Span of Control: 5 Determining Factors For Leaders

5 factors to determine optimal managerial span of control. Learn how to determine the optimal span of control to maximize efficiency.

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Estimated reading time: 10 minutes

Span of control! According to McKinsey, 68% of managers feel overwhelmed by their workload, and it’s no wonder!

The number of people we manage can make or break our effectiveness as leaders.

I’ve spent fifteen years helping organizations manage their management structure. Here’s what I’ve learned: the perfect span of control isn’t about hitting a magic number.

It’s about finding the sweet spot where both managers and employees thrive.

Some tech giants like Google experimented with having managers oversee 30+ employees. They discovered that quality of leadership dropped dramatically.

Others went too lean and created bottlenecks.

Span of Control
Photo by Mpho Mojapelo on Unsplash

What is the “Span of Control”?

The management span, also known as the span of control, is the number of subordinates a manager can effectively direct. It is a cornerstone of management theory and involves centralizing decision-making to one point. It helps employees feel accountable and motivated and allows the manager to give supervision of multiple projects.

5 Factors to Find Optimal Managerial Span of Control

Time needed: 5 minutes

Several factors decide the optimal span of control for managers. Let’s discuss these Five critical factors.

  1. Employee Competence and centralization

    The more skilled your workers are, the less help they need. Think of it like a teacher in a classroom. A teacher can handle more students when they already know how to read and write well. When workers know their jobs inside and out, one manager can lead more people.

    Here is a simple way to think.
    – High skill level = 15-20 employees per manager.
    – Basic skill level = 5-7 employees per manager.

    But, in larger organizations, a wide span is in effect to reduce operating costs is cost-effective. For example, large firms usually slash staff costs by pruning the number of reports per manager.

    We see this happen in the form of layoffs.

  2. Managerial Experience and delegation

    New managers are like new drivers – they need to start slow. As managers gain experience, they get better at sharing tasks with their team. A manager who has led teams for many years can handle more people than someone who just started.

    Here’s a basic guide.
    – New managers (0-2 years) = 3-5 employees.
    – Experienced managers (3+ years) = 8-12 employees.
    – Senior managers (7+ years) = 15+ employees.

    Organizations like McKinsey allow staff personnel to help managers in routine job tasks and repetitive decisions. 

  3. Organisation Structure and supervision

    Think of your organization like a family tree. The simpler the tree, the easier it is to manage. When work flows smoothly from top to bottom, managers can oversee more people.

    But if there are many branches and complex relationships, managers need smaller teams.

    For example,
    – Simple structure (2 levels) = 1 manager per 10-15 people.
    – Complex structure (4+ levels) = 1 manager per 5-8 people.

    Use this Company Culture Calculator to check how good is your company culture.

  4. Communication Technology in organization

    Good tools make work easier. When a company has great communication tools like chat apps and project software, managers can keep track of more people.

    It’s like having a megaphone – you can reach more people at once! Modern tech can help managers handle.
    – With basic email only = 5-7 employees.
    – With full digital tools = 15-20 employees.

    Overall, communication techniques has allowed organizations to engage employees in multiple roles and tasks. But at the same time reduce overall management overhead.

    Check out this free Employee Engagement Tool.

  5. Level of autonomy (Decision-Making ability)

    When workers can make their own smart choices, managers don’t need to watch them as closely. It’s like having responsible kids who can do their homework without being told.

    The more independent the workers are, the more people one manager can lead.
    – Low autonomy = 4-6 employees per manager.
    – Medium autonomy = 8-12 employees per manager.
    – High autonomy = 15-25 employees per manager.

    For example, teams with a lot of decision-making authority need a higher span of control.

    But, organizations should aim for an optimal span of management that balances efficiency with complexity. This ensures that each team is adequately supported. It will help improve organizational performance and foster strong team morale.

Simple Formula for Calculating Base Span of Control:

Base Span = (Employee Skill Level × Communication Tech Level × Autonomy Level) ÷ (Complexity Level × Required Supervision Level)

Span Of Control Formula
Span Of Control Formula

Optimal Span of Control Guideline: Finding the Perfect Fit for Your Organization

Size of TeamNature of WorkOptimal Team SizeHierarchy TypeFormula
(# of employees)
SmallComplexNarrowTall3-6
SmallSimpleWideFlat7-10
MediumComplexNarrowTall5-9
MediumSimpleWideFlat10-15
LargeComplexNarrowTall7-12
LargeSimpleWideFlat15-20

Optimal Span of Control Guideline

Note:

  • Size of Team: Refers to the number of subordinates reporting to a single manager.
  • Nature of Work: Refers to the complexity of the work being performed.
  • Optimal Team Size: The number of subordinates a manager can effectively supervise based on the team size and work type.
  • Hierarchy Type: The organizational structure, which can be either tall (many levels of management) or flat (few levels of management). The optimal span of control is narrower in tall organizations and wider in flat organizations.
  • Formula: Optimal team size estimate. The values provided are estimates and can vary depending on the specific organization and context.

Some extra criterion that you can consider is – Skill sets, Timeframe, Resources, Communication.

Benefits of Having an Optimal Subordinate Span of Control

An optimal span of control (SOC) is the optimal number of people and tasks a manager has authority over. 

