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:

Power

The ability or capacity to influence or control the behavior of others, the course of events, or the distribution of resources within a social or organizational setting.

Authority

The recognized power or right of an individual or organization to make decisions, direct others, and enforce obedience.

Socioeconomic Status

Combines data on income, education, and occupational prestige in a single index of a person’s position in the socioeconomic hierarchy.

Parental

Relating to a parent or parents, encompassing aspects of nurturing, raising, and providing for offspring.