Universality of management

Definition (1):

The universality of management is the concept that all managers do the same job regardless of the title,
position, or management level: they all execute the five management functions and work through and
with others to achieve organizational goals.

Definition (2):

“Universality of management means that the principles of management are applicable to all types of
organizations and organizational levels.” It indicates that the managers apply the same management
principles and skills in all managerial positions held in different organizations. Universality means the
transferability of management skills across countries and industries. It indicates that management is
common in content and can be applied to all forms of organizations. So, an industrial manager can
manage a charitable organization, a retired army officer can manage a hospital, a civil servant can
manage an industrial company, and so on.

Certainly, the jobs of managers differ somewhat from one form of company to another because each
company type needs the application of specialized knowledge, survives in a unique operational and
political environment, and applies different technology. But there are similarities in managerial jobs
across companies since the basic managerial functions – planning, organizing, leading, controlling, and
implementing are common to all companies.

What is universality of management and why is it

important?
The concept of universality of management has several implications. First, managerial
skills are transferable from one person to another. Secondly, management skills can be
transferred from one organization to another. Thirdly, managerial skills can be
important and exported from one country to another.

Why is the principles of management Universal?

The principles of management are universal in nature that means they can be applied to
all types of organisations irrespective of their size and nature. Their results may vary
and application may be modified but these are suitable for all kinds of organisations.
Who gave the universality concept of management?
According to Peter Drucker, the skills, the competence, and the experience of
management cannot as such be transferred and applied to every type of institution.
Only analytical and administrative types of skills and abilities can be transferred. Thus,
management principles cannot be applied universally.
What is universal application in management?
According to the question Why Management is called Universal Application. According
to this concept of Universality of Management has several implications. Managerial
skills are transferable from one person to another person. Management skills can be
transferred to from one organization to other organization.

Do you think management principles are universal?

Principles of Management are Universal Management principles are applicable to all

kinds of organizations – business & non business. They are applicable to all levels of
management. Every organization must make best possible use by the use of
management principles. Therefore, they are universal or all pervasive.

What is the universal principle of strategic management?

Strategy management is a dynamic and continuous process. Be flexible. Be prepared to

make adjustments as competitors, customers and economic market conditions change.
Conducting regular team strategy meetings will highlight progress made and action
needed on key issues and opportunities.
What is transferability in management?
Hiring, compensating, training, evaluating and appraising, developing career paths, and
other human resource management tasks consume considerable management time
and cost significant sums of money. …
Are management principles universal?
Management principles are applicable to all kinds of organizations – business & non
business. They are applicable to all levels of management. Every organization must
make best possible use by the use of management principles. Therefore, they are
universal or all pervasive.

What is a universal phenomenon?

adj. 1 of, relating to, or typical of the whole of mankind or of nature. 2 common to,
involving, or proceeding from all in a particular group. 3 applicable to or affecting many
individuals, conditions, or cases; general. 4 existing or prevailing everywhere.

What is the universal principles of strategic management?

What are the principles of management outlined by fayol?
Authority – Managers must possess the authority to give orders, and recognize that
with authority comes responsibility. Unity of Command – Fayol wrote that “an employee
should receive orders from one supervisor only.” Otherwise, authority, discipline, order,
and stability are threatened.
What does it mean to have universality of Management?
Universality never means that one particular job should be performed by every manager.
But it means that all jobs have principles in common that must be followed by every
type of manager. Q: What is universality of management?

Why are management principles and knowledge not universal?

Some experts feel that management principles and knowledge do not have universal
application due to cross- cultural differences. They are also of the view that same
management skills cannot be applied in all situations and fields and the skills are not
transferable.

What are the universal principles of Integrated Management?

Universal Management Principles The following universal management principles were

first published in MSS 1000:2014 and underpinned its creation. They give further
elaboration to the definition of integrated management. At their core are three
foundation elements; consciousness, process and structure which are the essence of
an organization.
Can a management principle be applied to every type of organization?
According to Peter Drucker, the skills, the competence, and the experience of
management cannot as such be transferred and applied to every type of institution.
Only analytical and administrative types of skills and abilities can be transferred. Thus,
management principles cannot be applied universally.
Dr. Taylor’s Contributions to Management Thought

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Dr. Taylor’s Contributions to Management Thought!

