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.

Related Business Studies A Level answers

All answers ▸

How do you work out breakeven?


List and explain 2 theories of motivation, and give an example of how they can be applied in practice.


What is Price Elasticity of Demand?


Explain the benefits of a firm benefitting from Economies Of Scale


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 2013–2024

Terms & Conditions|Privacy Policy