Business Studies Multiple Choice Question – 18 August 2021

Big Oil is a global oil and gas company with 100,000 employees. Its organisational structure has a narrow span of control. 

What would be one benefit for Big Oil of having a narrow span of control?

Select ONE answer:

1. Allows for closer supervision of employees
2. Managers will have less time to supervise each employee
3. Gives employees the chance for more independence
4. Fewer layers in the hierarchy may be required 

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Definition of span of control e.g. the number of employees under a manager’s direct control.  Big Oil’s managers will only have a relatively small number of employees beneath them.  Managers therefore have more time to build an effective and productive relationship with employees.
2. Not correct – managers will have MORE time to supervise each employee as there are fewer employees for them to manage.
3. Not correct – freedom and responsibility is restricted due to closer supervision.
4. Not correct – narrow spans of control tend to occur in tall hierarchies with many layers.

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