Is the organizational structure of the investment company reasonable?
Advantages and disadvantages: (1) The board of directors integrates decision-making power and supervision power, which is convenient for decision-making, implementation and supervision, but there is usually an inevitable contradiction between the personal interests of directors and the interests of all shareholders. Especially when the director himself holds a management position in the company, the interests between the two often conflict. (2) Highly decentralized ownership structure can reduce investment risk. (3) Stock option system has become the main means to motivate managers. 2. Why does GE constantly reform its organizational structure? There is a general view in organizational management that the more management levels, the worse the flexibility of the organization. However, we can see that the change of "strategic division of labor" in the history of organizational management of General Electric Company has not simplified the organizational level, but has greatly improved the organizational flexibility of General Electric Company, which has produced great benefits in that year. It can be seen that "the more management levels, the worse the flexibility of the organization" is a misunderstanding in organizational management. There is no inevitable correlation between organizational flexibility and management level, but the "decision point" in organizational structure is the inevitable correlation of organizational flexibility.