Which of the Following Is a Negative Effect of Downsizing

question 35

Multiple Choice

Which of the following is a negative effect of downsizing?

• A)In case the laid-off employees are a part of any labor unions, the company may have to fight the unions legally.
• B)Many downsizing campaigns let go of people who turn out to be irreplaceable assets.
• C)Downsizing interferes with the optimization of resources brought through voluntary transactions in the market.
• D)Downsizing is time-consuming because managers have to go through employee records to look for low performers.
• E)Downsized companies have to deal with the extra pressure of gaining back the business and confidence of the client.

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Definitions:

Burnout

A situation that occurs when workers experience dissatisfaction, disillusionment, frustration, and weariness from their jobs.

Midlife Crisis

A stage of uncertainty and indecision brought about by the realization that life is finite.

Critical Mass

The minimum amount of fissile material needed to maintain a nuclear chain reaction or the minimum size or amount required for something to maintain or expand.

Extinction

The process through which a species, family, or larger group of organisms becomes permanently absent or dies out from the Earth.