By Indian companies are restructuring organisational hierarchies to reduce handoffs and speed up decision-making, moving beyond headcount reduction to re-examine where decisions are taken and how responsibilities are distributed across functions, according to ETHRWorld. The changes include simplifying reporting structures and creating cross-functional teams, with the stated aim of reducing operational complexity and aligning organisational design with business priorities.
Bajaj Electricals shifted from a 19-layer structure to seven broadband job bands, moving from a business-unit-led model to a functionally led structure across marketing, supply chain, quality and manufacturing. Granules CHRO Vinod Parur described the approach as “centralise standards, decentralise decisions”, while Shiprocket said it has adopted a “Fitter, Flatter, Faster” model with cross-functional squads formed and disbanded around merchant and solution requirements.
What reducing handoffs actually means
A handoff is any point where work passes from one role, team or approval layer to another. Each handoff adds waiting time, creates opportunities for miscommunication, and diffuses accountability. When an approval travels through five management layers before reaching someone who can act, the organisation has manufactured delay into its operating model.
The Indian examples show three distinct mechanics. Bajaj Electricals compressed 19 layers into seven broadband bands, which means fewer formal levels where a decision can stall. Granules centralised governance, data, compliance, technology and workforce planning into enterprise centres of excellence while pushing productivity, customer responsiveness and talent deployment decisions to business teams. Shiprocket consolidated departments and sub-departments, broadened its designation hierarchy, and introduced squads that form and disband around specific merchant needs.
The common thread is not simply removing managers. It is separating decisions that benefit from central standards from decisions that benefit from local speed. Parur’s phrase captures this: standards are centralised, decisions are decentralised.
Why this differs from headcount reduction
Headcount reduction removes people but often leaves the underlying decision architecture untouched. The remaining employees simply absorb the work of departed colleagues, and the same number of approvals, escalations and handoffs continues within a smaller workforce. The Korn Ferry Workforce 2025 survey, which covered more than 15,000 professionals across 10 markets including India, found that 41 percent of employees said their organisations had cut management layers, while 43 percent said their leaders were not aligned and 37 percent reported feeling directionless because of a lack of managers.
This points to a risk that the current wave is trying to address: cutting layers without redesigning decision rights can produce confusion rather than speed. The Indian companies cited by ETHRWorld are attempting something more deliberate. Bajaj Electricals linked career progression to roles, impact and accountability rather than designation changes alone. Granules moved from a hierarchy-centric structure to a capability-centric model. These are attempts to change how authority flows, not just how many people sit in the chart.
What the top pages miss about the Indian context
Much of the available guidance on organisational restructuring is generic and dated. Bain and Company research from 2010, cited by Postshift, found that one third of reorganisations launched by new CEOs produced no uptick in performance and in some cases destroyed value. The same source notes that organisations often focus on structure first because it is well understood, while neglecting decision-making, which is where problems begin.
But the Indian context adds layers that generic frameworks do not address. Promoter-driven companies, common in India, often concentrate decision rights with founders or family members regardless of formal reporting lines. A flattened chart may not change where decisions actually get made if the promoter still approves every significant commitment. Professionally managed firms face a different constraint: boards and audit committees may require specific approval thresholds that limit how far authority can be pushed down.
Indian labour law also shapes what is possible. Changing reporting lines, roles and responsibilities without terminating employment is generally less legally fraught than retrenchment, but material changes to employment terms can still require consent under contract law and may be scrutinised under the Industrial Disputes Act and state Shops and Establishments Acts. HR teams should confirm the position for their own state and situation before implementing role changes.
Practical frameworks for decision-rights restructuring
The sources do not provide a single perfect model, and Postshift argues that no single structure or decision-making model works for every organisation. Communities of practice, networks, agile teams and line organisations each need different decision approaches depending on who decides and who acts on the outcome.
In practice, Indian HR and OD teams can use three tools. A RACI matrix clarifies who is responsible, accountable, consulted and informed for each decision type. A delegation matrix sets monetary or risk thresholds below which frontline managers can act without escalation. A decision log records which decisions were made, by whom, and how long they took, creating a baseline for measuring improvement.
The transition itself needs staging. Postshift recommends linking the transition plan to business strategy and giving employees protected spaces to try and fail as they find the right balance. For Indian firms, this might mean piloting new decision rights in one business unit or function before rolling out across the enterprise.
What HR and payroll teams should watch
Payroll and HR operations feel restructuring immediately. Broadbanding, as at Bajaj Electricals, changes how roles are graded and how compensation bands are defined. When departments consolidate, reporting lines change and payroll cost centres must be remapped. When cross-functional squads form and disband, HR systems need to track temporary assignments without creating permanent reporting changes.
The employee experience angle is also material. Middle managers whose roles are eliminated not for cost but because their approval function is removed may remain employed but feel displaced. The Korn Ferry finding that 37 percent of employees felt directionless after layer cuts suggests that communication and role clarity are as important as the structural change itself.
The measurable outcomes to track are decision cycle time, escalation rates, handoff counts in key processes, and employee sentiment during the transition. Without these, an organisation cannot know whether it has reduced handoffs or simply relocated them.
Sources: ETHRWorld
Photo: 02026 Humans first, humans second, sorry Braun 💁♂️ by Marsilar, CC BY-SA 4.0
