SPAN OF CONTROL
Corporations often see a shift in executive teams throughout the course of their existence. Often times when during a company merger, acquisition, or a vote by the Board of Directors to replace the company’s leadership, a new style of management will emerge. Different leaders have various ideas on how the management of the company is to be handled. Some CEO’s like to have a small executive team, with separate areas of the business combined into segments and receive reporting through their direct reports, while others like to have a large executive team with a different leader for each business segment. With the number of different management styles out there, employees need to be able to adapt to these changes.
In the example provided, the CEO of Fiat decided to flatten the management organization between Fiat and Chrysler. In doing so, the CEO increased the number of direct reports he had under his span of control. In reducing the number of management levels, each of his direct reports had a broad area of the business to control and be responsible for. The move to flatten the span of control allows the business to bring out its employees talents, skills, and strengths. A move like this can be a positive one for the employees as it boosts morale and gives power to the employees of the business to collaborate and be a part of the company’s success (Griffin, 2012). Giving everyone in the organization the feeling of having a voice is a good way to keep all employees engaged and passionate about the company’s success. The change in the management structure promotes the business to the workforce and provides an opportunity for the management team to build on the success of its employees.
While a flat management structure has some positives, there are also some issues that leaders should keep a watchful eye out for to ensure the shit in control is successful. Managers in a flat structure need to be sure to share any research or...
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