Span of Control: Position to Org Unit Organizations

This topic explains how Span of Control is calculated in organizations where positions report to org units.

For a given org unit, first, get the number of managers that manage that org unit (whether they are within the org unit or not). Second, get the number of employees in the org unit not including the managers of that org unit. Third, get the direct child org units and retrieve only their managers if and only if those managers are not already accounted for in the direct employees count from the previous step. Finally, if the manager count from step one is greater than zero, then add up the direct employees and child org unit managers and divide that number by the manager count. If the manager count from step one is equal to zero, then just add up the direct employees and the child org unit managers to avoid a divide by zero issue

Consider the following variables:

m = the number of managers of a given org unit

e= the number of employees within said org unit who are not managers (those are included as part of m)

c = the number of managers of the given org unit's child org units (these cannot be the employees who are part of e)

Calculation Details:

Condition 1: If m>0, then the span of control = (e+c)÷m

Condition 2: If m=0, then span of control =e+c

Legal Perspective

In this example, the only manager of the NAK org unit is the CEO, Bobby Tables, which makes m from our equation above 1. There is only one direct employee who is not also part of m ( the CTO), so e is equal to 1. The NAK org unit only has one child org unit, SALES, and it is managed by one manager, VP. The VP is is a manager and therefore not part of e, so c equals 1. Now that all 3 variables are known, we calculate the span of control using Condition 1 from above (because m > 0.)

Calculation: (1+1)÷1=2.

 

 

 

To calculate the span of control for the SALES org unit, go through a similar process.

Here the only manager of the SALES org unit is the VP, John John, so m = 1. There is only one direct employee, the Manager Ali Ali, so e is equal to 1. Finally, there are no child org units, so c = 0.

Calculation: (1+0)÷1=1.

 

Functional / Manager Perspective

The same equations illustrated in the Legal perspective still apply to Functional and Manager perspectives, but are complicated somewhat by dotted reporting relationships. Remember, to see the correct span of control values under these perspectives, you must select the Perspective Analytics view. The Analytics - Employee view shows the Legal perspective only.

In this organization:

  • The NAK OU is managed by CEO
  • The SALES OU is managed by VP
  • The CONTRACTORS OU is managed by HEAD.

 

 

To calculate the Legal Perspective span of control:

  • For the NAK OU: m = 1 (CEO), e = 1 (CTO), c = 1 (VP); therefore the span of control is (1+1)÷1=2.
  • For the SALES OU: m = 1 (VP), e = 1 (MANAGER), c = 1 (HEAD); therefore the span of control is (1+1)÷1=2.
  • For the CONTRACTORS OU: m = 1, e = 1 (VP), c = 0; therefore, the span of control is (1+0)÷1=1.

 

 

To calculate the Functional Perspective span of control:

For the NAK OU: m = 1 (CEO), e = 1 (CTO), c = 2 (VP, HEAD) (Contractors has a dotted reporting relationship to NAK, so it is a child OU in the Functional Perspective); therefore, the span of control is (1+2)÷1=3.

For the SALES OU: m = 1 (VP), e = 1 (MANAGER), c = 0 (because the Contractors OU reports to NAK in the Functional Perspective); therefore, the span of control is (1+0)÷1=1.

For the CONTRACTORS OU: m = 1, e = 1 (VP), c = 0; therefore the span of control is (1+0)÷1=1.

 

To calculate the Manager Perspective span of control:

For the NAK OU: m = 1 (CEO), e = 1 (CTO), c = 2 (VP, HEAD) (Contractors has a dotted reporting relationship to NAK, so it is a child OU in the Manager Perspective); therefore, the span of control is (1+2)÷1=3

For the SALES OU: m = 1 (VP), e = 1 (MANAGER), c = 1 (HEAD) (Contractors has a solid reporting relationship to Sales, so it is also a child OU in the Manger Perspective); therefore the span of control is (1+1)÷1=2.

For the CONTRACTORS OU: m = 1, e = 1 (VP), c = 0; therefore the span of control is (1+0)÷1=1.

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