In the evolution of management thought, scientific management as propounded by Dr. F. W. Taylor has
a definite place to reckon with. Opinions concerning the merits of Taylor’s contribution to the scientific
management movement differ very widely — some pay him high tributes, others criticize him as the
recipient of undue credit.

But it must be admitted that his work had “an explosive impact on industrial productivity.”

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His work went a long way in management thought. “Many of his ideas were fundamental and have
stood the test of time, especially the idea of applying scientific methods of enquiry and experiment first
to production problems and then to management as a whole (Kempner).”

Professor Kempner observes:

“In this area Taylor was an innovator of outstanding fruitfulness.” Many of his ideas brought system,
order and logic to areas where previously rule of thumb had prevailed — production planning, analysis
of costs, systems of payment and many more. If he did not always invent such systems, he did carry
them several stages further. Even Lenin praised Dr. Taylor.

He wrote in Pravda “We should try out every scientific and progressive suggestion of Taylor system.”

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Taylor’s contribution can be summed up as under:

1. Application of scientific principles to the problems of management.

2. “He was the first to state that it was the duty of management to tell the workers what was expected
of them” — Haimann.

3. “He was the first to specify the way in which the job is to be performed” —Haimann.

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4. Ushering in of mental revolution on the part of employers and employees both.

5. He was the first man in the history of management thought to use systematic experiments of time
and motion study.

6. Planning of work separated from its execution was first introduced by him.

7. “Functional foremanship” concept was first coined and introduced by Taylor in management thought.

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Taylor summed up his contribution in the following words:

Science and not rule of thumb Harmony not discord Co-operation, not individualism Maximum output in
place of restricted output. The development of each man to his greatest efficiency and prosperity.
Dr. Taylor’s contribution to management philosophy can best be appreciated in his human approach. It
was his unprecedented contribution to the management thought that to have the best from an em-
ployee the maximum incentive should be given not only in terms of money but also through employer—
employee relationship.

However criticised, Scientific Management has definitely marked out a place in management thought
which no authority could challenge — a new concept that had never before been conceived. Nothing is
an unmixed blessing in this world — so Scientific Management concept cannot be an exception. It has
given much more than it has taken away from the business management.

Management by objectives (MBO) is a strategic management model that aims to improve the

performance of an organization by clearly defining objectives that are agreed to by both management
and employees. According to the theory, having a say in goal setting and action plans encourages
participation and commitment among employees, as well as aligning objectives across the organization.

KEY TAKEAWAYS

 Management by objectives (MBO) is a process in which a manager and an employee agree on

specific performance goals and then develop a plan to reach them.

 It is designed to align objectives throughout an organization and boost employee participation

and commitment.

 There are five steps: Define objectives, share them with employees, encourage employees to
participate, monitor progress, and finally, evaluate performance and reward achievements.

 Critics of MBO argue that it leads to employees trying to achieve the set goals by any means
necessary, often at the cost of the company.

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Management by Objectives

Understanding Management by Objectives (MBO)

Management by objectives (also known as management by planning) is the establishment of

a management information system (MIS) to compare actual performance and achievements with the
defined objectives. Practitioners claim that the major benefits of MBO are that it improves employee
motivation and commitment and allows for better communication between management and
employees.

However, a cited weakness of MBO is that it unduly emphasizes the setting of goals to attain objectives,
rather than working on a systematic plan to do so. Critics of MBO, such as W. Edwards Deming, argue
that setting particular goals like production targets leads workers to meet those targets by any means
necessary, including shortcuts that result in poor quality.1

In his book that coined the term, Peter Drucker set forth several principles for MBO.2 Objectives are laid
out with the help of employees and are meant to be challenging but achievable. Employees receive daily
feedback, and the focus is on rewards rather than punishment. Personal growth and development are
emphasized, rather than negativity for failing to reach objectives.

MBO is not a cure-all but a tool to be utilized. It gives organizations a process, with many practitioners
claiming that the success of MBO is dependent on the support from top management, clearly outlined
objectives, and trained managers who can implement it.

Management by Objectives (MBO) in 5 Steps

MBO outlines five steps that organizations should use to put the management technique into practice.

1. Either determine or revise organizational objectives for the entire company. This broad overview
should be derived from the firm’s mission and vision.

