Joe is the CEO of TexTel Inc. ,a company has a team-oriented culture in which people perform as groups and complete short-term projects to earn revenue.After studying his company's structure,Joe feels TexTel's current processes are inefficient.As a result,Joe decides to downsize the organization and then use the profits to enhance the organization's efficiency.What is a disadvantage of this approach?
A) Downsizing yields slow but long-term profits.
B) Downsizing is the simplest way to ensure current and future competitiveness.
C) Downsizing will interfere with the effectiveness of the organization's teamwork.
D) Downsizing often results in acquisition of companies by other organizations.
E) Downsizing requires moving to relatively expensive locations.

Question

Quizplus · Accepted Answer

TexTel has a team-oriented culture and performs as groups. Downsizing, which involves laying off employees, can interfere with this teamwork and decrease morale among remaining employees. This may ultimately harm the efficiency and effectiveness of the organization.

Joe Is the CEO of TexTel Inc