“Delayering” during the recession could be worthwhile for SMEs as a cost-cutting measure while increasing operational efficiency. The process involves trimming the business hierarchy, especially in terms of reducing management.

Delayering would improve performance in the lower-middle management levels and improve communication by promoting direct dialogue between lower-level managers and executives, Ret. Lt. Col. Nageshwant Roy Vaid, CEO of Orbit Industries Limited, told the SME Times.