2. Translate the organizational objectives to employees. In 1981, George T. Doran used the

acronym SMART (specific, measurable, acceptable, realistic, time-bound) to express the
concept.3

3. Stimulate the participation of employees in setting individual objectives. After the organization’s
objectives are shared with employees from the top to the bottom, employees should be
encouraged to help set their own objectives to achieve these larger organizational objectives.
This gives employees greater motivation since they have greater empowerment.

4. Monitor the progress of employees. In step two, a key component of the objectives was that
they are measurable for employees and managers to determine how well they are met.

5. Evaluate and reward employee progress. This step includes honest feedback on what was
achieved and not achieved for each employee.4

The term “management by objectives (MBO)” was first used by Peter F. Drucker in his 1954 book
titled The Practice of Management.

Advantages and Disadvantages of Management by Objectives (MBO)

MBO comes with many advantages and disadvantages.

Advantages

 Employees take pride in their work and are assigned goals they know they can achieve that
match their strengths, skills, and educational experiences.
  Assigning tailored goals brings a sense of importance to employees, boosting their output and
loyalty to the company.

 Communication between management and employees is increased.

 Management can create goals that lead to the success of the company.

Disadvantages

 As MBO is focused on goals and targets, it often ignores other parts of a company, such as the
culture of conduct, a healthy work ethos, and areas for involvement and contribution.

 Strain is increased on employees to meet the goals in a specified time frame.

 Employees are encouraged to meet targets by any means necessary, meaning that shortcuts
could be taken and the quality of work compromised.

 If management solely relies on MBO for all management responsibilities, it can be problematic
for areas that don’t fit under MBO.

What is the goal of management by objectives (MBO)?

Management by objectives (MBO) uses a set of quantifiable or objective standards against which to
measure the performance of a company and its employees. By comparing actual productivity to a given
set of standards, managers can identify problem areas and improve efficiency. Both management and
workers know and agree to these standards and their objectives.

What is an example of MBO?

A company can set various goals with its employees. In the case of a call center, an MBO could be to
increase customer satisfaction, say, by 10%, while reducing call times by one minute. The onus is now on
finding ways to achieve this goal. Once that’s decided on, it’s important to get employees on board and
then monitor their progress, provide feedback, and reward those who do a good job.

What are some drawbacks of using MBO?

As MBO is entirely focused on goals and targets, it often ignores other parts of a company, such as the
corporate culture, worker conduct, a healthy work ethos, environmental issues, and areas for
involvement and contribution to the community and social good.

What is the difference between MBO and management by exception (MBE)?

In management by exception (MBE), management only addresses instances where objectives or

standards are transgressed. Thus, workers are left alone until and unless proficiency is not met.

The Bottom Line

As a theory, MBO makes a lot of sense: Help employees to get involved in setting company goals and
they are more likely to share management’s objectives, work harder, and deliver.

However, there’s also a good reason why MBO is widely criticized. Like most things that look good on
paper, it doesn’t always work in practice. The key is to be aware of its drawbacks, customize the plan
according to your organization, and make sure that everyone is fully on board and that the objectives
are clear and reasonable before commencing.

he 6 steps of the MBO process are;

Define organizational goals

Define employees objectives

Continuous monitoring performance and progress

Performance evaluation

Providing feedback

Performance appraisal

Let’s briefly look at each of these;

Define Organizational Goals

Goals are critical issues to organizational effectiveness, and they serve a number of purposes.
Organizations can also have several different kinds of goals, all of which must be appropriately managed.

And a number of different kinds of managers must be involved in setting goals. The goals set by the
superiors are preliminary, based on an analysis and judgment as to what can and what should be
accomplished by the organization within a certain period.

Define Employees Objectives

six steps of MBO process

After making sure that employees’ managers have informed of pertinent general objectives, strategies
and planning premises, the manager can then proceed to work with employees in setting their
objectives.

The manager asks what goals the employees believe they can accomplish in what time period, and with
what resources. They will then discuss some preliminary thoughts about what goals seem feasible for
the company or department.

Continuous Monitoring Performance and Progress

MBO process is not only essential for making line managers in business organizations more effective but
also equally important for monitoring the performance and progress of employees.

