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 Cross-functional teams Cross-hierarchy teams

Clean chains of command

Narrow spans of control Centralization

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

August 31, 2005 August 31, 2006 August 31, 2007

1:8
1:9 1:10 1:11

Span of Control
Legislative changes in Texas are intended to increase span of control in agencies Span of control refers to the number of subordinates who report directly to a single manager or supervisor High 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 Control

High levels of diversity and complexity of work performed by an organization The extent to which coordination and interdependence is important between employees and groups Large amounts of change in the work environment Greater geographic dispersion Large administrative burdens High 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 structure Ensure that management is actively involved Review agency ratios Accurately analyze managerial jobs and positions Develop plans to change ratios if needed Report ratios timely to the State Auditors Office

Before You Begin

Review 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 agencys objectives. Gather organizational charts for all programs and divisions. Focusing on cutting to a plan, not a specific numberbut 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 Teams

Work 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 employees 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 Tips
With 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 nonorganizational changes might be implemented both to improve operations and to reduce management and supervisory needs.