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A multinational manufacturing firm has 1200 employees. The top executive is a CEO who supervises all. The manager wants a span of control of 12. How many first‑level supervisors are required, and how many total hierarchical levels are there if each supervisor reports directly to the CEO and every manager above has a span of 12?

hard 4 marks Class 12 · Business Studies · Principles of Management
Answer
100 first‑level supervisors; 3 hierarchical levels

The correct answer is 100 first‑level supervisors; 3 hierarchical levels — Total hierarchical levels (including CEO) = 3.

Step-by-step solution

  1. Compute number of supervisors: 1200 ÷ 12 = 100.
  2. Since 1200 is divisible by 12, no extra supervisor is needed.
  3. Thus 100 first‑level supervisors are required.
  4. Hierarchy: Level 1 – CEO; Level 2 – 100 supervisors; Level 3 – 1200 workers.
  5. Total hierarchical levels (including CEO) = 3.
Common mistake: Ignoring the inclusion of workers as a separate level

Concept tested: Span of control calculation

Published · How this solution was prepared and checked

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