Downsizing Is the Calculated Reduction of Permanent Employees in an Effort

question 26

True/False

Downsizing is the calculated reduction of permanent employees in an effort to cut costs and/or to improve an organization's ability to run more efficiently.

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Definitions:

Divisional Structure

An organizational structure where operations are divided into separate divisions, each focused on a particular product line, market area, or professional service.

Chief Executive

The highest-ranking officer in an organization, responsible for making major corporate decisions and managing the overall operations.

Consumer Goods

Products and services that are purchased or consumed by individuals or households for personal use.

Departmentalization

The process of dividing an organization into different departments or units, each of which specializes in a specific area of operation.