When Span of Management Increases, the number of levels of Management in the Organisation:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Decreases
Option (1) Remains same — Incorrect. The span decides the number of levels, so a change in span changes the levels.
Option (2) Increases — Incorrect. The levels increase when the span becomes narrow, not when it becomes wide.
Option (3) Decreases — Correct. Span of management means the number of subordinates that one superior can manage well. The span decides the levels of management in the structure. Take a firm with a fixed number of employees. If each manager looks after more people (a wider span), fewer managers are needed above them. So fewer layers are needed, and the structure becomes flat. If each manager looks after only a few people (a narrow span), more managers and more layers are needed, and the structure becomes tall.
Option (4) Will multiply — Incorrect. The levels do not multiply. They go down as the span goes up.
NCERT (2026-27 Edition): “Organisation Structure … The organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources. It allows correlation and coordination among human, physical and financial resources and this enables a business enterprise to accomplish desired goals. The organisation structure of a firm is shown in an organisation chart.” “…Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure.” “A proper organisation structure is essential to ensure a smooth flow of communication and better control over the operations of a business enterprise.” |