Research studying how IT affects managers has typically focused on how IT can augment and substitute for manager work. However, previous work has not accounted for the fact that IT also provides managers with new performance feedback as it captures and stores new information. As managers process and communicate this new information, some managers may spend more time coordinating with subordinates based on this new performance feedback. Thus, in some cases IT adoption could lead to managers supervising fewer subordinates, contrary to conventional wisdom and prior results. Using data on hospital divisions, IT adoption, and occupational activities, I find evidence that span of control does indeed decrease for some managers as IT is adopted. The results indicate that the overall results persist for several years and are primarily driven by changes in the number of front-level managers. I take advantage of a shock to IT adoption among hospitals during the sample period to address endogeneity concerns.
