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"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.