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Changes in Organisational Structure
Transcript of Changes in Organisational 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.