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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.

  1. AWider spans of control, requiring greater delegation and subordinate capabilityCorrect
  2. BNarrower spans of control and closer supervision
  3. CMore levels of management to approve decisions
  4. 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.

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