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Can firms oversee more workers with fewer managers?

Author

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  • Valerie Smeets

    (Aarhus University, Denmark)

Abstract

Managers are supervising more and more workers, and firms are getting flatter. However, not all firms have been keen on increasing the number of subordinates that their bosses manage (referred to as the “span of control” in human resource management), contending that there are limits to leveraging managerial ability. The diversity of firms’ organizational structure suggests that no universal rule can be applied. Identifying the factors behind the choice of firms’ internal organization is crucial and will help firms properly design their hierarchy and efficiently allocate scarce managerial resources within the organization.

Suggested Citation

  • Valerie Smeets, 2017. "Can firms oversee more workers with fewer managers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 333-333, February.
    • Handle: RePEc:iza:izawol:journl:y:2017:n:333
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    References listed on IDEAS

    as
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    12. Smeets, Valerie & Warzynski, Frederic, 2008. "Too many theories, too few facts? What the data tell us about the link between span of control, compensation and career dynamics," Labour Economics, Elsevier, vol. 15(4), pages 687-703, August.
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    Cited by:

    1. Gerten, Elisa & Beckmann, Michael & Bellmann, Lutz, 2018. "Controlling working crowds: The impact of digitalization on worker autonomy and monitoring across hierarchical levels," Working papers 2018/09, Faculty of Business and Economics - University of Basel.
    2. Gerten Elisa & Beckmann Michael & Bellmann Lutz, 2019. "Controlling Working Crowds: The Impact of Digitalization on Worker Autonomy and Monitoring Across Hierarchical Levels," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(3), pages 441-481, June.

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    More about this item

    Keywords

    hierarchies; span of control; assignment; learning; knowledge; human resource management practices;
    All these keywords.

    JEL classification:

    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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