Delayering

Meaning & Definition

Delayering is an organizational approach that either removes layers of management through a restructure or creates a strong organization with fewer levels of management by delayering. The purpose of delayering is to reduce authority, improve communication, increase speed of decision-making, and empower employees by reducing unnecessary levels of management.

Important features of Delayering

• Provides faster and better quality decisions.
• Decreases the amount of time and money spent on management and administration.
• Increases communication across departments.
• Provides more responsibility to employees.
• Creates a more simplified and flexible organization.

Policy & Compliance Guidelines

Although there aren’t any specific statutory compliance requirements that directly relate to the process of delayering in India, if delayering results in any change of roles or attachments or job loss, then the employer will also have to comply with all other relevant labour legislation as prescribed by the Industrial Disputes Act (1947) and all other relevant internal human resources restructuring policies.