Which is a potential disadvantage of delayering?

Which is a potential disadvantage of delayering?

• A. Faster communication within shorter chain
• B. Improved staff promotion opportunities
• C. Redundancy payments will cost the organisation a significant amount of money
• D. The organisation will become less responsive to changes in the market

Answer: (C)

Delayering trims the number of management levels, which can speed up decisions and improve how information flows. But a real downside is the financial hit from redundancy. When roles disappear, employees may have to be laid off, leading to redundancy payments, severance costs, and related transition expenses. These upfront costs can be substantial and offset the long-term savings from having fewer managers. So, while delayering can bring faster communication and leaner leadership, the guaranteed one-off cost of redundancies makes it a notable disadvantage.

Delayering trims the number of management levels, which can speed up decisions and improve how information flows. But a real downside is the financial hit from redundancy. When roles disappear, employees may have to be laid off, leading to redundancy payments, severance costs, and related transition expenses. These upfront costs can be substantial and offset the long-term savings from having fewer managers. So, while delayering can bring faster communication and leaner leadership, the guaranteed one-off cost of redundancies makes it a notable disadvantage.