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Changes in Organisational Structure

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Inveralmond chs

on 15 November 2012

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Transcript of Changes in Organisational Structure

TYPES OF CHANGES CHANGES IN ORGANISATIONAL STRUCTURES Delayering This involves reducing staff levels by cutting out levels of management to flatten the structure.

This creates a smaller hierarchy where each manager has an increased span of control.

Delayering helps to:

- improve communication
- make decision-making quicker and more effective
- empower staff
- cut costs as there are fewer management salaries to pay
- allow an organisation to respond more quickly to market changes
Questions Downsizing This involves removing certain areas of the organisation's activities by closing factories or merging divisions together.

A business may downsize then outsource some functions.

Downsizing helps to:

- cut costs and increase profits
- empower remaining staff
- become more competitive and efficient

However, downsizing may lead to a company losing valuable skills, experience and knowledge of many staff resulting in low staff morale during the downsizing process.
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