[Solution] Reporting Relationships
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Author: Sarah Bennett
Organizations need to determine the hierarchy of positions in the organizational structure, as well as how many positions report to which supervisor. These decisions have significant implications for the organizational structure and culture.
Chain of Command
The chain of command comprises the formal lines of authority in an organization. It has two components:
- Unity of command: Each person in the organization has exactly one supervisor.
- Scalar principle: There is an unbroken line of authority from the lowest positions to the highest, with the person in the highest position ultimately responsible for the actions of every person in the organization.
Traditional Chain of Command
Span of Management
The span of management (or span of control) refers to the number of employees who report directly to a given manager. This can vary widely:
- Wide span of management: Many direct reports per manager (potentially 20-30 or more)
- Narrow span of management: Few direct reports per manager (typically 3-7)
Factors that influence the appropriate span of management include:
- Complexity of the work being supervised
- Physical proximity of employees to manager
- Manager's other responsibilities
- Employees' skill levels and autonomy
- Frequency of new or non-routine situations
- Organizational culture and need for control
Tall Versus Flat Organizations
Organizations vary in their vertical structure:
- Tall organizations have many levels of management, with narrow spans of control
- Flat organizations have fewer management levels, with wider spans of control
Each structure has advantages and disadvantages:
- Tall organizations offer closer supervision and more promotion opportunities but may have slower decision-making and higher administrative costs
- Flat organizations typically have faster communication, lower administrative costs, and more employee empowerment but may provide less guidance and fewer promotion opportunities
Select the terms that best complete the following sentences.
If each employee in an organization has exactly one supervisor, the organization has .
View Explanation
An organization in which each employee has exactly one supervisor is following the principle of unity of command. This is one component of the chain of command. Historically, unity of command has been thought to be necessary for effective operations. Today, however, many organizations use more complex reporting structures. Whether an organizational structure is tall or flat is determined by how many levels of authority it has and how many employees report to supervisors on average.
When a supervisor has many direct reports, the supervisor has a .
View Explanation
With a wide span of management, supervisors have many employees reporting to them. In general, this is more common at lower levels in organizations where work is more routine.
Select the correct response(s) to the following question.
Which of the following factors suggest that an organization would benefit from a narrow span of management? Check all that apply.
- The work of the organization requires little communication between employees and their managers.
- Employees and their managers work in a single location.
- New situations arise frequently, calling for collaboration between staff and their managers.
- Managers have number of responsibilities which are both functional and supervisory.
- The culture is one that prioritizes formal authority and gives lower-level employees little discretion to act.
View Explanation
In general, the conditions that favor a narrow span of management are those that require subordinates to act in close coordination with their managers. For example, when new situations arise, subordinates may need to get guidance from their managers, thus requiring more interaction. The design of manager jobs also plays a role, since if managers have many responsibilities other than supervising people, they cannot effectively supervise a large number of reports. Culture is an important factor as well: a culture that emphasizes getting approval from higher up the chain of command before acting means more interactions between subordinates and managers and requires a narrow span of control.
When work requires little interaction, or if interaction is easy because managers and subordinates are physically nearby each other, then there is less need for a narrow span of management.
Select the word that best completes the following sentence.
The company restructures to give each manager fewer direct reports and to have more levels of managers in the chain of command, thereby becoming a organization.
View Explanation
By adding more levels of managers in its hierarchy, this organization is adopting a taller structure.