Here are some benefits you will see with the optimal span of control.

  • Improved Efficiency
  • Better Communication
  • Greater Employee Autonomy
  • Better Delegation of Tasks
  • Reduced Costs
  • Improved Innovation
Optimal Span Of Control
Optimal Span Of Control

Implications of the Span of Control for a Manager

Having too many or too few people to manage can make a big difference in how well a manager can do their job.

When managers have too many people to supervise, they feel like a juggler with too many balls in the air.

They miss important problems, take too long to make decisions, or fail to help their team members grow.

On the flip side, having too few people (a narrow span) can lead to micromanagement. It’s like having a parent who checks your homework too often!

The right span of control helps managers give each team member enough attention while still letting them work independently.

It also affects how quickly information moves up and down in the company. How much money the company spends on management, and how happy employees are at work.

Think of it like a family dinner table. You want it big enough for everyone to have space to eat, but small enough that everyone can still talk to all.

Frequently Asked Questions

1. What is Span of Control?

Span of control is the number of employees who report directly to one manager. Think of it as your manager’s “team size.” If you have 10 people reporting to a single supervisor, that supervisor has a span of control of 10. It’s a key measure of how work and authority flow through an organization.

2. How is Span of Control Calculated?

The basic formula is: Base Span = (Employee Skill × Communication Tech × Autonomy) ÷ (Work Complexity × Required Supervision).

Each factor is rated 1-5, where 1 is lowest and 5 is highest. But, this is just a starting point. Real-world numbers should be adjusted based on,

– Industry standards.
– Company size
– Management level
– Team location (remote vs. on-site)

3. How Does Span of Control Work?

Span of control works like a pyramid system in organizations:

– Top Level (CEO): Usually manages 4-5 direct reports
– Middle Management: Typically handles 6-12 employees
– First-Line Managers: Can manage 15-20 workers
– The span gets wider as you move down the organization
– Each level creates a reporting chain that connects workers to top leadership

4. How to Determine Span of Control?

Follow these steps to find the right span for your organization:

– Assess employee skill levels and independence
– Evaluate manager experience and potential
– Review your communication tools and systems
– Consider work complexity and decision-making needs
– Factor in geographic location and work hours
– Test different spans with pilot groups
– Watch performance and adjust as needed

5. How to Manage Span of Control?

Tips for effective span management:

1. Use Technology Wisely
– Implement project management tools
– Set up automated reporting systems
– Use communication platforms effectively

2. Delegate Strategically
– Assign team leads for specific projects
– Create clear decision-making frameworks
– Create standard operating procedures

3. Regular Review
– Check workload distribution monthly.
– Survey team satisfaction quarterly
– Track productivity metrics
– Adjust spans based on data

4. Support Systems
– Give management training.
– Set up peer support groups
– Create backup systems for peak times.
– Document best practices

Remember: The right span of control evolves as your organization grows and changes. Review and adjust regularly!

6. Why is Span of Control Important in Organizational Structure?

The Span of Control is crucial because it directly impacts the efficiency, communication, and decision-making processes within an organization. It affects how well managers can allocate resources, provide guidance, and maintain control over their teams.

7. What Factors Influence an Appropriate Span of Control?

Several factors influence the appropriate Span of Control. Complexity of tasks, employee skill level and experience, the manager’s abilities, and the organization’s culture and industry norms. Balancing these factors is essential for effective management.

8. What are the Pros and Cons of a Narrow Span of Control vs. a Wide Span of Control?

A narrow Span of Control (fewer subordinates per manager) allows for more hands-on supervision but lead to a more hierarchical and less agile organization. A wide Span of Control (more subordinates per manager) can increase efficiency but reduce individual attention and oversight. Understanding these trade-offs is vital for designing an effective structure.

9. How Can Organizations Determine the Optimal Span of Control?

Finding the optimal control span involves assessing the organization’s specific needs, goals, and resources. It needs analyzing the nature of tasks, the skills of managers, and feedback from employees. Benchmarking with industry standards can also give valuable insights.

10. What is span of control with an example?

Span of control refers to the number of subordinates or employees a manager can effectively supervise.

For example in a retail store chain. A regional manager with three store managers has narrow span of control, while one with ten store managers has wide span of control. This concept helps organizations decide how to structure management for optimal efficiency and supervision.

Conclusion

Numbers and formulas are helpful, but great management is an art as much as it’s a science. Start by evaluating where your organization stands on each of these five factors.

Be honest – really honest.

Then make small adjustments rather than sweeping changes. Track your results. Watch for signs of manager burnout or team disconnection.

Remember, what works for a startup fail in a Fortune 500 company. And what succeeds in manufacturing crash in creative industries.

The goal isn’t to copy someone’s formula – it’s to build a structure that lets your unique team shine.

Review your span of control quarterly, and don’t be afraid to adjust as your organization evolves.

Your managers (and their stress levels!) will thank you for it.

Pro Tip:

Create a simple quarterly check-in system.

Ask your managers to rate their current workload on a scale of 1-10 and track changes in team performance metrics.

If you see consistent scores above 8 or declining team results, it’s time to reassess your span of control.


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