7.1.4 Control, authority and trust

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Good morning class. Today we are going to talk about control, authority, and trust in an organisation, and why balancing these three elements is so important for a business to operate effectively. Think of a business like a sports team. If the coach gives orders but does not trust players to make decisions on the field, the team struggles. On the other hand, too much trust without any control can lead to mistakes. A successful organisation needs both.

Let’s start with span of control and levels of hierarchy. Span of control refers to the number of employees a manager is directly responsible for. A narrow span of control means a manager has only a few subordinates, while a wide span means they supervise many people. Tall organisational structures usually have a narrow span of control. This allows managers to closely supervise employees and maintain clear reporting lines. For example, a hospital may have specialist managers overseeing small teams to ensure high-quality service. The downside is that communication can be slower and administrative costs are higher.

Flat organisational structures, on the other hand, have fewer levels of management and a wider span of control. This encourages faster communication and gives employees more autonomy. A tech start-up might use a flat structure to foster creativity and innovation. However, managers in flat structures may become overworked, and supervision is less direct.

Now let us discuss authority and responsibility. These two terms are often used together, but they have different meanings. Authority is the right to make decisions, allocate resources, and give orders. Responsibility is the duty to carry out assigned tasks and be accountable for the results. For example, a regional sales manager may give local supervisors the authority to run a promotional campaign. If the campaign does not succeed, the regional manager remains responsible to senior executives. Understanding this distinction ensures tasks are clear and accountability is maintained.

Next, we need to look at control and trust, particularly when delegating tasks. Managers must find the right balance between controlling work and trusting employees. Control ensures that tasks are completed to the required standards and may include supervision, reporting, and performance reviews. Trust, on the other hand, empowers employees, encourages innovation, and boosts morale. Problems occur when this balance is not maintained. If managers micromanage their teams, employees may feel demotivated and creativity may be stifled. If managers trust too much without monitoring, mistakes or unethical behaviour may occur. For instance, a multinational company giving full authority to a country manager without reporting systems could face compliance issues. Conversely, constant interference from headquarters can slow decisions and frustrate employees. The key is to implement clear systems, such as performance indicators and regular reviews, while still allowing employees to make meaningful decisions.

In conclusion, control, authority, and trust are the three pillars of an effective organisational structure. Clear spans of control, authority matched to responsibility, and a culture of trust supported by control systems lead to better decision-making, higher employee satisfaction, a

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