Question

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) Downsizing
b) Rightsizing
c) Delayering
d) Restructuring

Answer 1

The management of Fresh Farms, Inc. has decided to reduce the number of middle managers by 20 percent to cut costs. This action is an example of delayering - a process in which organizations remove layers of management to streamline operations and reduce costs.

Step-by-step explanation:

The management of Fresh Farms, Inc. has decided to reduce the number of middle managers by 20 percent to cut costs. This action is an example of delayering - a process in which organizations remove layers of management to streamline operations and reduce costs. Delayering involves flattening the organizational structure and eliminating unnecessary managerial positions, which ultimately contributes to a more efficient and cost-effective operation.