In organizational design, which concept specifies how many direct reports a manager oversees?

• A. Spatial Differentiation
• B. Span of Control
• C. Relationship Management
• D. Silo Effect / Stovepipe

Answer: (B)

Span of control is the number of direct reports a manager oversees. This concept directly captures the extent of a manager’s immediate supervision and shapes how an organization is structured—whether it’s flatter with many reports per manager or taller with fewer reports and more layers. A wider span of control means more direct reports, quicker decision-making, and less administrative overhead, while a narrower span leads to more supervision and development opportunities but more managerial layers and potentially slower decisions. The other terms refer to different ideas: spatial differentiation is about the physical or geographic placement of units; relationship management focuses on handling interactions with people and groups; and the silo/stovepipe effect describes departments working in isolation and hindering cross-functional collaboration.