What IsOrganizational Structure?Span of ControlThe number of subordinates a manager can efficientlyandeffectivelydirectConceptWider spans of management increase organizationalefficiencyEncouragementExpense ofIncreasedof overly tightadditionalcomplexity ofsupervision andlayers ofverticaldiscouragementmanagementcommunicationof employeeautonomyBCANarrow Span Drawbacks
What Is Organizational Structure? Narrow Span Drawbacks A B C Span of Control The number of subordinates a manager can efficiently and effectively direct Expense of additional layers of management Increased complexity of vertical communication Encouragement of overly tight supervision and discouragement of employee autonomy Concept Wider spans of management increase organizational efficiency
Contrasting Spans of ControlMembers at each level(Highest)AssumingAssumingspan of 8span of 411182464316ooa5124644,096525661,024Span of 8:7=4,096Operatives4,096Managers (Levels 1-4) =585Span of 4:=4,096OperativesManagers (Levels 1-6) = 1,365
Contrasting Spans of Control
What Is Organizational Structure?DecentralizationFormalizationCentralizationThe degreetoThe degree toThe degree towhichdecisionwhichdecisionwhichjobswithinmakingismakingisspreadthe organizationconcentratedatthroughout theare standardized.a singlepointinorganization.the organization
What Is Organizational Structure? The degree to which decision making is concentrated at a single point in the organization. The degree to which decision making is spread throughout the organization. The degree to which jobs within the organization are standardized. Centralization Decentralization Formalization