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 eliminate only people who are replaceable.

Question

Quizplus · Accepted Answer

Downsizing often disrupts the social networks through which people are creative and flexible. This can cause negative effects on the morale and motivation of remaining employees, as well as on collaboration and innovation within the organization. While downsizing may result in short-term cost savings, it may also have long-term detrimental effects on organizational effectiveness.

Identify the Correct Statement Regarding Downsizing