In the context of organizational decline, which of the following is true of the dissolution stage?
A) Cutbacks and layoffs will have reduced the level of talent among employees.
B) Key managers fail to recognize the threats due to an inability to understand their significance.
C) The managers may be waiting to see if the problems will correct themselves.
D) The company is dissolved through bankruptcy proceedings.

Question

Quizplus · Accepted Answer

The dissolution stage refers to the final stage of organizational decline where the company is dissolved through bankruptcy proceedings, indicating that option D is the correct answer. Option A is incorrect as the loss of talent occurs earlier in the decline phase, and option B is incorrect as key managers in the dissolution phase may be aware of the threats but have no means to fix them. Option C is also incorrect as management in the dissolution phase is well-aware of the problems but cannot fix them.

In the Context of Organizational Decline, Which of the Following