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As a general rule, how does span of control relate to organizational efficiency?
AThe larger the span, the more efficient the firm
BThe smaller the span, the more efficient the firm
CSpan of control has no bearing on efficiency
DEfficiency peaks only at a span of exactly ten
Answer & Solution
Correct answer: A. The larger the span, the more efficient the firm
1. Each firm decides how many managers are needed at each level to supervise the work performed.
2. In general, the larger the span of control, the more efficient the organization.
3. A wide span means fewer levels of management, which increases efficiency and reduces costs.
4. No fixed optimal number such as ten is given, since the right span depends on the work being supervised.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.4 Span of Control_
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