ACCA Applied Knowledge · Business and Technology · The formal and informal business organisation
A company has restructured so that each manager now supervises 4 staff rather than 12. All else being equal, which outcome is most likely?
A narrower span of control produces a taller structure with more management levels. With fewer subordinates per manager, more managers are needed to oversee the same workforce, so the scalar chain lengthens and communication passes through more layers.
- AA flatter structure with fewer management levels
- BA taller structure with more management levelsCorrect
- CA wider span of control with less close supervision
Explanation
Narrowing the span means more managers are needed to cover the same workforce, so more levels are created and the scalar chain lengthens. This gives a taller structure. A flatter structure and wider span result from the opposite change.
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