Span of Control Related Case Study - Banking Diploma Preparation

Mr. Sadiq is the Managing Director (MD) of ABC Bank PLC. Three Deputy Managing Directors (DMDs) report directly to Mr. Sadiq. DMD-1, DMD-2 and DMD-3 oversee corporate banking, consumer banking, and Internal Control and Compliance (ICC) division of the bank respectively. The corporate banking division has 6 managers, consumer banking division has 8 managers, and ICC division has 5 managers. Determine the span of control of the MD and each of the three DMDs. Who has the highest span of control among them?

Solution

Span of control refers to the number of employees who report directly to a manager.

Span of Control of the MD:

Three DMDs report directly to the Managing Director.

Span of Control = 3

Span of Control of DMD-1 (Corporate Banking):

Six managers report directly to DMD-1.

Span of Control = 6

Span of Control of DMD-2 (Consumer Banking):

Eight managers report directly to DMD-2.

Span of Control = 8

Span of Control of DMD-3 (ICC Division):

Five managers report directly to DMD-3.

Span of Control = 5

Conclusion

MD: Span of Control = 3

DMD-1 (Corporate Banking): Span of Control = 6

DMD-2 (Consumer Banking): Span of Control = 8

DMD-3 (ICC Division): Span of Control = 5

Therefore, DMD-2 (Consumer Banking) has the highest span of control, with 8 direct reports.