Question

“It refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure.”
Identify the concept of organization structure discussed in the above lines.

• A. Span of Management
• B. Functional Structure
• C. Divisional Structure
• D. Departmentalisation

Hint:

Span of Management directly governs the height and hierarchical levels of an organizational structure:
$\bullet$ Narrow Span $\rightarrow$ Tall structure (more levels).
$\bullet$ Wide Span $\rightarrow$ Flat structure (fewer levels).

Answer 1

The Correct Option is A

Concept:
Organizational design requires defining supervisory scope and reporting relationships.
The number of direct reports assigned to a manager shapes the overall organizational pyramid and determines whether the structure is tall or flat.

Step 1: Identifying the Defined Structural Parameter:
The statement defines the concept as “the number of subordinates that can be effectively managed by a superior.”
This is the definition of Span of Management (also termed Span of Control).

Step 2: Evaluating the Impact on Management Levels:
$\bullet$ A narrow span of control means a manager supervises fewer subordinates, creating more managerial levels and a taller organizational structure.
$\bullet$ A wide span of control means a manager supervises more subordinates, resulting in fewer hierarchical levels and a flatter organizational structure.
$\bullet$ Thus, the span of management determines the total number of administrative levels in an enterprise.

Step 3: Verification of Options:
Functional Structure and Divisional Structure are organizational designs based on functions and products, respectively.
Departmentalisation refers to grouping related activities into distinct units.
Span of Management is the specific concept defined in the statement.

Step 4: Final Answer:
Hence, the correct answer is option (A).