Morrisons Homework Feedback

Delayering means removing one or more layers of the hierarchy in a business.

In this case the delayering would result in increased responsibilities on Morrisons duty store managers.

Taking out a level of hierarchy would lead to a shortening of the chain of command, therefore improving communications/speed up decision-making between management and employees on the shop floor. Management can pass news of special promotions to shop floor staff who can then ensure that appropriate displays are in place or price changes made.

Financial efficiency may improve due to the savings in management salaries, therefore reducing costs/may allow Morrisons to refurbish some older stores to provide a more satisfying retail experience for customers. Alternatively the money saved could be put toward the new 'M' format of convenience stores.

Motivation may improve due to workers feeling more involved in management decisions and therefore empowered. More motivated staff are likely to offer higher levels of customer service which is crucial in retail.

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Potential Counterbalance: 

Span of control for remaining managers is likely to increase which could demotivate both them and their subordinates due to increased workload. Demotivated workers may make more mistakes or not be as careful with how the stores are presented which will not impress customers.

Employees may feel there are now less chances of promotion, therefore feel demotivated and may look for a job with a competitor such as Sainsbury. High labour turnover would be a cost to Morrisons.

Junior managers at Morrison may gain more responsibility and a greater workload which may not be reflected in their salary and therefore cause demotivation.

 
Potential Judgement: 
The impact of this decision on workforce motivation may be positive or negative, depending on which level of management has been removed/how this change has been implemented.