The span of control refers to the number of direct reports a manager has. How does a larger span typically affect organizational design?

• A. It increases the number of management layers and increases costs.
• B. It has no effect on supervision quality.
• C. It increases the need for specialized departments.
• D. It reduces the number of managerial layers and may hinder supervision.

Answer: (D)

When a manager has more direct reports, the organization tends to flatten its structure, reducing the number of managerial layers. That wider span of control can improve efficiency and cut costs by eliminating levels of supervision. However, with more people to oversee, the manager has less time for each individual, which can make supervision and timely coaching more challenging. So, the typical design consequence is a flatter hierarchy coupled with a potential decrease in supervision quality.

The other options don’t fit because increasing the number of direct reports doesn’t create more management layers or boost supervision quality; it’s more about heightening the manager’s workload and often reducing the number of layers. It also isn’t a direct driver of needing more specialized departments, which is more about functional structure than span of control.