If a business has too many employees, which organizational approach is recommended?

• A. Flatter organisational structure or outsource
• B. Centralize everything
• C. Hire more managers
• D. Increase payroll

Answer: (A)

When a business has too many employees, the aim is to simplify how work is organized to cut costs and improve communication. A flatter structure means fewer layers of management, so each manager oversees more people (a wider span of control). This reduces payroll costs tied to middle management and speeds up decision-making, helping the business run more efficiently with the existing workforce. Outsourcing parts of the work to external providers can further cut fixed staffing needs, giving flexibility and lowering ongoing salaries while letting the business focus on core activities. Taken together, this approach directly addresses excess headcount and expenses, making it the most effective option. Centralizing everything tends to create bottlenecks and doesn’t reduce the number of staff; hiring more managers increases costs; simply increasing payroll without changing structure doesn’t solve overstaffing.