I recently reviewed on of our branch offices. The teams were very fragmented under our current manager. Three teams of 1 under our Technical Services groups. They really didn't report under our current team structure and really not at all.
I reorganized the teams so all our technical services people report to our current manager for technical services -(was a team of three) and now will be a team of six.
My direct came back after the weekend and requested a large salary increase as he is now managing "twice the people" - This was mostly an organizational effort and that these people now are all in the same staff meetings get the same communications and more collaboration.
What are some guidelines I can use for what is fair, when does additoinal staff mean extra pay? To me increased profits means extra pay. To increase costs without performance (profits) is not a good business decision in my mind.
Do I back out of the direction I've taken?, just say no or ?????????????