Question

What is the first step management must take in establishing reporting lines when introducing an additional management layer in the organisational structure? Select one:

a. Establish if managers would be underutilised.
b. Establish how many people will report to one manager.
c. Establish the optimal span of management.
d. Establish who reports to whom.

Answer 1

The first step in establishing reporting lines with an additional management layer is to establish the optimal span of management. This step precedes determining the individual reporting relationships and ensures managers are effectively utilized within the organizational hierarchy. The correct option c.

Step-by-step explanation:

When introducing an additional management layer in an organizational structure, the first step management must take is to establish the optimal span of management. This involves determining the number of subordinates a manager can effectively supervise, which varies depending on the nature of the work, geographical dispersion, the skills of the manager and the employees, and other factors. Once the optimal span of management is established, it will become clearer how many people will report to one manager and who reports to whom, ensuring that managers are not underutilized.

Understanding an organization's hierarchy of authority helps employees know their direct supervisors and the chain of command. This knowledge is crucial for knowing where to go for answers and approvals within the organizational structure. As organizations pursue flatter structures, forming collegial relationships across levels becomes increasingly important.