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ACCA Strategic Professional · Strategic Business Leader · Enabling success: organising

Teluk Logistics has a finance director with 14 direct reports, including routine clerks and senior analysts. Errors in reporting have risen and managers complain of little supervision or guidance. Which organisational change best addresses the problem?

The finance director should narrow the span of control by adding an intermediate management layer. A span of 14 on varied, complex work gives too little supervision and support, causing errors. Widening the span or removing reviews would worsen it, and centralising with the chief executive does not fix supervision.

  1. AWiden the span of control further to empower staff
  2. BCentralise all decisions with the chief executive
  3. CNarrow the span of control by adding an intermediate management layerCorrect
  4. DRemove all supervisory reviews to speed up work

Explanation

A span of 14 for complex work means inadequate supervision, so narrowing it by introducing intermediate managers improves oversight and support, at the cost of a taller structure. Widening the span would worsen the problem. Moving decisions to the CEO does not address supervision at the finance level.

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