Which of the Following Statements Is True About Downsizing

question 75

Multiple Choice

Which of the following statements is true about downsizing?

• A)The typical organizational response to a surplus of labor has been downsizing,which is slow but low in human suffering.
• B)An organization turns to downsizing only in times of recession.
• C)In firms that are high in research and development intensity,downsizing has been linked to higher long-term organizational profits.
• D)The negative effects of downsizing seem to be reduced in service industries characterized by high levels of customer contact.
• E)Downsizing efforts often fail because employees who survive the purges often become narrow-minded,self-absorbed,and risk averse.

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Definitions:

Differentiated Departments

Departments within an organization that specialize in different functions or tasks to achieve greater efficiency and effectiveness.

Temporary Group

A group formed for a specific short-term project or objective, with a definitive endpoint after the completion of the task.

Coordination Problems

Challenges that arise in ensuring that the tasks and activities of different individuals or departments within an organization are aligned and effectively integrated.

Mutual Adjustment

A coordination mechanism where parties continuously adapt and negotiate their work and behavior with each other in order to achieve a common goal.