Having too many employees best resolves with which approach?

Study for the Year 11 Business Studies Preliminary Exam. Use flashcards, multiple-choice questions, and detailed explanations for each topic. Prepare effectively for your exam and boost your confidence!

Multiple Choice

Having too many employees best resolves with which approach?

Explanation:
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.

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.

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