Which of the following statements is true about downsizing?
A)The typical organizational response to a surplus of labor has been downsizing, which is slow but low in human suffering.
B)An organization turns to downsizing only in times of recession.
C)In firms that are high in research and development intensity, downsizing has been linked to higher long-term organizational profits.
D)The negative effects of downsizing seem to be reduced in service industry's characterized by high levels of customer contact.
E)Downsizing efforts often fail because employees who survive the purges often become narrow-minded, self-absorbed, and risk-averse.

Question

Quizplus · Accepted Answer

One of the reasons downsizing efforts often fail is that employees who survive the purges often become narrow-minded, self-absorbed, and risk-averse. Motivation levels drop off because any hope of future promotions-or even a future-with the company dies out.

Which of the Following Statements Is True About Downsizing