Enhance your skill set – Learn how Caterpillar increases organization effectiveness, improves communications, and manages compensation costs by optimizing its management structure. As Caterpillar learned, compensation issues aren’t always about pay levels. Sometimes they are about the number of managers and management layers an organization has, which in turn is driven by the number of direct reports each manager has (also called the manager’s “span of control”). By managing spans of control, Caterpillar directly impacts its cost, organization effectiveness, communications, employee engagement, and manager-employee relationships. Unless organizations actively manage spans of control, they are likely to find more that are either too broad or too narrow and fewer that are just right.
