Edexcel Business A Level Revision

Delayering - flattens an organisational hierarchy by removing levels of management. Organisational structures are dynamic - they change! Indeed a business that doesn't regularly assess how effective its organisational structure may find itself becoming noncompetitive. Delayering involves removing layers of management from the hierarchy of the organisation. Normally it means reducing the middle managers. Frequently, the layers removed are those containing middle managers. For example, many high-street banks no longer have a manager in each of their branches, preferring to appoint a manager to oversee a number of branches. Some schools adopt this policy too – with a director of studies looking after several schools in a local area. Delayering does not necessarily involve cutting jobs and overheads. But it does usually mean increasing the average span of control of senior managers within the business. This can, in effect, chop the number of layers without removing a sin...

Hierarchy - employees are ranked in layers, one above each other. Each has fewer employees than the one below, in a typical pyramid shape. Layers of hierarchy reflect levels of seniority. In the past, tall hierarchies suited businesses that wanted to supervise employees very closely, fitting neatly with an autocratic leadership styles. Responsibilities are clearly defined and there are opportunities for promotion. More layers mean more managers can specialise... but interdepartmental rivalry may reduce efficiency. Flat organisations suit businesses that want to encourage flexibility in the workforce. Some employees who are given more responsibility become more motivated Communication may be easier, faster and more effective In a flatter organisation, decision making may be quicker and clearer and reaction to market change may be faster.