Downsizing May Be Necessary Because Acquisitions Often Create a Situation

question 79

True/False

Downsizing may be necessary because acquisitions often create a situation in which the newly formed firm has duplicate organizational functions such as sales, manufacturing, distribution, human resources, and management.

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Definitions:

Bargaining Power

The relative capacity of parties in a negotiation to influence the terms and conditions of agreements.

Loose Labor Market

A situation in the job market where the supply of workers exceeds the demand for labor, often leading to higher unemployment rates and lower wages.

Economic Strike

A work stoppage by employees to pressure their employer to meet their demands regarding wages, benefits, and working conditions.

Conditions of Employment

The terms, circumstances, and environment under which an employee works, including hours, salary, benefits, and workplace policies.