Delayering and span of control: a model to assess appropriate management size during downsizing. A continuing process...

Health-care organizations are continuing to seek effective methods of "downsizing" or "rightsizing" their workforce in response to economic pressures imposed by local and national health-care reform. Staff reductions often appear haphazard or reactionary and typically include an "across-the-board" methodology to achieve a predetermined financial goal. In contrast, review of the literature suggests that chances of success improve when the approach is more thoughtful and based on sound principles. A key component of all successful strategies is proper sizing and restructuring of the management staff. This article presents one possible model that allows an organization to rationally assess management structure and carry out an effective downsizing strategy. The process considers the number of management layers in the organization, the number of individuals a manager supervises (span of control), and the relative complexity of the work performed. Critical to success is an effective training component to educate "surviving" managers on techniques needed to "do more with less."