Organizational Structure of Hershey

http://www.theofficialboard.com/org-chart/hershey

The organizational structure of Hershey consists of only a few layers according to this site as they only show the upper levels of hierarchy. However there are other layers that are not shown that are part of the middle and bottom. At the top of the level of hierarchy is the CEO of the company, David West. He is at the top of the chain of command along with the Chairman of the Board and a number of directors where West passes down orders. These people have a high level of authority and responsibility in the business. However, only West has subordinates and a span of control. He has a wide span of control showing that he is the authoritative power of these different departments of the business. Therefore, he holds a large amount of responsibility on the firm in making decisions. This shows the centralization of the business since the majority of decision making is done by a small number of people and in this case it is David West, Kenneth Wolf and the other directors. Although, only West is directly in charge of his subordinates.

With a large number of subordinates working under the CEO, this suggests a wide span of control which means that the company has a flat organizational structure. It has only a few layers. Many departments operate in the same level which means that responsibilities have been delegated to them and West holds them accountable for certain aspects of the business. However since he makes the decisions as the CEO, he is still held accountable for the success or failure of them. Having a wide span of control and a flat organizational structure, Hershey can benefit from improved communication and a sense of unification between workers.