Human Resources at the AES Corp Essay

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Human Resources at the AES Corp

Structural Frame

The organisational structure and management systems of AES are well aligned with its set of values and principles of (a) fun at work through making decisions and being accountable, (b) trusting its people by being treated fairly and with respect and (c) social and corporate integrity.
No functional departments: fun but a costly trade-off?
These values are manifest through a simple, five level hierarchical structure. Each plant has three levels - the plant manager, seven area superintendents and front-line staff while a divisional layer oversees the plants and projects by area providing the interaction between the headquarters and plants followed by the CEO.
Each plant comprises a
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Reaching consensus….
The informal and ad hoc management style is further highlighted by the fact that there are no team leaders. In fact, nobody has any formal job description or specific responsibility. While this stimulates creativity, on the other hand it adds to the challenges involved in teamwork, especially in achieving consensus. It also creates ambiguity about individual accountability.

Furthermore, the company operates without any written rules and policies or procedures. These are left at the employees’ discretion to be made to fit on a case-to- case basis. Once again, while this practice expresses the company’s respect for its employees, potentially it gives rise to time consuming negotiations and justifications.

Who has the vision of the big picture?
The CEO’s role is unlike most other traditional companies. He admittedly is solely focussed on AES’s ability to maintain values and live its principles, spending most of time teaching these principles. He has an advisory role while decisions are made at all levels. Although, by avoiding micro-management, this ensures that no bottlenecks are created at the top end in the day-to-day operations, there is no focus on overall corporate strategy in terms of future direction. There is a corporate mission but no corporate business vision, critical for a diversified firm like AES in order to give its employees stability and guidance.

AES’s value-based…

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