Span of Control: An Exploratory Analysis for High-Tech Organisations

Abstract

This thesis investigates the complex dynamics of determinants on span of control within high-tech organizations, with a particular focus on what factors unique to these settings influence span of control. The main research question addressed is: ”How can high-tech organizations determine their span of control?” Through a comprehensive exploratory approach, including qualitative interviews with managers and quantitative data analysis, this research aims to clarify the internal and external factors impacting span of control in high-tech environments. Specifically, it explores how task complexity, team interdependence, geographical factors, and industry specific requirements shape the span of control in ways that differ from traditional industries. The study finds that in high-tech organizations, where task complexity and interdependencies are notably high, a narrower span of control is often required to maintain oversight and quality. However, regional cultural differences also play a critical role, as broader spans are more feasible in high-powerdistance regions due to the cultural acceptance of hierarchical structures. In contrast, low-powerdistance regions tend to favor narrower spans, aligning with preferences for direct managerial oversight. This study also underscores the influence of regulatory requirements, particularly in sectors like semiconductor manufacturing and medical devices, where compliance and precision necessitate close supervision. These factors collectively indicate that span of control in high-tech organizations must be highly adaptable, tailored not only to task demands but also to regional and regulatory contexts. Additionally, the research highlights the potential for technology to enable broader spans of control, albeit with limitations. While automation and digital tools can reduce the need for close supervision in standardized tasks, they do not entirely eliminate the necessity for managerial oversight in complex, interdependent tasks. High-tech managers, particularly those in field service roles, face unique challenges balancing direct customer engagement with team management. This dual responsibility can restrict their capacity to manage broader spans effectively, suggesting a potential role for specialized support roles or digital solutions in handling routine (customer) interactions to allow managers to focus on strategic team oversight. Financial considerations are also prominent, with broader spans offering potential cost savings by reducing the number of managerial layers. However, these benefits must be weighed against operational demands, as broader spans may compromise quality in highly complex environments. Examples of calculations are presented in this study to illustrate possible financial effects of span adjustments. In conclusion, this thesis emphasizes the necessity of a context-sensitive approach to span of control in high-tech environments, where a balance between technological support, regulatory requirements, and cultural influences is crucial. Recommendations for future research include longitudinal studies to observe how technological advancements might further impact span of control over time and expanding sample diversity to encompass a broader range of high-tech sectors. This research contributes to the field by providing a nuanced framework for understanding span of control in complex, dynamic settings, offering practical insights for high-tech organizations.