Identify the concept which determines the levels of management in an organisation’s structure.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Span of management
Option (1) Span of organising — Incorrect. There is no such concept in management. The real term is span of management.
Option (2) Span of management — Correct. Span of management is the number of subordinates that one superior can manage well. It decides how many levels of management the structure will have. A narrow span means few subordinates under each manager, so more levels are needed. A wide span means fewer levels.
Option (3) Decentralisation — Incorrect. Decentralisation is about how far down the authority to take decisions is spread. It does not decide the number of levels.
Option (4) Delegation — Incorrect. Delegation is the passing of authority from a superior to his immediate subordinate. It happens within the levels, but it does not decide how many levels there are.
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.” |