Neliphen Hitech Ltd. is a large-scale private-sector manufacturing company that has been running with a huge profit for the past 13 years. It has an exceptionally good sales force and marketing network all over the country. It has divided its market into five regions: east, west, north, south, and central. Abhay Patil is entirely responsible for marketing in the eastern region. Abhay, a very dedicated and committed worker, is a competent person in the organization. As a marketing manager, he keeps himself engaged with the problems of the sales and marketing teams. He periodically conducts market research to understand the fluctuating market environment. He also tries to obtain feedback on product quality, price, and design to improve the processes. Abhay is very competent in developing marketing strategies compared with other territory managers. He has been recognized for his efforts. He heads around eight middle-level managers and five junior-level managers. He ensures that he conducts a biweekly performance meeting with the managers reporting to him. Because the span of management was manageable for Abhay in the eastern region, he could achieve better sales and profit.

Vineet Mehta, a marketing manager for the southern region, resigned recently because of a better opportunity. The southern region started to run into losses. The situation became critical for the company. To manage this critical situation, the management asked Abhay to take up the dual responsibility of managing the southern region as well. Because the southern region is much bigger than the northern region, the task was challenging for Abhay. Since the management needed one month for the selection of a manager for the northern region, Abhay agreed to the management’s decision. He started managing two regions. Therefore, all the subordinate managers from both regions started reporting to him and taking his guidance. He found that he was not able to have regular follow-up meetings with the middle-level and junior-level managers and the sales teams for the regions. Because there was a delay in becoming aware of the marketing problems in the new and existing regions, he failed to take strategic decisions for both. The situation later reached such a state that he could not control either his region or the new one.
A periodical review of all regions happened, and the top management realized that the regions under Abhay had fallen drastically within a period of two months. Abhay was called by the top management for an explanation of the poor performance. Abhay explained that he took up the additional responsibility of the new division for only one month so that the organization would have sufficient time to recruit a new manager. However, since there was a delay in appointment, both regions became unmanageable for him to handle. Moreover, the span of control was broad to manage singly.
Within a week, the organization appointed a new marketing manager for the northern region and relieved Abhay. Abhay was satisfied with the decision because now he could focus on the performance of his region.
Questions
1. The company could have avoided the loss. Comment.
2. Higher levels of management can lower the communication and flow of information with subordinates. Comment.
3. How does a span of control affect managerial control at the operation level?