Assessing Your Organizational

Span of Control

State Classification Office, September 2003

Changes in the Workforce

Workers are more independent and collaborative

There is a greater focus on individual worker performance and less on supervision

Streamlining in organizations has reduced the number of supervisors and managers

Role of supervisors has changed from “control” to “support”

Changes in Organizations

High specialization

Rigid departments

Clean chains of command

Narrow spans of control

Centralization

Cross-functional teams

Cross-hierarchy teams

Free flow of information

Wide spans of control

Decentralization

Changes in the State

In 1995, the Legislature enacted provisions to limit growth in employment levels

Although agencies trimmed budgets, many did not streamline their structures, improve processes or reduce excessive management

Texas Government Code 651.004 was enacted and required agencies to establish goals for achieving a higher management-to-staff ratio

78th Legislative Session amended the code to include a mandated time line for agencies to achieve a 1:11 management-to-staff ratio

Legislative Timeline

HB 3442 amends Gov. Code 651.004 and mandates that state agencies in the executive branch of government with 100FTEs comply with the 1:11 ratio by FY 2008.

Implementation Schedule Minimum Ratio

March 31, 2004 1:8

August 31, 2005 1:9

August 31, 2006 1:10

August 31, 2007 1:11

 

Span of ControlLegislative changes in Texas are intended to increase

span of control in agenciesSpan of control refers to the number of subordinates

who report directly to a single manager or supervisorHigh span of control has a direct link to:

– Greater employee empowerment

– Faster decision making processes

– Improved communications

– Greater organizational flexibility

– Reduced personnel and overhead costs

– Increased delegation resulting in improved job satisfaction

Factors that Influence Span of Control

Job complexity– More complex jobs = more managerial input

Job similarity– Similar jobs = more employees per manager

Geographic proximity of employees– Dispersed locations = more supervision

Amount of coordination to complete tasks– High coordination = more supervision

Factors that Influence Span of Control

Employee abilities– Knowledgeable, trained staff = less supervision

Employee empowerment– Employees who are trusted and empowered to make

decisions need less supervision

Ability of management– More capable management = more employees per

manager

Tall Hierarchy: Low Span of Control

Organizational Factors Supporting Narrow Span

of ControlHigh levels of diversity and complexity of work

performed by an organizationThe extent to which coordination and

interdependence is important between employees and groups

Large amounts of change in the work environmentGreater geographic dispersionLarge administrative burdensHigh employee expectations and needs regarding

development and career counseling.

Flat Hierarchy: Wide Span of Control

Organizational Factors Supporting Large Span of

Control

Experienced people who are well selected and developed

Employees who can function with little supervision and monitor their own performance

Job design and tools that give employees direct performance feedback

Success of self managed teams

How to Ensure your Organization is in

Compliance with New Legislation

Assess your organizational structureEnsure that management is actively

involvedReview agency ratiosAccurately analyze managerial jobs and

positionsDevelop plans to change ratios if neededReport ratios timely to the State Auditor’s

Office

Before You BeginReview agency workforce and strategic plans. Clarify the purpose, objectives and priorities for

your headquarters or main offices.Establish “ground rules” for layers within your

agency.Link these rules to your agency’s objectives.Gather organizational charts for all programs

and divisions.Focusing on cutting to a plan, not a specific

number…but try to stay lean

Where to Start

1. Review organizational charts.

2. Consider using analytical tools.

3. Identify employees who supervise a limited number of employees (1-3).

4. Identify groups of professional employees who could work in self-managed teams.

5. Identify “technical” supervisors who could be reassigned to team leader positions.

1. Review Organizational Charts

Count the total number of layers from the lowest individual contributor to the Executive Director.– Individual contributors (do not supervise but may act as team

leader)

– Supervisors (Include first line, second line, etc.)

– Managers (Include first level, second level, etc.)

– Executive or Agency Head

Target range should be 4-6 layers, smaller agencies (less than 500 employees) should have fewer layers.

2. Use Analytical Tools

Activity analysis – Can be performed to understand how much time middle

managers actually spend on management and supervisory activities.

Decision/responsibility matrices – Can be developed to understand who is responsible for making

decisions and what positions have overlapping or redundant responsibilities.

Conceptual maps – Indicate what functions and services are helpful in order to

identify duplicate services.

3. Identify Employees Who Supervise a Limited Number of Employees

Consider these questions?– Can those employees being supervised be moved under

another supervisor?– Can the current supervisor be a team leader? – If that position were to not supervise would it be needed?– Have you performed a job analysis (activity analysis) on the

supervisory positions?– What value does this position create? Management and

supervisory positions that do not add value commensurate with their costs should be eliminated or restructured.

4. Identify Employees who can Work in Self-

Managed TeamsWork teams have replaced traditional

management– Results may include dramatically increasing productivity – The quality of work life is often enhanced for employees.

Highly developed teams can control functions once reserved for management– Designing work processes– Establishing production schedules– Setting goals and performance measures– Maintaining quality control.

5. Identify “Technical” Supervisors

Consider these questions:– Do these employees work in high level technical or very

specialized jobs?

– Does the employee need to write performance evaluations or

have the authority to hire and fire?

– Can the employee oversee work assignments and work more as a

team leader?

– Can supervisory duties be taken from the job without

substantially reducing the employee’s workload?

Before You Restructure

Remember:– Management support is critical– Successful restructuring complements organizational

strategies– Organizational culture plays a big role– There are no “quick” fixes

Restructuring processes should include:– Project planning– Data collection– Structural analysis– Staffing needs analysis– Span of control analysis– Development of recommendations

Additional TipsWith regard to spans of control the complexity of the

functions being performed is the primary determinant of the number of positions that can be effectively supervised

Work process reengineering can create radical change and result in improved performance and reduced cost

When evaluating organizational structure it is extremely important to consider all the factors that affect your organization and to consider what “non-organizational” changes might be implemented both to improve operations and to reduce management and supervisory needs.