Question

Restructuring organizations to retain the most essential employees is known​ as:

Answer 1

There are several types of organization restructuring:

1.      Downsizing

2.      Starbust

3.      Verticalization

4.      De-layering

5.      Business process re-engineering

6.      Outsourcing, and

7.      Virtualization

Among them, the type of restructuring to retain the most essential employees is known as de-layering.  De-layering involves breaking down the typical pyramid setup into a flat organization. Its purpose is to thin out or lessen the top layer of unproductive and highly paid ‘white collar’ personnel. It promotes innovation, builds customer intimacy and increases consumer satisfaction. The main advantage is that the decision-making process becomes more effective and shorter.