Identifying the concept of management that refers to the number of subordinates that can be effectively managed by a superior.

Span of Management

The correct answer is option (3)- Span of Management.

The concept of management that refers to the number of subordinates that can be effectively managed by a superior is Span of Management.

The span of management, to a large extent gives shape to the organisational structure. 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.