Which term is used in organizational context to refer to the levels of control and degree of centralization?

The term "Span of Control" refers to the number of subordinates that a supervisor or manager can effectively oversee. In an organizational context, it is crucial for determining the levels of control and the degree of centralization within a management structure. A broader span of control indicates a flatter organizational structure, often leading to more decentralized decision-making, while a narrower span of control suggests a more hierarchical structure with centralized authority.

The effectiveness of supervision and communication can be influenced by the span of control, as it determines how many employees report directly to a single manager. If a manager has too many direct reports, it may hinder their ability to manage effectively, leading to confusion and miscommunication, especially in more complex tasks or environments.

Understanding the balance of span of control helps organizations optimize their structure, improve efficiency, and ensure proper oversight at various levels of management. This concept is foundational in organizational theory and plays a critical role in effective management practices.