ISSN No: 2231-5063
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Article Name :
Dynamics Of Corporate Governance In Practice
Author Name :
P. D. Shinde
Publisher :
Ashok Yakkaldevi
Article Series No. :
GRT-2985
Article URL :
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Abstract :
In this connection it is interesting to observe the findings which the American Management Association published in 1952 giving the result of survey of one hundred large corporations (over 5,000 employees) the purpose of which was to ascertain the number of executives reporting to the president. The findings clearly show the extent and nature of the span of management as it is actually found in industry. The number of executives reporting to the president is clearly larger than the number advocated by several writers on this subject. “Though prevailing practice dose not necessarily prove the correctness of policy, the action of successful company presidents, often under competitive conditions should be taken into account.” Generally the number of executives reporting to the president range from one to twenty four, with the median number of subordinates supervised by the president between eight and nine. In a similar survey covering forty one medium sized corporation (500 to 5000 employees), the median was found to be somewhat lower than in lager companies, with between six and seven subordinates reporting to the president. The range between the lowest and highest number of executives reporting is also less. Date feels that “ the reduced median and range reflect the lesser volume of important problems faced by the smaller corporations and smaller number of people required to assist the president in coordination and control.”
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