Fresh Farms, Inc., is facing financial problems. In order to tackle the situation, the management has decided to reduce the number of middle managers by 20 percent to help them cut costs. This is an example of ________.
A) telecommuting
B) restructuring
C) outsourcing
D) empowering

Question

Quizplus · Accepted Answer

Restructuring involves simplifying, shrinking, or downsizing an organization's operations to lower operating costs. It can be done by eliminating product teams, shrinking departments, and reducing levels in the hierarchy, all of which result in the loss of large numbers of jobs of top, middle, or first-line managers, as well as nonmanagerial employees.