Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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What is the definition of span of control in an organizational context?

The number of management levels
The total number of employees in an organization
The number of subordinates under one manager's control
The extent of decision-making authority

The correct answer is: The number of subordinates under one manager's control

In an organizational context, the concept of span of control specifically refers to the number of subordinates that a manager or supervisor directly oversees. This is crucial because it influences the effectiveness of management and the organization as a whole. A wider span of control can lead to increased delegation and autonomy among employees, while a narrow span can facilitate closer supervision and possibly more effective communication. By defining span of control in this way, it emphasizes the direct relationship between managers and their teams, which impacts various organizational dynamics, such as efficiency, employee morale, and communication flow. Understanding this span is essential for designing organizational structures that optimize performance and resource allocation.