Having too many employees best resolves with which approach?

• A. Flatter organisational structure or outsource
• B. Add more management layers
• C. Expand payroll
• D. Hire more staff

Answer: (A)

When a business has too many employees, the focus is on reducing internal complexity and payroll while maintaining output. A flatter organisational structure cuts the number of management layers, which lowers wage costs for managers and administrators and speeds decision-making because communication lines are shorter. Outsourcing non-core tasks lets the company size down its internal workforce while still getting the work done, further reducing payroll and administrative burden. Together, these approaches directly address the problem by simplifying the structure and lowering ongoing personnel costs.

In contrast, adding more management layers increases overhead and slows communication; expanding payroll raises costs; hiring more staff adds to headcount rather than streamline it.