In principle, neither decentralization nor centralization is right or wrong. Wide and Narrow Spans of Control. A wide span of management exists when a manager has a large number of subordinates. A narrow span exists when the manager has only a few subordinates. Several factors determine the span that is better for a particular manager.
Organizational height is the number of layers, or levels, of management in a firm.
The span of management plays a direct role in determining the height of the organization. If spans of management are wider, fewer levels are needed and the organization is flat . In a taller organization, administrative costs are higher because more managers are needed. Communication among levels may become distorted. All managers in a flat organization may have to perform more administrative duties because there are fewer managers.