Business – 7.1 Organisational structure – Types of structure | e-Consult
7.1 Organisational structure – Types of structure (1 questions)
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Delayering is the reduction of hierarchical levels to create a flatter structure. The typical process includes:
- Strategic review: Senior management assesses the current structure against strategic objectives.
- Job analysis: Roles are examined to identify overlaps and redundant supervisory positions.
- Redesign plan: A new reporting line is drafted, often combining supervisory functions.
- Implementation: Employees are reassigned, redundancies are managed, and communication is maintained throughout.
- Monitoring & evaluation: Performance metrics are tracked to ensure the flatter structure delivers the intended benefits.
Advantages:
- Reduced overhead costs through fewer managerial salaries.
- Improved communication and quicker decision‑making because fewer layers separate staff from top management.
Disadvantages:
- Potential overload for remaining managers, leading to stress and reduced effectiveness.
- Loss of clear career progression, which may demotivate employees seeking advancement.