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EVolve - Reorganisation EVolve Is a Mid-Size Company Designing and Developing E-Commerce Websites

question 31

Multiple Choice

eVolve - Reorganisation
eVolve is a mid-size company designing and developing e-commerce websites for retailers.It has been operating for the last 15 years with many of its original staff.It has had all the traditional departments: sales, accounting, web designers and HR.The company has been very successful, recruiting dozens of new customers each month.Since their clients have been very happy with their work, eVolve has had many new clients referred by word-of-mouth, and now they have a much greater demand for their services.The CEO has consulted the department heads and they have decided that the best thing to do is to restructure the company into a team-based structure, where cross-functional teams work together on different projects.The decision has been made public and employees have begun to respond.While some employees are very supportive of the idea, some fear that it would lead to greater confusion and inefficiencies, which will result in poorer performance.Others are concerned about the possibility of losing their positions.Management has considered these thoughts, but is still determined to move ahead with the change.
-Refer to eVolve - Reorganisation (Scenario) .If management makes it clear that employees who do not cooperate with change efforts will lose their jobs, they would be using ________ as a way to address resistance to change.

Definitions:

Past Consideration

A benefit already provided or an action already performed, which cannot legally constitute consideration for a current contract.

Consideration

A value that is exchanged between parties in a contract, making the agreement legally binding.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party, if the latter has reasonably relied on that promise to their detriment.

Hamer v. Sidway

A landmark case in contract law regarding forbearance as consideration, where a promise not to do something can be as legally binding as a promise to do something.