Business Studies – Organisational Structure
Evaluate the consequences for Poppies if de-layering is allowed to take place (16 Marks)
De-layering is the process of removing levels from within a business. The primary reason for doing this is to reduce costs, however there can be many consequences if de-layering takes place.
Some positives could be that in the long term removing a layer from a business should lead to reduced costs. The reason for this is that you will no longer have that layer of your business on your payroll meaning you will not need to pay them a wage any more. The flip side of this is that in the short term you may need to pay the workers of the layer you removed a redundancy pay.
Removing a layer of a business can also be seen as a method of making your business smaller. This is the opposite of what Tim wanted to do with his plans for expansion. Conversely, de-layering may lead to Tim needing to hire new staff for new job purposes. This would be expansion and would also give Tim the chance to hire “enough staff of the right quality”, something he was previously worried about. However as I have said, de-layering should in the long term reduce costs and so increase chances of finance towards expansion.
Another effect of de-layering is that it increases the decision making process and decreases the channels of communication. This means that as there are less people to go through and thusly less people to confirm what needs to happen with. Because of this efficiency should be improved within the business when orders are given.
The negative aspects must also be considered. Arguably one of these is that employees would be given more responsibility and more authority, something that Tim specifically wanted to av...
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...en by either the managers of the outlets, or by retraining the outlet staff assistants. This would however incur a cost as you would have to pay redundancies, but it would be a lot smaller than if you were to remove the buyer’s layer. Also it may incur the cost of having to retrain either the managers or the outlet staff assistants on how to do the role of the supervisor and they may demand more pay.
Overall I feel that it would be best to de-layer the business and to do so by removing the supervisor’s layer. This is because it would incur a smaller cost financially to remove this layer and lead to more pro’s such as a quicker decision making process and hopefully a more efficient business. Though I would also suggest to Tim that he allow smaller decisions such as whether an outlet is allowed to re order new stock, be down to the managers of the individual outlets.
The current economic downfall has forced many organizations to strategically restructure and downsize. Broadway Brokers is not immune to these economic challenges and has been faced with competition from discount brokers and Internet brokerage services. Broadway Brokers position of holding the largest market share has been jeopardized by their slow reaction to the shifting changes within the industry. Broadway Brokers staff possessed strong selling and interpersonal skills however lacked in their knowledge of the high tech skills that had been inundating the market. The organizations lack of adapting to new technology and their absorbent overhead was threatening their profitability. The organization was faced with the need to restructure, consolidate, and implement employee layoffs in order to remain competitive with the current financial climate. Rumors of impending office consolidations and staff layoffs had existed for some time. However, the CEO commentary in a Financial Times article confirmed such gossip. In fact, decisions had already been made by top management to enact a structural plan that would severely curtail offices, close offices, and reduce the level of employees across the organization. Top management was firmly fixed upon downsizing and consolidation and was now relying on its management staff to come up with a plan to implement a transition. A dozen of the company’s most respected managers – everyone from assistant vice presidents to managing directors were join together to devise a plan for change (Jick & Peiperl 2003).
But divesture of three out of four divisions leads to a very small portfolio which leads to chances of high risks as well. The process of restructuring and forming a better portfolio would provide the firm with a lot many opportunities including exploring newer and more compatible product lines and segments, thus increasing its opportunities to earn better revenues with efficient management.
Negative Results. The negative outcomes of consolidation are often seen in the financial and public relations aspect of consolidating. One of the most prominent and controversial as...
Kets de Vries M.F.R. & Balazs, K. (1997). The Downside of Downsizing. Human Relations, 50, 11-50.
Providing employees the right to select a union to act as their collective bargaining agent.
I hit home the point with your staff the need to enter and track all merchandise items in the POS system. At the same time, your key staff members
Other controls such as bonding and requiring employees to take vacation or changing their job position
...e potential for a highly fragmented and highly unequal job market or one that embraces the changes listed above and works towards better unity amongst workers, unions, and government.
At this point in time, our company is non-union and believes the disadvantages of unionization to be greater than those benefits which may come from it. Many of the benefits which are supposed to come from unionization are canceled by various disadvantages. Additionally there are several, negative effects brought on by joining labor unions which should make any employee think long and hard before they begin the process of joining a union.
One huge disadvantage that employers face with the use of telecommuting is losing direct control over the employees.
The Destroy Your Business strategy (DYB) entails a strategic plan developed, and implemented by the company leadership, and employees. The plan is to destroy a company 's weaknesses, as well as business units that are less beneficial or do not add value to the enterprise 's performance. The DYB strategy is essential in the sense that if a company does not identify and crush its weaknesses, competitors will use those weaknesses to their advantage. On the other hand, the Grow Your Business strategy (GYB) entails finding innovative ways of reaching new clients and better ways to serve the existing ones. Thus, the DYB strategy helps in completely disrupting the current practices of a business
Organizational changes that reduce cost. The M&S reduced its management levels to reduce the cost.
Although Taylor's method led to dramatic increases in productivity and to higher pay in a number of instances, workers and unions began to oppose his approach because they feared that working harder or faster would exhaust whatever work was available, causing layoffs.
? It put planning and control of workplace activities only in the hands of managers.
The first two do not require the acquired business unit to be connected with the existing units; the second two depend on connection. Although the concepts are not always mutually exclusive, the way in which they generate value for the corporation is different for each. The portfolio management balances current business activities with new industry acquisitions. Its success is undervalued acquisition meets attractiveness and COE test. The challenges are: increased capital market competition, need for industry specific knowledge, and growth of the company and diversity. The restructuring seeks underdeveloped or sick companies and industries. Its successes are: utilize and pass the three tests and ability to find undervalued companies with growth potential. Its challenges are: restructurer exposed to more risk, time limit for success, hold onto a restructured company, and growing depletion of restructuring pool with increased competition. The transfer of skills involves activities important to competitive advantage. With transferring skills, business activities are similar enough that sharing knowledge would be meaningful. However, skills must be useful to key business activities and must be beyond competitors’ capabilities. The ability to share activities has been a potent basis for corporate strategy because sharing often enhances