Which term describes removing levels of management from the hierarchy?

Which term describes removing levels of management from the hierarchy?

• A. Downsizing
• B. Delayering
• C. Outsourcing
• D. Restructuring

Answer: (B)

The main concept is removing levels of management from the hierarchy, which is known as delayering. Delayering creates a flatter structure by cutting out one or more middle-management layers. This can speed up decision-making and improve communication because information has fewer filters to pass through and managers are closer to frontline staff and customers. It can also reduce overhead costs associated with middle managers. However, it changes the balance of workload and can increase the span of control for remaining managers. This is different from downsizing (reducing overall headcount without necessarily removing management levels), outsourcing (moving activities to external providers), and restructuring (a broader reorganization of roles and reporting lines, not specifically about removing hierarchy levels).