Organizations Should Prepare Contingency Plans Just for Unfavorable Events

question 81

True/False

Organizations should prepare contingency plans just for unfavorable events.

Recognize the significance of skills, especially technical and interpersonal skills, in the contemporary labor market.

Understand the concept and components of high-performance work systems.

Recognize the importance of employee empowerment in organizational success.

Identify the characteristics of skilled knowledge workers and their role in the economy.

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Definitions:

Diversified Portfolios

Investment strategies involving a mix of assets (stocks, bonds, real estate, etc.) to reduce risk through diversification.

Positive Correlation

A relationship between two variables where they move in the same direction; as one increases, the other also increases.

Recession Risk

The likelihood of an economic downturn, characterized by a significant decline in economic activity across the economy lasting more than a few months.

Partial Certainty

This refers to a scenario in business or decision-making where there is some known information, but complete certainty about outcomes is not possible, reflecting a mix of known and unknown variables.