Analyse how delayering might affect the level of profit a business generates.

Delayering is the removal of layers in a business' hierarchy. This can lead to wider span of control for managers which can boost their motivation levels, if they are motivated by level of responsibility and autonomy, a feature of Herzberg's motivational theory. This will lead to higher results and productivity which in turn boosts output and profit levels.
However, a consequence of delayering can mean commination is worsened due to each manager having more subordinates to manage. This can disrupt efficiency and decrease productivity levels so therefore increase costs and lower profits are generated as a result.

ML
Answered by Micah L. Business Studies tutor

3534 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

Define cash flow and explains ways in which a business can improve its cash flow.


Case Study: PLG Ltd’s financial position is relatively weak. To what extent should this be the most important influence on its promotional mix given its objective of growth


Analyse the benefits for a national firm of a government adopting protectionist trade policies?


In 2007, a business had sales of £10 million in a market with a size of £125 million. In 2017 the business's sales were £12.6 million and its market share was 6%. Calculate the percentage growth in the size of the market between 2007 and 2017. (4 marks)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences