Identify the correct statement regarding downsizing.
A) Downsizing improves long-term organizational effectiveness.
B) The negative effect of downsizing is especially low among firms that engage in high-involvement work practices.
C) Downsizing often disrupts the social networks through which people are creative and flexible.
D) The negative impact of downsizing is especially low for those organizations that emphasize research and development.
E) Downsizing campaigns only eliminate people who are replaceable.

Question

Quizplus · Accepted Answer

Downsizing often disrupts the social networks through which people are creative and flexible. This is because downsizing usually involves the layoff of employees, which can damage the social fabric of an organization and negatively impact the morale of the remaining employees. Choices A, B, and D are not accurate as downsizing actually has negative effects on long-term organizational effectiveness, high-involvement work practices, and research and development. Choice E is also not accurate as downsizing campaigns may eliminate valuable and irreplaceable employees.

Identify the Correct Statement Regarding Downsizing