AES Corporation--Culture and Structure

AES Corporation, integrity of the worlds leading power companies in twenty half dozen countries, is currently a Fortune 300 company founded by Roger Sant and Dennis Bakke. AES went through remarkable growth during the 1990s with assets jumping from $11 billion in 1997 to $37 billion in 2001. currently afterwards the volatile market caused AES to begin a study restructuring effort which included the sale of assets not unless for runniness but also for ?strategic reasons?. (Hamilton, 2003) Despite their financial crunch, in 1991, 1992 and 1993, Forbes magazine recognized AES as one of Americas fastest festering companies. This paper will discuss the organizational culture and social structure at AES and the reasons for its reformation.

According to Martha Hamilton of the Washington Post, the company lacked a wholesome structure. Because there were less than 200 employees at the facility level, everyone knew one another. Personal relationships formed which kept accountability to a minimum. With only three layers of management separating entry-level employees from plant supervisors, in addition to no in-house finance, HR, or Ops department, each facility was left the responsibility to traverse their own issues and problems. Their makeshift HR person(s) or Accounting force lack the qualifications to effectively or legally.



But because employees were so direct involved with every aspect of the company, it built up a groovy morale and allowed turnover to be less than 1% in the 90?s.

Challenges that AES faced when the reality of the restructuring took place were ever-changing the culture of current employees to match that of the new employees. They initially change magnitude the number of Head Quarter employees from eighty to almost two hundred-fifty bringing in new managers, supervisors, etc. Another great challenge to overcome was integrating the new and old employees without losing the feel of work from the already established...

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