Three direct costs of organizational distress include:
A)participation problems, performance decrements, and compensation awards
B)functional turnover, performance variation, and compensation awards
C)functional turnover, participation problems, and compensation awards
D)performance variation, participation problems, and compensation awards

Question

Quizplus · Accepted Answer

Participation problems, performance decrements, and compensation awards are direct costs of organizational distress because they directly impact the organization's operational efficiency and financial health. Participation problems can lead to decreased employee engagement, performance decrements can reduce productivity, and compensation awards (such as those for wrongful termination or discrimination) can result in significant financial costs.

Three Direct Costs of Organizational Distress Include