Discuss the likely advantages and disadvantages to PGP of the proposed delayering of its organisational structure.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [Knowledge] Removing levels of hierarchy; cuts management numbers, increases span of control; reduces chain of command.
2. [Application] Structure not really changed since privatisation; profit motive requires cost cutting and more flexible structure; more outsourcing will allow further delayering.
3. [Application] Workers being paid a lot more now should be prepared to take more responsibility.
4. [Analysis] Opportunities for delegation and increased accountability
5. [Analysis] Improved communication as a result of shorter chain and scope for job enrichment.
6. [Analysis] Motivational effects of these changes – compared with the uncertainty and loss of security that they might cause.
7. [Analysis] PGP - greater need for flexibility in changing times e.g. oil price down and increased use of renewables. PGP needs to cut costs to improve ratio results/performance.
8. [Evaluation] Will removing two levels be enough?
9. [Evaluation] How will the changes be managed and communicated?
10. [Evaluation] Will different numbers of levels be appropriate in different departments?
11. [Evaluation] Need to reconsider whole organisation structure?
12. [Evaluation] How will proposed expansion into A/B options impact on organisation structure?
13. [Evaluation] Is delayering a sufficiently significant change to the structure?