Examiner’s report – BT/FBT Sept 19 to Aug 20
2
Example 1:
In a drive for increased productivity, Mutandyx Co has reorganised its staff from large departments
into small project-based teams and has retrained staff so that they are multi-skilled and can take on
different roles as required. Many of the former managers now work on projects. The changes have
enabled Mutandyx Co to win more overseas contracts while maintaining the
workforce at its current
level.
Which technical term is used to describe the type of restructuring outlined in the above
scenario?
1. Delayering
2. Outsourcing
3. Downsizing
4. Reshaping
The correct answer is 1.
Delayering is a process that is often implemented to restructure the way in which work is done. The
facts presented in the scenario describe a transition away from large departments and towards
smaller project teams, with fewer managers. This is consistent with delayering.
None of the information given suggests that Mutandyx Co has outsourced its operations to
external
suppliers.
Maintaining the workforce at its current level confirms that the company has not downsized.
Example 2:
XYZ, an
IT company, has been criticised by its employees who believe that the level of remuneration
it pays to its non-executive directors is too high.
Which of the following is a suitable way of calculating the remuneration package for non-
executive directors?
1. A fixed daily rate for the amount of time they commit
2. A fixed percentage of the profits of the organisation
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