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) Dissolution is likely to occur unless a company completely reorganizes the way it does business.
C) The managers may be waiting to see if the problems will correct themselves.
D) The company is dissolved through bankruptcy proceedings.

Question

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) ​Dissolution is likely to occur unless a company completely reorganizes the way it does business. 
C) ​The managers may be waiting to see if the problems will correct themselves. 
D) ​The company is dissolved through bankruptcy proceedings.

Quizplus · Accepted Answer

The dissolution stage is the final stage of organizational decline, where the company is dissolved through bankruptcy proceedings. This is usually the result of a long period of decline and unsuccessful attempts to reverse the situation. Cutbacks and layoffs may have occurred earlier in the decline process, but by the dissolution stage, the company's financial situation is usually beyond repair. Managers are unlikely to be waiting to see if the problems will correct themselves, as this is usually too late. Therefore, choice D is the correct answer.

In the Context of Organizational Decline,which of the Following Is