ACCA Strategic Professional · Strategic Business Leader · Enabling success: organising
Teluk Foods has a tall hierarchy with narrow spans of control, and the board wants to reduce costs and speed up decisions by delayering. Which is the most likely consequence of delayering that the board should anticipate?
Delayering removes management levels, so spans of control widen. Managers can no longer supervise closely, so the organisation needs more delegation, empowerment and capable subordinates, in return for lower costs and faster communication and decisions.
- AWider spans of control, requiring greater delegation and subordinate capabilityCorrect
- BNarrower spans of control and closer supervision
- CMore levels of management to approve decisions
- DReduced need for empowerment of staff
Explanation
Removing management layers with the same number of staff widens spans of control, so managers cannot supervise closely and must delegate and rely on capable, empowered staff. Narrower spans and more levels are the opposite effect.
Did you get it right without looking?
One question tells you little. A timed set on Enabling success: organising shows your real accuracy, how long you take and where you lose marks.
More Enabling success: organising questions
- Orvane Pharma operates in 15 countries with very different regulatory regimes and customer needs. The board wants country managers to adapt …
- Zentara Ltd is a regional bakery that makes one product line in one country. Its owner-manager takes all key decisions, and staff are groupe…
- Halvorsen Retail has finance, HR and IT support teams duplicated in each of its six regional divisions. Directors propose consolidating thes…
- Kessler Group, a conglomerate, gives each divisional head full authority over pricing, hiring and investment up to a high limit. Divisions h…
- Norvik Software wins bespoke innovation projects from clients. It staffs each project with temporary multidisciplinary teams of experts who …
- Dunmore Consulting has a managing partner supervising 14 senior consultants. Their work is complex, bespoke and varies by client, and junior…