Downsizing has an immediate effect on costs,and much of the evidence suggests that it:
A)increases profitability in the short term.
B)promotes future competitiveness.
C)hurts long-term organizational effectiveness.
D)increases the motivation of remaining employees.
E)none of the choices are correct.

Question

Quizplus · Accepted Answer

Downsizing may seem like a quick solution to reducing costs, but research has shown that it often negatively impacts the long-term effectiveness of an organization. This is because downsizing can lead to decreased morale and motivation among remaining employees, reduced innovation and creativity, and loss of knowledge and expertise. While it may produce short-term profitability gains, downsizing can ultimately harm an organization's competitiveness and sustainability over time.

Downsizing Has an Immediate Effect on Costs,and Much of the Evidence