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 industries 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.

Question

Quizplus · Accepted Answer

Downsizing efforts often fail because the remaining employees, known as "survivors," may experience increased stress, decreased loyalty, and reduced productivity. These employees may become more focused on self-preservation rather than on innovation or taking risks, which can hinder the organization's long-term performance and adaptability.

Which of the Following Statements Is True About Downsizing