Advantages and disadvantages of a wide span of control

Advantages:
1. Less expensive (fewer managers/supervisors needed)
2. Less supervision = better worker motivation
3. Faster communication, faster decision-making
Disadvantages:
1. Fewer supervisors/ managers = less promotion opportunities (worker motivation may
decrease)
2. Less control over subordinates’ work (quality decreases)
3. Effective communication may be difficult (inefficient, mistakes can be made)
Advantages and disadvantages of a narrow span of control
Advantages:
1. Effective communication is easier (efficient, less mistakes)
2. Better control over workers and their work (quality improves)
3. More managers/ supervisors = more promotion activities (worker motivation may
improve)
Disadvantages:
1. Communication and decision-making is slower
2. More managers = more expensive for the business
3. More supervision = reduced worker motivation
Tall and flat organisational structures
Tall organisational structure: many levels of hierarchy
- Each level in a hierarchy is a layer of management
- Tall organisational structures have many layers (= many managers)
- Span of control for each manager is narrow (advantage, workers can be closely
supervised)
- The chain of command is long (disadvantage)
- Communication and decision making takes longer (due to many layers) (disadvantage)
Flat organisational structure: few levels of hierarchy
- Chain of command is very short (advantage)
- Communication and decision making are much faster (due to few layers) (advantage)
- Fewer managers = span of control for each manager is wide (disadvantage, workers
cannot be closely supervised)
Delayering
- Definition: reducing the size of the hierarchy by removing one or more levels (usually the
middle management levels) to save costs
Advantages and disadvantages of delayering
Advantages:
1. Reduces costs
2. Reduces the chain of command (communication and decision making faster and more
effective)
3. Wider span of control increases opportunities for delegation (helps develops workers’
skills and motivates workers)
4. Senior managers are in closer touch with what is happening in the business
Disadvantages:
1. Increased workload for managers (their tasks may not be completed, the quality of
decision making decreases)
2. Businesses may have to give redundancy pay to managers who lose their jobs (business
costs may increase)
3. Workers that didn’t lose their jobs will have a fear of redundancy (being laid off), their
job security will be reduced (less motivation among workers)
4. Wider span of control (reduce effective management of staff in the business, quality of
workers reduced)
Centralised or decentralised
1. Centralised organisation (definition): an organisation where all important decision
making power is at the top (head office) or the centre
Advantages and disadvantages of a centralised organisation
Advantages:
1. Decision making is often quicker
2. Decisions are taken for the benefit of the whole business
3. Greater use of specialist staff improved the quality of decision making
Disadvantages:
1. Slower communication
2. Unable to respond quickly to changes in local markets
3. May reduce worker motivation (they will think that they are not trusted with decision
making)
 2. Decentralised organisation (definition): an organisation where decision making powers
are passed down the organisation (or delegated) to lower levels
Advantages and disadvantages of a decentralised organisation
Advantages:
1. Decisions are made based on local needs
2. Can be used to train junior managers
3. Delegation helps to improve worker motivation
Disadvantages:
1. Decisions taken might not be in the interest of the whole business
2. Poor decisions might be made because the managers lack skills and experience
Roles, responsibilities and inter-relationships
Directors and Chief Executive Officers (CEO)
- They are the most senior level of management in any company. Their functions include:
1. Setting strategy (long term plans) for the business
2. Making sure resources are available for achieving objects
3. Reviewing the performance of managers
4. Protecting the interests of shareholders and other stakeholders
5. Providing leadership to ensure the success of the business
Managers
- Day to day running of a department is the responsibility of a manager. The main
responsibilities of a departmental manager include:
1. Making sure that the decisions of directors are carried out
2. Delegating tasks to members of their departments
3. Taking the decisions needed to achieve departmental targets
4. Motivating workers in the department so that they work hard
5. Solving day to day problems that may arise within the department.
Supervisors
- Responsible for giving out tasks to workers, making sure they carry out the tasks and
checking the quality of their work.
