Which of the Following Statements Is True About Downsizing

question 70

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 industry's 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:

National Bank

A financial institution chartered by the federal government, with the powers to issue currency and regulate the money supply.

Establish

To set up, found, or create an organization, system, or set of rules.

Dual Federalism

A political arrangement in which power is divided between the federal and state governments in clearly defined terms, with state governments exercising those powers accorded to them without interference from the federal government.

Federal Government

The national government of a federated state, which shares sovereignty with the constituent states or provinces and possesses certain powers delegated to it by a constitution.