What does "Span of Control" signify in an organisation?

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Enhance your preparation for the IGCSE Business Studies Test with flashcards and multiple choice questions. Every query is paired with tailored hints and explanations to boost your confidence. Prepare thoroughly for your exam!

"Span of Control" signifies the number of subordinates directly under one manager. This concept is crucial in understanding organizational structure and management effectiveness. A manager's span of control indicates how many employees they supervise, which can affect decision-making, communication, and overall efficiency within the organization.

A wider span of control may facilitate a flatter organizational structure, which can enhance flexibility and speed in communication, but it may also lead to challenges in managing employees effectively. Conversely, a narrower span of control allows for closer supervision and potentially better management support for employees, but it can also create a more hierarchical structure that may inhibit quick decision-making.

Understanding this concept is essential for analyzing management structures, as it helps businesses determine optimal team sizes and influences the style and approach of leadership.

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