Learn: Delayering - What It Is and Why Businesses Do It

Welcome!You've already learned about organisational structure, chain of command, and delegation. Now, let's build on that knowledge by exploring delayering—why businesses use it and how it can impact their operations.

What is Delayering?Delayering is when a business removes layers of management from its organisational structure. This typically results in a flatter structure with fewer levels of hierarchy. It's important because it can make communication faster and improve decision-making.

Why Do Businesses Use Delayering?Businesses use delayering to reduce costs by cutting management roles, improve communication by shortening the chain of command, and empower employees through greater responsibility. However, it can also lead to increased workloads for remaining staff.

Advantages of DelayeringDelayering can reduce costs because fewer managers mean fewer salaries to pay. It can also speed up communication, as there are fewer levels for information to pass through. Additionally, employees may feel more empowered with greater responsibility.

Disadvantages of DelayeringWhile delayering has benefits, it can also create challenges. Remaining staff may have heavier workloads, which can lead to stress and decreased morale. It may also result in a loss of expertise if experienced managers are removed.

Impact of Delayering on CommunicationWith fewer layers, information can flow more quickly between employees and management. This can make decision-making more efficient and reduce misunderstandings caused by long chains of command.

Delayering and Span of ControlWhen layers are removed, managers often have a wider span of control (more employees reporting to them). This can be efficient but may overwhelm managers if the span becomes too wide.

Review Time!Great work! You've learned about what delayering is, why businesses use it, and its advantages and disadvantages. Let's test your understanding with a few questions.