In the Context of the Stages of Organizational Decline, Which

question 3

Multiple Choice

In the context of the stages of organizational decline, which of the following is a difference between the faulty action stage and the crisis stage?

• A) In the faulty action stage, management announces belt-tightening plans designed to cut costs, increase efficiency, and restore profits, whereas in the crisis stage, bankruptcy or dissolution is likely to occur unless the company completely reorganizes the way it does business.
• B) In the faulty action stage, companies typically lack the resources to fully change how they run their businesses, whereas in the crisis stage, managers assume that if they just run a tighter ship, company performance will return to previous levels.
• C) In the faulty action stage, the company is dissolved through bankruptcy proceedings, whereas in the crisis stage, management recognizes the need to change but still takes no steps.
• D) In the faulty action stage, managers wait to see if organizational performance problems correct themselves, whereas in the crisis stage, companies completely reorganize the way they do business.

---

Definitions:

Social Context

The environmental and cultural setting in which a certain behavior, event, or phenomenon occurs, influencing its interpretation.

Racial

Pertaining to the classification of humans into groups based on physical traits, ancestry, genetics, or social relations, often leading to unequal treatment or discrimination.

Ethnic Self-conception

This refers to the way individuals understand and identify themselves in terms of their ethnicity, including the recognition of shared culture, history, and ancestry.

Cultural Differences

The variation in social norms, values, customs, and practices observed among groups of people from different backgrounds.