Other workers
- Their functions include:
1. Completing their tasks efficiently and at the required standard set by managers
2. Working towards achieving individual, group or departmental targets.
The role of management
- In most organizations managers are responsible for:
1. Setting objectives
2. Motivating workers
3. Making sure workers have the resources they need to complete their tasks
Functions of management
1. Planning
2. Organising
3. Commanding
4. Coordinating
5. Controlling
Managers also need to:
- Understand the people who work for them
- Set a good example
- Treat subordinates fairly
- Delegate tasks
- Communicate efficiently
Delegation
- Delegation is the giving of authority to subordinates to make decisions and complete
tasks. Successful delegation requires workers not only be given authority to complete the
tasks, but also the resources and cooperation of other workers.
- Some managers don’t like delegation because:
1. By delegating tasks, they may fear that they will lose control of decision making
2. May feel threatened by subordinates who can complete a task to a better standard than the
manager
However, if the issues of trust and control are overcome, delegation can benefit both the manager
and subordinates:
- Managers have more time to focus on more complex tasks of greater importance
- It can motivate workers who are given the opportunity to take on responsibility and
develop their skills
- Delegation is a way of developing the skills of workers and increasing the flexibility of
the workforce
- The quality of work is often improved because lower level workers have better skills than
their managers in completing certain tasks.
Leadership styles
1. Autocratic Leadership Style
- An autocratic leader will make all the decisions without any discussion with others.
- The leader decides all objectives and how these will be achieved.
- Disadvantages: Worker motivation is likely to be low and they will require close
supervision as autocratic leaders are more interested in the completion of tasks than the
welfare and motivation of their workers.
- Advantages: Faster decision-making, well-suited to situations that require an immediate
response.
2. Democratic Leadership Style
- The opposite of an autocratic leader is a democratic leader.
- This type of leader will discuss with workers before making any decisions (workers take
part in decision making)
- Quality of decision making may be improved, especially when workers are more
experienced than the leader.
- Communication is two-way, with workers having the opportunity to start the discussion
as well as provide feedback to the leaders’ suggestions.
- Advantages: More likely to motivate workers as there is more delegation and the workers
feel that they are trusted and their opinions are respected. There is no need for close
worker supervision and quality of decision making may improve as well.
- Disadvantages: Only useful and effective if the workforce is skilled, experienced and
keen to be involved in decision-making.
3. Laissez-faire Leadership Style
- A leadership style where most of the decision-making is left to the workers.
- There is very little or no input from the leader or the management.
- The leader will only provide a coordinating and a supporting role.
- This leadership style could mostly be effective in creative tasks (for e.g. research and
development)
Choosing a leadership style:
Choosing the most ideal leadership style differs from business to business, but generally depends
on:
1. The skills and experience of the workforce: the more skilled and experienced the
workforce is, the less important it is for managers to make all the decisions (a democratic
leadership style may be best in that case)
2. The time available to make a decision: if the decision needs to be taken quickly, there is
no time to discuss with the workplace, then an autocratic leadership style may be best. If
there is more time to consult with workers in making decisions, a more democratic
leadership style may be suitable.
3. The personality of the manager: some managers can be naturally autocratic; some can be
naturally democratic
4. The task to be completed: the nature of the task may require different leadership styles
- Sometimes, managers have to use different styles in different circumstances.
Trade Unions
- Definition: An organization formed and financed by workers for the purpose of
protecting the interests of its members and improving their pay and working conditions.
- Trade unions help their members by carrying out the following:
1. Negotiating with employers to improve pay and working conditions (main role of trade
unions);
2. Resolving conflict;
3. Providing legal support and advice;
 4. Providing services for members.
Benefits of joining trade unions
- Workers who join a trade union have greater power when dealing with employers than if
they were to do as individuals through collective bargaining.
- Trade unions provide support and legal advice to members, this can be expensive for
some workers to afford themselves.