Thursday, July 10, 2025

Will AI Increase "Span of Control" and What Does That Mean for Middle Managers?

Most observers likely believe artificial intelligence will be used to increase span of control, at least to the extent that many supervisory functions can be handled by AI. That "should" create some opportunities to increase "span of control," which should also allow some moves to reduce middle management jobs.


“Span of control” refers to the maximum number of “direct report” humans that can be supervised by a single manager. That number tends to hover between five and eight, but can be wider or narrower depending on the industry and tasks to be supervised. 


But that assumption might not be universally applicable. If and where AI means job functions get more complex, or require even more exercise of "human" skills such as empathy, ethical judgment or complex coordination, then AI might actually decrease spans.


Still, that is likely the exception to the rule. Most observers likely believe that AI will make possible some increases in spans of control.


AI systems might  monitor performance metrics continuously, provide real-time feedback, coordinate schedules and resources and handle routine administrative tasks that previously required human managers. It remains to be seen. 


AI should be able to analyze patterns across larger groups of employees than any human manager could effectively track. So to that extent, middle manager value could decrease somewhat. 


Still, middle managers likely cannot be completely replaced. They translate strategic vision into operational tasks, provide coaching and development, facilitate cross-functional coordination, handle complex interpersonal dynamics and act as information conduits between levels. They also make nuanced decisions that require contextual understanding and emotional intelligence.


The issue is how AI might ultimately be able to become a substitute for some of those functions. 


Industry

Typical Span of Control (Manager:Direct Reports)

Characteristics & Rationale

Call Centers

Wide (1:10 - 1:20+, potentially even 1:100+)

High volume of standardized, repetitive tasks. Employees often follow scripts and procedures. Technology (CRM, call monitoring) assists with oversight, allowing managers to oversee many agents.

Manufacturing, Production

Medium to Wide (1:8 - 1:15+)

Tasks can be repetitive and process-driven, especially on assembly lines. Clear procedures and visual management tools facilitate supervision. Safety protocols often require close monitoring, but experienced workers may need less direct oversight.

Retail (Store Level)

Medium to Wide (1:5 - 1:15+)

Store managers often oversee a team of sales associates, cashiers, and stockers. Tasks are somewhat standardized, but customer interaction and merchandising can add complexity. Varies by store size and type.

Technology, Software Development

Narrow to Medium (1:4 - 1:7)

Work is often complex, requiring high levels of collaboration, problem-solving, and creativity. Teams are typically self-managing to a degree, but managers provide technical guidance, mentorship, and project oversight for highly specialized tasks.

Healthcare (Clinical/Nursing)

Narrow to Medium (1:3 - 1:10)

High complexity, critical decisions, and direct patient care. Requires close supervision to ensure patient safety, quality of care, and adherence to protocols. Nurse managers often have fewer direct reports due to the intensity and criticality of the work.

Executive Management, Leadership

Narrow (1:3 - 1:7)

Deals with strategic decision-making, complex problem-solving, and high-level collaboration. Requires significant individualized attention, coaching, and strategic alignment among direct reports (e.g., department heads, VPs).

Consulting, Professional Services

Narrow to Medium (1:3 - 1:8)

Projects are often unique and complex, requiring specialized expertise and close client interaction. Managers (project leaders) need to provide detailed guidance, quality control, and client relationship management for their team members.

Education (School Administration)

Narrow to Medium (1:5 - 1:10)

Principals oversee teachers, who in turn manage students. The complexity of managing various curricula, student needs, and administrative tasks often leads to a narrower span for administrators compared to highly standardized environments.

Financial Services ( Banking Branch)

Medium (1:6 - 1:10)

Branch managers oversee tellers, customer service representatives, and loan officers. While some tasks are standardized, customer interactions and regulatory compliance require a moderate level of oversight.


And though AI should tend to increase spans of control in most industries, AI could result in a decrease of spans in education and healthcare, two fields where productivity increases are hard to produce. AI might in many cases increase the span of control by reducing the managerial burden. 


But in some contexts it could decrease spans if roles become more complex or require closer oversight of human-AI collaboration. That might also tend to happen when empathy, ethical judgment or complex coordination is required, and that would tend to be true whether we are considering AI or simply span of control issues in general. 


Industry

Current Avg. Span of Control

AI Impact Direction

Projected Change

Reasoning

Manufacturing

5–10

Increase

10–15

AI enables predictive maintenance, process monitoring, reducing oversight needs.

Retail

8–12

Increase

12–18

AI-driven scheduling, inventory, and customer insights reduce manual supervision.

Healthcare

4–6

Mixed

3–7

Clinical AI reduces admin load, but patient safety and human empathy limit scalability.

Finance

6–10

Increase

10–15

AI automates reporting, fraud detection, and customer service functions.

Education

10–15 (academic), 5–8 (admin)

Mixed

8–20 (academic), 4–10 (admin)

AI grading and tutoring help faculty scale, but student engagement needs persist.

IT & Software

6–12

Increase

10–18

AI tools for code review, project tracking, and testing reduce managerial bottlenecks.

Construction

4–8

Slight Increase

6–10

AI in site planning and safety monitoring helps, but physical oversight still critical.

Legal Services

3–6

Increase

5–10

AI in discovery, contract analysis boosts support staff efficiency.

Public Sector, Government

5–9

Slow Increase

6–10

Bureaucracy limits rapid gains, but AI may help in records and citizen services.

Logistics, Transport

6–12

Increase

10–18

AI route optimization and fleet tracking allow for greater managerial reach.

No comments:

"Speeds and Feeds" for Home Broadband: It's the PC Story

Though definitions of “broadband” matter for regulators, advocates and suppliers, in most cases “broadband capability” matters quite little ...