale.

 It facilitates higher productive

performance
of
the
organization by appointing right
man for right job.
It
reduces
the
cost
of
manpower by eliminating the
wastage
of
the
human
resources.

 It
facilitates
growth
and
diversification activities in the
organization.
It provides for the development
of the employees and through
them it ensures continuous
survival and growth of the
organization.

 I think about this in hiring, because

our business all comes down to
people. In fact, when Im interviewing
a senior job candidate, my biggest
worry is how good they are at hiring.
I spend at least half the interview on
that.
Jeff Bezos, CEO, Amazon