EFFECT OF SPAN OF CONTROL ON DECISION-MAKING EFFECTIVENESS OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study employs an ex-post facto research design to examine the effect of the span of control on decision-making effectiveness in Nigerian deposit money banks (DMBs). Employing ordinary least squares (OLS) multiple regression analysis, with 98 observations the findings indicate that managerial workload positively and significantly affects decision-making effectiveness in Nigerian DMBs. Additionally, communication efficiency enhances decisionmaking effectiveness, and organizational agility contributes considerably to this effectiveness. The study highlights the importance of managerial workload in preventing poor decision making among bank managers. It is recommended that promoting managerial ownership within financial institutions and enhancing communication efficiency are crucial, as these measures help mitigate management's opportunistic behaviors, which could lead to creative accounting practices. Moreover, the study suggests that improving the organizational structure to increase agility encourages managers to involve more subordinates in decision-making processes, enhancing overall decision-making effectiveness.