Who lives in the c-suite?
Subtitle: organizational structure and the division of labor in top management
By: Maria Guadalupe, Hongyi Li, Julie Wulf
Contributors: Li, Hongyi; Wulf, Julie, 1956-; Harvard Business School
Edition: Revised edition
Series: Working paper / Harvard Business School -- 12-059; Working paper (Harvard Business School) -- 12-059
Publisher: Harvard Business School
Published: 2013
Place of publication: Boston]
Language: eng
Number of pages: 38
Description: Top management structures in large U.S. firms have changed significantly since the mid-1980s. While the size of the executive team--the group of managers reporting directly to the CEO--doubled during this period, this growth was driven primarily by an increase in functional managers rather than general managers, a phenomenon we term "functional centralization." Using panel data on senior management positions, we show that changes in the structure of the executive team are tightly linked to changes in firm diversification and IT investments. These relationships depend crucially on the function involved: those closer to the product ("product" functions, e.g., marketing, R&D) behave differently from functions further from the product ("administrative" functions, e.g., finance, law, HR). We argue that this distinction is driven by differences in the information-processing activities associated with each function and apply this insight to refine and extend existing theories of centralization. We also discuss the implications of our results for organizational forms beyond the executive team.
Notes: "June 18, 2013."

Includes bibliographical references (pages 26-30).