BUISENESS MANAGEMENT
BUSINESS STRUCTURE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increases (wider) the span of control of managers
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decreases (narrower) the span of control of managers
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No change to the span of control
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None of the above
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Detailed explanation-1: -Delayering usually means increasing the average span of control of senior managers within the business and is seen as a way of reducing operating costs, particularly as a response to the economic downturn.
Detailed explanation-2: -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.
Detailed explanation-3: -Delayering can help to improve communication and decision-making, and reduce costs. It can also help to make the organization more agile and responsive to changes in the environment.
Detailed explanation-4: -Higher average span of control means fewer layers of management within the organization and a relatively flatter organizational structure. This can lead to: Faster decision-making due to fewer levels of approvals required for a specific decision, which allows the company to respond more quickly to business issues.