For monitoring performance and progress the followings are required;

Identifying ineffective programs by comparing performance with pre-established objectives,

Using zero-based budgeting,

Applying MBO concepts for measuring individual and plans,

Preparing long and short-range objectives and plans,

Installing effective controls, and

Designing a sound organizational structure with clear, responsibilities and decision-making authority at
the appropriate level.

Performance Evaluation

Under this MBO process performance review is made by the participation of the concerned managers.

Providing Feedback

The filial ingredients in an MBO program are continuous feedback on performance and goals that allow
individuals to monitor and correct their own actions.

This continuous feedback is supplemented by periodic formal appraisal meetings in which superiors and
subordinates can review progress toward goals, which lead to further feedback.

Performance Appraisal

Performance appraisals are a regular review of employee performance within organizations. It is done at
the last stage of the MBO process.
The process of MBO involves 6 key steps that incorporate managerial plans in such a systematic way,
which is directly influenced by the efficient and effective achievement of individuals and organizational
objectives.

In case you want to analyze the practical importance of Management by Objectives, then it is good to
summarize all the objectives of the organization together with individual goals.

The 6 steps involved in the process of MBO are determining organizational goals, determining
employees’ objectives, constantly monitoring progress and performance, performance evaluation,
providing feedback, and MBO performance appraisal.

The 6 steps of the MBO process are:

1. Determining Organizational Goals

2. Determining Employees’ Objectives

3. Constant Monitoring Progress and Performance

4. Performance Evaluation

5. Providing Feedback

6. The Performance Appraisal

Let’s now go into the depth of each step of MBO and find out what the process of MBO is actually?

1. Determining Organizational Goals – Setting Organizational Purpose

In this picture: Top management working together
The very first step in the MBO process is defining organizational goals. These goals must be clear and
concise and different kinds of managers must involve when settings goals. Goals can be either long-term
goals or short-term goals.

These goals are concerned with organizational growth, profit, and production, etc.

The entire development of an organization depends on the set goals. A goal is the most critical and
necessary factor behind the effectiveness and efficiency of an organization, so it is important to
effectively manage set goals either single or many different kinds.

Before working on the set goals, the managers should determine organizational goals by aiming to
create potential management that must be capable of handling various kinds of goals easily.

Determining goals don’t mean creating goals, as the preliminary goals are set by the top-level
supervisors based on in-depth analysis and judgment about what should be accomplished and how to
do so in a certain period.

Organizational goals transmit through different goal-setting sessions where all the contributors have
agreed upon. For example, first of all, the supervisor defines his goal and action plan. Then he/she meets
his/her subordinates and tells them the action plan and the goals.

Once subordinates agree upon the objectives and action plan of their supervisor, they then meet their
workers and operating staff to explain the objectives and action plan.

George Odiorne says an MBO program is successful only when it effectively converts organizational
goals into the organization’s unit-oriented goals.

The characteristics of an ideal organizational goal must be:

1. Clear, concise, and without any confusion

2. Challenging yet motivating for the works and operational staff

3. Within the skills and competence of the operational unit

4. Consistent throughout the goal-setting sessions

While defining organizational objectives, it is mandatory that you also do resources analyses so that the
goals are realistic and achievable. Once goals are determined by supervisors or top management, then
these goals must be communicated through all channels to subordinates, operational staff, and all other
levels.

Note: Organizational objectives or goals should not be imposed or forced on subordinates or operational

staff. Rather they must equally participate when establishing objectives and they must agree upon as
well. This will make the subordinates committed to the goals.

In short, the objective setting must be according to the mnemonic S.M.A.R.T which means:
 1. Specific: The objective must clearly state the area of the organization that needs improvement s

2. Measurable: Organizational goals must be set in a way that later they can be measured by some
kind of performance indicator.

3. Agreed-Upon: It’s important that the objectives are communicated to all levels and all levels
must agree upon those objectives. It means the objectives must be accepted by two levels,
those who created the objectives and those who are going to work and achieve objectives.

4. Realistic: Objectives must be realistic meaning that objectives are set by keeping the available
resources in mind and what can possibly be achieved.

5. Time-Bound: There must be an end period when the performance can be measured or when
the objectives must be fulfilled.

In short, while defining the objectives of the organization, a statement of purpose (SOP) must be clear
by knowing the answer to the following questions:

 Why does the organization exist?

