Analyse the possible implications for Nayudu software Ltd of a significant increase in its typical span of control.

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1. Analyse the possible implications for Nayudu software Ltd of’…. A significant increase in its typical span of control’. (10)

Nayudu software Ltd is a developing company which is increasing in size and profit margin. As it is growing into a strong competitor in the market, the company is changing many of its operating functions by changing the organisational structure, such as increasing the work force, pay rate which becomes 9 per cent and changing its typical span of control after employing 31 managers.

The company has decided to significantly increase its typical span of control by delegating the authority to junior employees and even new appointed individuals. This change could bring an increase in productivity as the employees are delegated the authority to meet the needs of their customers by making independent decisions without consulting with the managers, such as if a customer wants to discuss a specific need for the product they have purchased the employee would be given the freedom to fulfil their need by the best possible decision they could make at the time. However, delegating the authority to junior employees, especially new individuals could be a risky decision for the manager; this is because the employees would be less skilful than the managers. They could end up making decisions that could harm the overall productivity of the business, such as disappointing the customer with an attitude that they are not used to or simply by offering them products that turn out to be insufficient for their needs. Therefore, these implications can always affect the productivity of the business as it disappoints a regular customer.
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Moreover, matrix structure is another important decision made by the software Ltd company. The company wants to move its business to a matrix organisational structure. This decision is relevant for employees so they can work as a team and complete their assigned tasks to meet the corporate objectives, for instance, every department in an organisation would be given tasks as a team to complete on time. However, as departments are given span of control to manage their work as a team inside their department, this could lead to conflicts between different departments in an organisation. This is because ...

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