Increase or decrease the complexity of the organization

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In June 2009, the CEO of Fiat took on the management of Chrysler and began a project with the objective of joining the two companies. He chose to “flatten” the management organization by increasing the number of people who report to him from a “handful” to twenty-three. Video conferences between the Chrysler and Fiat management teams take place from a conference room in Chrysler headquarters in Michigan where there are twenty-three seats and microphones for the Chrysler team members. What do you think are the pros and cons of changing the CEO’s span of control in this manner? Will this increase or decrease the complexity of the organization? Your answer should display an understanding of span of control and organizational complexity.

Reference no: EM131398214

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