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

A Kolkata company has a manager supervising 8 subordinates and the work is routine and similar. The firm's management then restructures and decides to add more levels so each manager supervises only 4. The most direct effect is that the organisation structure becomes:

The structure becomes taller with a narrower span of control. Cutting subordinates per manager from eight to four narrows the span, and for the same workforce this requires more levels of management. A flat structure is associated with wide spans, so it does not fit.

  1. ATaller, with a narrower span of controlCorrect
  2. BFlatter, with a wider span of control
  3. CFlatter, with a narrower span of control
  4. DTaller, with a wider span of control

Explanation

Reducing the number of subordinates per manager narrows the span. For the same workforce, a narrower span needs more managerial levels, so the structure grows taller. A flatter structure would need a wider span, which is the opposite of the change described.

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