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Business Administration QUESTION #9606
Question 1
An organization restructures from a tall hierarchy (7 levels) to a flat structure (3 levels) and simultaneously widens every manager's span of control from 5 to 15 subordinates. Six months later, managers report overload and junior employees report feeling unsupervised. Which organizational design principle was violated, and what contingency factors should have been assessed before restructuring?
  • The principle of unity of command — multiple reporting relationships have confused authority lines after flattening
  • The span of control principle — effective span is not uniform but depends on task complexity, subordinate competence, degree of task interdependence, and clarity of plans; widening span without first ensuring these contingency conditions are met creates supervisory overload and performance gaps✔️
  • The scalar principle — the reduction in hierarchical levels has broken the chain of authority from top to bottom
  • The departmentalization principle — flattening without changing departmental groupings produces functional conflicts
Correct Answer Explanation
Span of control theory (Graicunas, Urwick) holds that effective span depends on: task complexity (complex tasks require more supervisory interaction), subordinate training (trained subordinates need less supervision), task interdependence (interdependent tasks require more coordination), and plan clarity (clear procedures reduce supervisory burden). Widening span to 15 without addressing these factors creates the exact failure described. Restructuring must be preceded by contingency assessment, not driven solely by cost-reduction logic.