Delayering

• What is delayering?

  The removal of layers in the organisational hierarchy to create a flatter structure
• What are the advantages of delayering?

  • Speeds up decision-making and communication
  • Reduces wage costs, especially in middle management
  • Can empower employees with greater responsibility
• What are the disadvantages of delayering?

  • Loss of experience and leadership if too many middle managers leave
  • May reduce promotion opportunities, causing dissatisfaction
  • A too wide span of control can lead to less personalised communication - reducing morale
• When would a business want to delayer?

  • The business needs to adapt quickly
  • The organisation is too hierarchial (e.g. role culture)
• When would it not be appropriate for a business to delayer?

  • During times of rapid growth
  • Tight control is needed (e.g. mechanistic environments like manufacturing with low-skilled labour)