The problem with too many layers of management is mainly that they stop doing what they should do. Making decisions. The lowest management layer cannot make any decisions alone, otherwise the next layer would have no reason to exist. The next layer might even have to hand over the decision to one layer above. Up there no one really understands the decision that needs to be made because they are too far away from the…
There is some limit to how many people you can manage effectively. So, in a company with, say, 10,000 employees, you can't have just one layer of management between COs and ICs. You'd either need each manager to work with 500 direct reports, or you'd need the COs to work with 500 managers. If we look at 100,000 employee orgs, this gets even sillier. If you even attempt something like this, what will actually happen w…
It should be possible to manage 22 employees if you are good at setting directions and explaining why those directions have been chosen. You can have 22 people in one room and do functional group discussions, this is like a good size for a school class.
1 CEO -> 22 level A managers
each level A manager -> 22 level B = 22 * 22 = 484 level B
each level B manager -> 22 level C workers = 484 * 22 = 10648 workers.
I have yet to see a company with 10_000 employees and only 2 levels of management between workers and the CEO.If you add another management layer, it is only 10 people per manager. This is not much and quickly gets into micromanagement if the manager works fulltime at managing.