The Benefits of a Wide Span of Control in a Company

The process of forming your own company can be very exciting as every businessperson expects success and anticipates many other prospects ahead. Reaching industrial landmarks, establishing market share and being your own boss are only a short list of these benefits that lie somewhere beyond the horizon of entering an industry as a newly formed business.

Although it sounds simple and straightforward, company formation can be very difficult and it is common that many entrepreneurs’ companies or business ideas fail to materialise because of the problems encountered during the formation phase. Apart from complying with the legal requirements, setting up bank accounts and other external work, there are internal issues that need addressing to make sure your company sets off to a flying start once you open for trading.

Management structure is a one of the most important internal issues. This essentially defines how the company structure will be set up from the manager to his less skilled subordinates. There are two management structures which are narrow and wide span of control. This blog, which will discuss the advantages of a wide span of control, is the first part of a 2-part article covering management structures.

Decision-making

Adapting a wide span of control allows the company director to include his subordinates during the decision making process. In this case, the employees are given the chance to speak up which not only increases job satisfaction due to employees feeling valued but also helps the manager make wiser decisions.

Communication

One of the most prominent features of a company with a wide span of control is that there are fewer managers. This clears the communication barrier between the employees and the personnel at the top of the hierarchy as direct communication between the two parties is encouraged.

Rapport

As employees can directly communicate with the directors, it allows the formation of employer-employee rapport creating trust! This is important especially in small companies where if the business owner trusts the employee they can delegate important work to them. The significance of this is that the manager can assess employees’ strengths.

It is fundamental that before you think about opening as a company to consider how you will manage the firm. However, business leader tend to forget such aspects as the formation process overwhelms them. In this case, make sure you seek guidance from companies like us at eformations. We are a company that specialises in company formation services to take the burden off entrepreneurs’ shoulders. If you require more detail about the services available here, please do not hesitate to contact us, our team of experts is always at hand to help.

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