A brief introduction here to the concept of delayering - which involves the removal of layers in the organisational hierarchy. Delayering is a key tool or approach in strategic HRM.

1. Delayering

2. Delayering
Delayering involves
removing one or more
levels of hierarchy
from the
organisational
structure

3. Delayering illustrated

4. Advantages of delayering (1)
• Lower costs - as fewer (expensive) managers
are required
• Offers opportunities for better delegation,
empowerment and motivation as the
number of managers is reduced and more
authority passed down the hierarchy
• Improved communication as messages have
to pass through fewer levels of hierarchy

5. Advantages of delayering (2)
• Less departmental rivalry if department
heads are removed and the workforce is
organised more in teams
• It can encourage innovation
• Brings managers into closer contact with the
business’ customers – which should (in
theory) result in better customer service

6. Disadvantages of delayering (1)
• Not all businesses are suited to flatter
organisational structures - mass production
industries with low-skilled employees may not
adapt easily
• Can have a negative impact on motivation due
to job losses, especially if it is really just an
excuse for redundancies
• A period of disruption may occur as people take
on new responsibilities and fulfil new roles

7. Disadvantages of delayering (1)
• Those managers remaining will have a wider span of
control which, if it is too wide, can damage
communication within the business. There is also a
danger of increasing the workload of the remaining
managers beyond that which is reasonable.
• Delayering may create skills shortages within the
business – a danger is that delayering means that the
business loses managers and staff with valuable
experience

8. Follow-up reading on delayering
• Do firms need middle managers?
• How flat should the organisational struct
• Competitiveness and organisational
structure at Aviva
- a great example of delayering

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