Question

The top management team of ABC, Inc., facing financial problems, decides to reduce the number of middle managers by 10 percent in order to cut costs. This is an example of:

A. innovation
B. restructuring
C. strategy
D. empowerment
E. a self-managed team

Answer 1

Reducing the number of middle managers at ABC, Inc. to cut costs is an example of restructuring, focusing on altering the company's organizational structure to increase efficiency.

Step-by-step explanation:

The top management team of ABC, Inc. deciding to reduce the number of middle managers by 10 percent in order to cut costs is an example of restructuring. This type of change often involves altering the organizational structure, reducing levels of middle management, and is typically aimed at increasing efficiency and reducing costs. Restructuring can often lead to layoffs and changes in employee roles, and in this context, it differs from strategies such as innovation, which focuses on creating new methods, ideas, or products. It also differs from empowerment, which involves giving employees more autonomy and decision-making power, and is not characterized by reducing employee numbers.