Tuesday, 28 July 2009

Quarter of managerial posts to go at Shell?


A report in Management Today suggests that despite making a profit of $26bn last year, the Chief Executive of Shell Petroleum is expected to announce a delayering of the oil giant's senior management team, resulting in up to 600 managers being declared redundant. The old slogan of "You can be sure of Shell" may therefore sound rather empty for many of the employees.

  • Other than the obvious financial savings, what are the benefits to a large organisation such as Shell of taking out layers of management?

  • How would you expect Shell to communicate such a delayering programme to affected employees?

  • Shell has a reputation for looking after its employees. Is it possible for this reputation to continue after such a delayering and redundancy programme?

  • What particular skills will Shell be looking for in those managers who survive the downsizing activity?

  • What will be the likely effect on those employees whose managers are removed?

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