Span of control captures a basic structural choice: how wide or narrow each manager's team is. Wide spans, with many direct reports, tend to flatten the organization and push autonomy down. Narrow spans add layers and tighten oversight.
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Neither is right in the abstract. The appropriate span depends on the work: routine, similar tasks support wide spans, while complex, varied, or high-risk work usually needs closer management and therefore narrower ones.
Span of control also drives cost and speed. Every added layer adds coordination overhead and lengthens the path a decision travels, which is why it is a recurring lever in operating-model and organizational redesign.