 What are the goals?

 What product or services does this organization offer?

 Which domain this organization is going to deal with?

2. Determining Employees’ Objectives – Developing Action Plans

In this picture: Woman employee working on a laptop
After determining the organizational goals, the next step Is to set the individual’s goals or more clearly
employees’ goals. It is the responsibility of the manager to ask employees about what goals they can
accomplish within a specific period and what resources will they use to achieve those goals.

If needed, managers and employees can prioritize the goals from the most important to the least
important ones to make the goal chasing process easy and in favor of the organization.

Basically, this step is an action plan for employees or this phase sets up performance objectives. This
action plan clearly states what is to be done, how is it to be done, and what is the path to achieving
these goals?

Managers and subordinates or employees join to develop this action plan. This helps managers to set a
progress monitoring indicator to see actual performance. Not only this, but the action plan also helps to
identify the most efficient methods to achieve the feasible goals.

This step ends the planning phase of MBO because, after this reviews, monitoring, feedback activities
start.

In simple words, this step of MBO is a two-way process rather than one-way. It means superiors don’t
impose or forces these objectives on employees. Rather, superiors suggest these goals to employees
and employees accept them or ask for changes if available resources are not feasible for certain
objectives.

In simple words, this step of MBO is a two-way process rather than one-way. It means superiors don’t
impose or forces these objectives on employees. Rather, superiors suggest these goals to employees
and employees accept them or ask for changes if available resources are not feasible for certain
objectives.

In simple words, this step of MBO is a two-way process rather than one-way. It means superiors don’t
impose or forces these objectives on employees. Rather, superiors suggest these goals to employees
and employees accept them or ask for changes if available resources are not feasible for certain
objectives.

3. Constant Monitoring Progress and Performance

The process of MBO is not just set for providing additional effectiveness to managers across the
organization, but it is also equally important for constantly monitoring the progress and performance of
the employees.

Some of the important things that can help managers to monitor performance and progress are:

 Checking less-effective or ineffective programs by performing a comparison of performance with

already prepared objectives

 Using ZBB (Zero Based Budgeting)

  For measuring plans and individuals, implementing MBO concepts

 Defining short term and long term plans, objectives, and goals

 Installing efficient and effective controls

 Eventually, composing the completely sound structure of the organization with all things at
appropriate places such as responsibilities, decision making, and so on

In this phase, subordinates and superiors regularly conduct meetings to see the progress and
performance.

In case, if the employees are not performing well according to the original action plans then immediate
remedial actions are taken to fix the problems. Not only current problems are fixed, but future
weaknesses are also identified.

Another benefit of monitoring is that it makes employees conscious that superiors are regularly
monitoring their performance for the action plan they agreed upon earlier. As a result, they work
towards achieving the defined objectives more efficiently.

4. Performance Evaluation

As per the basic concept of MBO, the performance evaluation comes under the responsibility of
concerned managers and is made by their participation. Keep in the mind, performance evaluation is
one of the most important factors of the organization that can help to operate certain objectives
smoothly.

5. Providing Feedback – Performance Review

The psychologically influential factor of MBO is providing continuous feedback to employees regarding
their performance and individual goals so that they can monitor, correct, and extra improve their skills
and mistakes.

Mostly, the feedback is provided in periodic meetings held by supervisors and their subordinates to
review the performance and progress towards the achievement of goals. At one point, feedback helps
individuals know their weaknesses.

While on the other hand, it also motivates already potential individuals to enhance and develop their
performance additionally.

The main purpose of feedback is to identify the deviations and shortcomings to improve the quality
rather than focusing on criticism.

Feedback is provided in a face-to-face meeting held by superiors for the subordinates. These feedback
meetings are held at different intervals like 3 months, 6 months, or 9 months depending on the
organization’s structure.
Feedback not only reviews the performance of subordinates but also checks if the objectives are still
valid or if any modifications are required to make the objectives valid.

6. The Performance Appraisal – Recycling

In this picture: Woman holding a page of feedback

Performance appraisals are the final step of the process of Management by Objectives. By definition, a
day-by-day review of the employee’s performance across the organization can be called a performance
appraisal.

Performance appraisal is associated with the term performance evaluation, but in some cases, both
differ from each other.

