Which of the following statements is true about downsizing?
A) HRM cannot,and should not,inform all employees why downsizing is necessary
B) HRM should withhold information regarding downsizing rather than maintain open communication with remaining employees
C) downsizing is associated with positive stock returns
D) downsizing results in higher profitability following layoffs
E) HRM can provide downsized employees with outplacement services to help them find new jobs

Question

Quizplus · Accepted Answer

HRM can provide downsized employees with outplacement services to help them find new jobs. This is a common practice to support and assist employees who have been laid off due to downsizing. A and B are not true as HRM should maintain open communication and inform employees about downsizing. C and D are not always true as the impact of downsizing on stock returns and profitability can vary depending on the circumstances.

Which of the Following Statements Is True About Downsizing