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CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading

A firm has 400 operating workers. Under Structure A, each supervisor has a span of control of 20 workers, and the firm has two further levels above the supervisors, each with a span of 5 (supervisors report to managers, and managers to one director). Under Structure B, each supervisor handles 10 workers. If every level above the supervisors continues with a span of 5, how many more supervisors are needed in Structure B than in Structure A?

Structure B needs 20 more supervisors. With a span of 20, 400 workers need 20 supervisors; with a span of 10 they need 40. The difference is 20. Narrower span means more supervisors and more levels, while the layers above do not affect this supervisor count.

  1. A10
  2. B15
  3. C20Correct
  4. D40

Explanation

Structure A needs 400/20 = 20 supervisors. Structure B needs 400/10 = 40 supervisors. The difference is 40 - 20 = 20. The managerial levels above do not change the supervisor count; 15 or 10 would wrongly come from counting managers or halving incorrectly.

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