At this step, rewards of MBO appraisal are decided for individuals based on their performance. This
helps motivate employees to work with more passion.

Not only appraisal but at the step new objectives are set or current objectives are modified (if needed)
along with their approaches to improve the overall performance. This phase helps employees identify
their areas of excellence and weaknesses.

It means MBO helps employees and superiors in career advancement, skill improvement, and self-
improvement.

After this phase, the whole cycle repeats itself with clear feedback for the next steps. This reward or
review gives a clear message to all employees that the hard work and goal achievement has been valued
so that they can also put their heart into the work. This works not only for employees but also for all
levels of the organization.

When reviewing or appraising, superiors must keep the following points in mind:

1. As MBO objectives are measurable, attainable, and time-bound, the performance of an

employee must be evaluated based on these criteria and it should be straightforward.

2. As MBO goals are different for each employee based on his/her competencies, therefore, the
evaluators evaluate their performance according to their competency and goals. One scale of
performance evaluation can’t work for all employees.

3. Feedback or appraisal must be clear, accurate, and fair. Otherwise, there is no benefit of MBO
after the whole MBO cycle.

4. Feedback or appraisal must be based on performance and results not based on failures or
excuses. However, the manager must note the failures and excuses so they can fix them in the
future with appropriate corrective actions.

There are various performance appraisal instruments that superiors can use to keep their employees
motivated. Some tools performance appraisal tools are:

1. Ranking Method

2. Confidential Reports
 3. Checklists

4. BARS

5. Paired Comparison

6. Forced Distribution

7. Performance Test

Note: We will cover the details of each tool in another article.

ntroduction

Decision making is a daily activity for any human being. There is no exception about that. When it comes
to business organizations, decision making is a habit and a process as well.

Effective and successful decisions make profit to the company and unsuccessful ones make losses.
Therefore, corporate decision making process is the most critical process in any organization.

In the decision making process, we choose one course of action from a few possible alternatives. In the
process of decision making, we may use many tools, techniques and perceptions.

In addition, we may make our own private decisions or may prefer a collective decision.

Usually, decision making is hard. Majority of corporate decisions involve some level of dissatisfaction or
conflict with another party.

Let's have a look at the decision making process in detail.

Steps of Decision Making Process

Following are the important steps of the decision making process. Each step may be supported by
different tools and techniques.
Step 1: Identification of the purpose of the decision

In this step, the problem is thoroughly analysed. There are a couple of questions one should ask when it
comes to identifying the purpose of the decision.

 What exactly is the problem?

 Why the problem should be solved?

 Who are the affected parties of the problem?

 Does the problem have a deadline or a specific time-line?

Step 2: Information gathering

A problem of an organization will have many stakeholders. In addition, there can be dozens of factors
involved and affected by the problem.

In the process of solving the problem, you will have to gather as much as information related to the
factors and stakeholders involved in the problem. For the process of information gathering, tools such as
'Check Sheets' can be effectively used.

Step 3: Principles for judging the alternatives

In this step, the baseline criteria for judging the alternatives should be set up. When it comes to defining
the criteria, organizational goals as well as the corporate culture should be taken into consideration.

As an example, profit is one of the main concerns in every decision making process. Companies usually
do not make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles
should be identified related to the problem in hand.

Step 4: Brainstorm and analyse the different choices

For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step,
it is vital to understand the causes of the problem and prioritization of causes.

For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect
diagram helps you to identify all possible causes of the problem and Pareto chart helps you to prioritize
and identify the causes with highest effect.

Then, you can move on generating all possible solutions (alternatives) for the problem in hand.

Step 5: Evaluation of alternatives

Use your judgement principles and decision-making criteria to evaluate each alternative. In this step,
experience and effectiveness of the judgement principles come into play. You need to compare each
alternative for their positives and negatives.

Step 6: Select the best alternative

Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best
alternative is an informed decision since you have already followed a methodology to derive and select
the best alternative.

Step 7: Execute the decision

Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the
help of subordinates.

Step 8: Evaluate the results

Evaluate the outcome of your decision. See whether there is anything you should learn and then correct
in future decision making. This is one of the best practices that will improve your decision-making skills.

SPAN OF CONTROL

Span of Control means the number of subordinates that can be managed efficiently and effectively by a
superior in an organization. It suggests how the relations are designed between a superior and a
subordinate in an organization.

