Management and Organizational Behavior Managing the Organization's Structure Case Analysis: AES Corporation

Essay by Wolfgang61University, Master'sA+, October 2004

download word file, 6 pages 4.5

1) How would you describe the organizational culture at AES?

2) How would you describe the organizational structure at AES?

3) Why is AES going through major restructuring?

AES Corporation is a global power company that is going through major changes in its organizational culture and to its organizational structure due to several events of the past few years. This is a company that grew extremely fast in so little time, that their management found themselves not being able to keep their operations and finances under control. AES corporation has been forced to reevaluate and redesigned its organizational culture and to its organizational structure to avoid bankruptcy.

The organizational culture of AES is one of change, with the drive to outperform and succeed as their major objectives. The organizational structure of the company has also transformed to be more competitive in critical juncture on the companies history. AES is going through a major restructuring to regain control of its operations and finances in order to stay competitive on the global market.

This paper will describe the organizational culture and structure of AES in the past and what the corporation has done to correct its previous flaws. It also provides the reasoning behind the major restructure that corporation had to go through in order to stay afloat. I will evidence these findings with facts and opinions from subject matter expert's papers, documents and other related materials.

Organizational Culture

The culture of AES was based on an ideal that self-motivated individuals will work harder if they do not have a boss micromanaging every action. The unique structure of AES had allowed it to grow and react more quickly to changes than its competitors. The reason for the quick responsiveness is simple; it is much easier to get a project started...