Which of the following best describes downsizing in an organization?

Downsizing in an organization refers to the intentional reduction of the size of its workforce or the elimination of certain functions or divisions. This typically occurs in response to market conditions, financial pressures, or a strategic shift to improve efficiency. When a company downsizes, it may close down entire divisions, remove specific activities that are no longer viable, or lay off employees to streamline operations and cut costs.

In contrast, adding more departments would indicate growth and expansion within an organization. Expanding the workforce also suggests an increase in staffing levels, which is the opposite of downsizing. Increasing management levels implies a more complex hierarchy rather than a simplification, which also does not align with the concept of downsizing. Therefore, the choice that accurately reflects the definition of downsizing is the removal of certain activities or the closing of divisions, as this captures the essence of reducing organizational scale and focusing on core operations.