A naukri.com initiative
Insider
1M
214
Image Credit: Insider
Big Tech is winning the battle of the bulge
- Big tech companies like Microsoft, Intel, Amazon, and Google are cutting middle management jobs to increase efficiency and decision-making speed.
- Flattening structures can be beneficial but companies risk cutting too many managers, leaving remaining staff with too many direct reports.
- Intel emphasized more time in the office and leaner teams with CEO Lip-Bu Tan stating that 'the best leaders get the most done with the fewest people.'
- Amazon and Google have also increased the ratio of individual contributors to managers, aiming for efficiency.
- Meta's CEO Mark Zuckerberg advocates for a flatter structure, mentioning that 'flatter is faster.'
- The shift to reduce management layers aims to speed up decision-making and connect employees more closely to the organization.
- Companies like Dell and Bayer have introduced new organizational setups to delegate decision-making to employees closer to customers or technology.
- While reducing middle management can improve efficiency, it can also lead to challenges like employees handling more direct reports and increased meeting times.
- Research indicates that the quality of managers is crucial for team performance, regardless of the number of direct reports.
- Strong managers play a significant role in developing talent and impacting a company's bottom line.
- While flattening structures can enhance decision-making, it may hinder future growth if not managed effectively by developing capable leaders.
- Overall, the trend of reducing middle management signifies a shift towards leaner, more agile organizational structures focused on enhancing efficiency and innovation.
Read Full Article
12 Likes
For uninterrupted reading, download the app