Case Study on Span of Control

Baron Zink Ltd a large-scale private sector industrial establishment has been running with profit
for the last one decade. The company had a good marketing network and sales force all over the
country. The organisation has divided the entire marketing region into six divisions like East,
West, North, South, Central and North East. Kiran Kumar (38) is in charge of marketing,
Southern region. As a marketing manager he is very competent, hardworking and committed to
his work and the organisation. The culture of the organisation widely held employees and
employers competency, skill and knowledge of employees to get better reward in the
organisation. The company management has better impression upon the performance of Kiran.
Kiran has to maintain a manageable of sales force of Southern region. Though the Southern
territory was little wide for networking, with the help of his sales force he maintained the entire
region competing with other companies.

Kiran maintained a mentor-portage relationship with subordinates and engaged himself to solve
many of the personal and professional problems with his sales force and made available to his
sales and marketing team at any hour for quarries and concerns for strategic decision making. He
usually conducts regional level meeting with his marketing and sales force to get better feedback
about the product, quality, design, price, demand competition and fluctuating market
environment etc. He tried to conduct market research to get information about the changes in the
market. As the number of sales force members was manageable to him he made close contact
with the group. By developing informal relationship and communication channels he believed
that better superior-subordinates relationship could produce better results in the performance
level. Kiran was excellent in developing better marketing strategies compared to other territory
mangers since he was getting current information from his sales force about the market
fluctuations and changes. the culture of the organisation promotes performance and competency.
Kiran maintained a retention strategy of recognition and appreciation through monitory and non-
monitory reward system. Under him almost 7 middle level managers and 21 junior level
managers were working. He used to conduct weekly performance meeting with his subordinate
level managers and strictly followed follow-up strategies. Based on the meetings he was
directing their subordinate's the marketing methods that to be changed and new strategies to be
adopted. During his close interaction with the sales force members he used to extend positive
strokes to improve their performance. Since the sales force and the span of management were
manageable to Kiran in the southern region he could manage his region with better sales and
profit. The top management didn't have any objection in his way of dealing with his sales force.

Mohan Kumar (42) Marketing Manger of central division has resigned from his post since he got
better opportunity in one of the companies in North. The Central division was running with profit
but not in par with other regions. The situation was critical to the company. To manage the
central division, since the management didn't have immediate alternative they asked Mr. Kiran to
take additional responsibilities of the central region. The central division covers many areas more
than Northern region. The task was challenging to him. Kiran was unaware of the marketing
network, market conditions, market fluctuations, competition of local market products and the
sales force. Since the company asked only for a stopgap arrangement, for one-month time for the
selection of new manager, he said 'yes' to the management. He started to managing two
divisions. Thus two territories, two sales force and two set of subordinate managers came under
his guidance and management. He has found difficulty in conducting regular follow-up meetings
with the middle level managers, junior level managers and the sales force of two territories.
Many times he was delayed in getting aware of marketing problems of new territory and existing
territory, since because of that he failed to take strategic decisions in both territories. More over,
he couldn't maintain the mentor portage relationship that he practiced with his sales force and the
managers, in the advent of tow territory sales force due to lack of time.

Mr. Mohan Kumar followed centralized decision-making process in his territory. The span of
management was very limited. He had only ten mangers to manage huge territory. The number
of sales staff was high compared to South division. When the regular follow-ups and the meeting
started he has faced difficulty to understand many of the marketing problem faced by the sales
force in the central division. More over couldn't develop good interaction and interrelation with
his central division sales force because of hectic work schedule in a limited time span. The
members of central sales force had the fear and anxiety about the new Marketing Manager
(Kiran) who took in charge of their territory. There were many organisational situations where
Kiran could not be able to control his functional interventions and organisational behaviour. He
observed the superior level performance and the target accomplishments of his sales force,
compared to the central division. He realized one thing that when he took up central division, he
has lost his control over his own sales forces of Southern region. He couldn't find enough to
maintain the relationship that he developed with his own sales force and the managerial
members. The situation reach up to such a state that neither he could control his own regional
sales force nor the new one central sales force.

Periodical review of six regions happened on the month of July. The top management recognizes
the fact that the performance of the two territories viz., Central and South fall drastically within a
period of three months. The wise president of marketing Division called Kiran and asked
explanation of the poor performance. Kiran reported that he took up the additional responsibility
of new division only for one month. He was expected to move back his division after One
month. He further informed the management that the arrangement made in the marketing
division was only temporary. He took in charge of the Central division as it gives sufficient time
for management to recruit new manager in the vacant position. The company delayed the
appointment. The two - territory was unmanageable for Kiran to handle. More over the span of
management was unaffordable to single manager. The report of Kiran was not satisfactory to
management. Within a period of one week the company appointed a marketing manager in the
Central division. The top management took back the responsibilities of Central division from
Kiran and handover the same to the new Marketing manager. Kiran found himself highly
satisfied with the management decision that at least he can extend better functional performance
on his own division.

Questions

1. Will you agree with the statement that 'higher the span of management lower the flow of
information and communication with subordinates'?
2. How the span of management affects managerial control at operational level?