Span of Control can be defined as the total number of direct subordinates that a manager can control or
manage. The number of subordinates managed by a manager varies depending on the complexity of the
work.

For example, a manager can manage 4-6 subordinates when the nature of work is complex, whereas,
the number can go up to 15-20 subordinates for repetitive or fixed work.

Meaning and Explanation

The term “Span of Control” is popularly used in business management and human resource
management. Because this term is related to the management and controlling of employees, the
meaning of the word is the total number of subordinates that a manager or supervisor can manage.

In the past, one manager was capable of managing 1-4 subordinates. Because of that, there were many
levels of management in one organization. In 1980, with the introduction of information technology in
business, many organizations flattened their management by reducing the number of managers in an
organization. After that, the span of one manager increased from 1-4 to 1-10 subordinates.

This was possible because of inexpensive information technology. Technology helped in easing out
several middle managers’ tasks such as collection and manipulation of operation information. Because
of this, a manager became capable of managing more subordinates at one time.

Several factors affect the span of control of a manager, such as the nature of work, capabilities of the
manager, capabilities of employees to be managed, and the responsibilities of a manager. It can be of
two types, such as a narrow and a wide span of control. It is considered to be narrow when a manager
manages 2 to 4 subordinpan of control is of two types:

1. Narrow span of control: Narrow Span of control means a single manager or supervisor 

oversees few subordinates. This gives rise to a tall organizational structure

Advantages of a narrow span of control.

1. The manager can supervisor each of his subordinates intimately.

2. The nature of work is usually complicated.

3. Effective communication between the subordinates and their manager.

4. More layers in the hierarchy of management.

Despite many advantages, the narrow span of control is not free from disadvantages.

Disadvantages of a narrow span of control

1. Too much control over employees might hamper their original talent and creativity.

2. Extended hierarchy of control results in a long time in decision-making.

3. Narrow span of controlling prevents cross-functional problem-solving.

On the other hand, a span of control is wide when a manager manages or controls up to 20

subordinates.

Wide span of control: Wide span of control means a single manager or supervisor oversees a large
number of subordinates. This gives rise to a flat organizational structure.

Advantages of a wide span of control.

1. In a wide span of control, subordinates are more independent.

2. Fewer layers in the hierarchy of management.

3. The nature of work is repetitive.

4. Less direct communication between subordinates and managers.

Disadvantages of a wide span of control.

1. Ineffective management.

2. Increased workload on managers.

3. The roles of team members are not clearly defined.

4. Less communication between managers and subordinates reduces the control of the manager.

Factors Affecting Span of control:

Capacity of Superior:

Different ability and capacity of leadership, communication affect management of subordinates.

Capacity of Subordinates:

Efficient and trained subordinates affects the degree of span of management.

Nature of Work:

Different types of work require different patterns of management.

Degree of Centralization or Decentralization:

Degree of centralization or decentralization affects the span of management by affecting the degree of
involvement of the superior in decision making.

Degree of Planning:
 

Plans which can provide rules, procedures in doing the work higher would be the degree of span of
management.

Communication Techniques:

Pattern of communication, its means, and media affect the time requirement in managing subordinates
and consequently span of management.

Use of Staff Assistance:

Use of Staff assistance in reducing the work load of managers enables them to manage more number of
subordinates.

Supervision of others:

If subordinate receives supervision form several other personnel besides his direct supervisor. In such a
case, the work load of direct superior is reduced and he can supervise more number of persons.

Factors
The span of control means the total number of employees that a manager or
superior can manage. Several factors are taken into consideration before
allocating subordinates to a supervisor.

1. Type of work to be managed

The most crucial factor that affects the span of control and
management skills of a manager is the type of work. If all the subordinates are
doing the same job at the same time, then it is easy for a manager or superior
to manage all employees at the same time.

For example, it is easy for a supervisor to manage 50 call executives at the

same time because they are doing similar work at the same time. On the other
hand, a professor can take two or a maximum of four students pursuing a
doctorate.

The reason being is that all students work on different research topics, and
the professor can’t manage all of his students at the same time.

2. Geographical distribution

If the branches of business are located at far geographic locations, then it

becomes difficult for a manager to manage all the executives working at all
the branches. Therefore, areas will be divided into clusters, and different
managers are hired to manage each cluster.

