Identify a difference between the crisis stage and the dissolution stage of organizational decline.
A) Decline is reversible at the crisis stage, whereas it is irreversible at the dissolution stage.
B) The crisis stage is the first stage of organizational decline, whereas the dissolution stage is the fifth stage of organizational decline.
C) In the crisis stage, management announces belt-tightening plans designed to cut costs, increase efficiency, and restore profits, whereas in the dissolution stage, management recognizes the need to change but still takes no action.
D) In the crisis stage, managers fail to recognize the internal or external changes that will harm their organizations, whereas in the dissolution stage, managers assume that if they just run a tighter ship, company performance will return to previous levels.

Question

Quizplus · Accepted Answer

The main difference between the crisis stage and dissolution stage is that at the crisis stage, the decline is still reversible as management attempts to make changes to restore the organization, whereas at the dissolution stage, the decline is irreversible as management fails to take action and the organization ultimately dissolves.

Identify a Difference Between the Crisis Stage and the Dissolution