Put yourself in the position of the General Manager at a large organisation (approx. 3000 employees). At the recent monthly meeting of the Executive team (GM and 8 Senior Managers), it was proposed that the organisation downsize by removing a layer of middle-management from the organisational structure. Where there is currently 5 levels of management, the proposed structure would have only four. This would involve retrenching (laying off) approximately 100 individuals.

What factors and likely consequences should be considered when assessing the proposal? Where possible, relate your answer to the key elements of an organisational structure.