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The number of management layers in a firm is determined by the
1. Scalar principle
2. Span of control
3. Degree of unity on the command
4. Number of managers in the firm

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Correct Answer - Option 2 : Span of control

Explanation:

Span of control:

  • Span of control or span of management means a number of subordinates a manager can supervise effectively.
  • The span of management is also called the span of supervision.
  • Span of management is a classical concept in the literature of organizational structure.
  • An understanding of the concept helps in finding out the reason for the creation of a number of managerial levels, division of labour and formation of a compact workgroup.
  • Depending on the size of a company, the organizational structure might contain as few as two layers or more than half a dozen.
  • Small companies often operate with a structure that consists of a handful of trusted employees reporting to the boss. Large companies, especially those with multiple locations and divisions, can have many layers of management and staff-level workers.
  • Span control is used to determine the no of the layer which is necessary and suitable for the organisation.

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