MGT111 VU GDB Solution Spring 2012

Mr. Sheraz is intending to start a new business, with himself as CEO, in services sector. Most
probably, there would be people from Marketing, Finance, Human Resources and Customer Services.
But he is on the cross roads to decide how to structure the departments so that organization may not
only start but also to ensure the supervision of employees as well. His friend Mr. Yasir advised him to
hire people who carry experience in their respective domain and also provide them sufficient authority.
It is also important to mention that the nature of business requires handsome number of people in all
the departments.

Since all the employees are mostly trained and also carry sufficient authority, suggest the number of
hierarchies that may be there and also the type of span of control. Justify your answer with reasonable


The span of control refers to number of employees that directly report to a single manager. Span of control determines the structure of an organization, a narrow span of control results in hierarchal organization while broad span of control leads to flat structure.

Since management represents the activities that do not directly result in productivity, they are rather a overhead, span of control determines the additional operational cost. Quantitatively, companywide overhead can be calculated by dividing the total number of management staff with the size of organization.The Hierarchy can be following:
1) Directors
2) Manager Hr
3) Asst. Manger Hr
Human resouces officer

4)General Manager Marketing and Customer Services
1) Marketing Manger
2) Asstt. Manager Marketing.
3)Relationship Mangers
4)Customer Relationship Officers
5)Sales officers
General Manger Finance
a) Control Of accounts
b) manager accounts
c) manager treasury
d) manager costing
e)Account officer