In this way, each manager can effectively manage all employees working in
small areas. For example, if a company has its branches all over the world,
then all branches can be divided country wise and country managers can be
hired to manage all people working in that area.

3. Administrative tasks performed by a manager

The span of control of a manager reduces if he is required to complete several

administrative tasks daily. For example, an HR manager is required to
conduct Face-to-face meetings with employees, prepare
appraisal development plans, prepare job descriptions, conduct interviews of
employees to be hired, preparing employment contracts, design policies,
explaining changes in policies, discussing remuneration benefits.

All of these tasks require efforts at a manager’s end. Therefore, an HR

manager can manage employees working in one office. Because of this
reason, different HR managers are required in various branches of a
company.
4. The capability of the Manager

An experienced manager with a good understanding of the work and having

good relationships with employees can manage a higher number of
employees. Whereas, an inexperienced manager with limited skills can handle
a few employees.

5. Capabilities of employees

The span of control of a manager not only depends on the capabilities of a

manager but also depends on the capabilities of employees to be managed. A
manager, no matter how much experienced he is, can handle only a few
inexperienced or new employees at one time.

Since employees are required to be trained to do their work efficiently, the

manager is expected to spend a lot of time with each employee. As a result, it
becomes difficult for a manager to manage many subordinates at one time.

On the other hand, a manager can manage fully-trained and experienced

employees at the same time because he is not required to teach every small
task to them.

6. Responsibility for other tasks

The span of control of a manager will reduce if he has duties of different jobs
on his shoulders. That means he will be able to dedicate a limited time to
manage his subordinates.

For example, a professor is not only required to handle and help his doctorate
students, but it is also necessary for him to dedicate time to his research work
and to take theory classes of other students.

7. Manager’s value addition

A manager who is also providing training and skill development classes will
need a small span of control as compared to the manager who is exclusively
managing his subordinates.
8. Type of business

The span of control of a manager also depends on the kind of business.

Different types of business processes can reduce the span of control of a
manager.

Examples

Let us understand the concept of span of control with the help of an example.
A retail company hired Will as an inventory manager. He found that the
employees are not designated in the organization, due to which it became
difficult for him to do his job correctly.

Employees who were responsible for performing inventory control work were
also responsible for doing the work of other departments. Because of this, it
became difficult for him to do his work correctly and on time. Therefore, he
took this matter to the upper management and suggested them to define the
job role of each employee clearly and asked for a dedicated team for himself.
As a result of which he got a team of 3 employees who exclusively took orders
for him and do the work related to the inventory control. By having explicit
knowledge, he could do work in a better way and also on time. In this way,
the performance of the whole inventory control department improved.

The term ‘span of control’ is also known as ‘span of supervision’ or ‘span of authority’. Simply stated it
refers to the number of individuals a manager can effectively supervise. Thus, it is expected that the
span of control, that is, the number of subordinates directly reporting to a superior should be limited so
as to make supervision and control effective. This is because executives have limited time and ability

Factors affecting Span of Control

1. Nature of the work: If the work is simple and repetitive, the span of control can be wider. However, if
the work requires close supervision the span of control must be narrow.

2. Ability of the manager: Some managers are more capable of supervising large numbers of people
than others. Thus for a manager who possesses qualities of leadership, decision-making ability, and
communication skill in greater degree the span of control may be wider.

3. Efficiency of the organisation: Organisations with efficient working systems and competent personnel
can have larger span of control.

4. Staff assistants: When staff assistants are employed, contact between Organising supervisors and
subordinates can be reduced and the span broadened.

5. Time available for supervision: The span of control should be narrowed at higher levels because top
managers have less time available for supervision. They have to devote the major part of their work time
in planning, organising, directing and controlling.

6. Ability of the subordinates: Fresh entrants to jobs take more of a supervisor’s time than trained
persons who have acquired experience in the job. Subordinates who have good judgement, initiative,
and a sense of obligation seek less guidance from the supervisor.

7. Degree of decentralisation: An executive who personally takes many decisions is able to supervise
fewer people than an executive who merely provides encouragement and occasional direction.
FACTORS AFFECTING SPAN OF CONTROL (commercestudyguide.com)

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