Question 1

Outsourcing refers to the reabsorbing of excess or inappropriately placed workers into a restructured organization.

Accepted Answer

Outsourcing involves contracting work to an external company or organization, not reabsorbing workers into a restructured organization.

Question 2

Work redesign is a short-term strategy,whereas workforce reduction is a medium-term strategy.

Accepted Answer

Work redesign and workforce reduction are both medium to long-term strategies. Work redesign involves restructuring work processes and roles to improve efficiency, while workforce reduction involves reducing the number of employees to cut costs. Both strategies require significant planning and implementation time, and their impact on the organization can be long-lasting.

Question 3

There is considerable evidence that workforce reduction programs ultimately achieve their objectives of cutting costs.

Accepted Answer

While workforce reduction programs are often initiated to cut costs in the short term, research and evidence suggest that they may not achieve their objectives in the long term. These programs can lead to decreased employee morale, reduced productivity, loss of institutional knowledge, and potential costs associated with rehiring and training if the workforce needs to be scaled up again. Additionally, the savings from reduced payroll expenses can be offset by severance and reorganization costs.

Question 4

When rationalizing decisions about downsizing,many managers will rely on economic,accounting,and revenue-based rationales.

Accepted Answer

This statement is true. Many managers will use economic, accounting, and revenue-based reasons to justify downsizing decisions.

Question 5

Interactional justice refers to the interpersonal treatment employees receive during the implementation of the downsizing decision.

Accepted Answer

Interactional justice specifically addresses the fairness of interpersonal treatment, communication and respect given to employees during the downsizing process.

Question 6

Asking employees to take voluntary sabbaticals is one medium-term solution to avoid downsizing.

Accepted Answer

Voluntary sabbaticals can help companies cut costs without resorting to layoffs, by temporarily reducing the number of employees on the payroll.

Question 7

Inplacement provides a program of counselling and job search assistance for workers who have been terminated.

Accepted Answer

Outplacement is the correct term for a program of counseling and job search assistance for workers who have been terminated.

Question 8

Downsizing is unlikely to disappear in the future because it helps to alleviate the huge financial burdens facing many organizations.

Accepted Answer

Downsizing has become a common strategy for organizations to reduce costs and increase efficiency. It is likely that it will continue to be used in the future, as financial burdens on organizations are unlikely to disappear.

Question 9

Some researchers have found evidence that the longer a person is unemployed,the higher the person's risk for suicide.

Accepted Answer

Studies have shown that unemployment is linked to increased risk for suicide, and this risk seems to be higher the longer a person is unemployed.

Question 10

One issue that has received little attention is the effect of downsizing on the organization's reputation for corporate social responsibility.

Accepted Answer

The answer of One issue that has received little attention...

Question 11

Downsizing may be considered a breach of the unwritten employment contract between employers and their employees.

Accepted Answer

The answer of Downsizing may be considered a breach of...

Question 12

Systematic change is a short-term strategy.

Accepted Answer

Systematic change is a long-term strategy that involves planned and intentional efforts to bring about lasting and sustainable improvement. It focuses on transforming organizational culture, processes, and systems to achieve desired outcomes.

Question 13

Outplacement is providing a program of counselling and job search assistance for workers who have been terminated.

Accepted Answer

Outplacement is a program of counselling and job search assistance for workers who have been terminated, therefore the statement is true.

Question 14

Downsizing can be linked to less innovation and more protection of one's turf.

Accepted Answer

Downsizing often leads to a decrease in innovation as people focus more on protecting their own jobs and roles instead of taking risks and trying new ideas. Additionally, with fewer resources, there may be less investment in research and development.

Question 15

"High-involvement human resource management" deals with treating people as expenditures.

Accepted Answer

High-involvement human resource management (HIHRM) actually focuses on treating employees as valuable assets rather than expenditures. It involves providing employees with opportunities for development and involvement in decision-making, which can result in increased job satisfaction, motivation, and productivity.

Question 16

Many downsizing efforts fall short of meeting organizational objectives,and are carried out with little strategic planning or consideration of the costs to the individuals and the employer.

Accepted Answer

Downsizing efforts can often fail to achieve their intended goals and can be done without proper planning and consideration for the impact it will have on both the employees and the organization.

Question 17

There are three types of downsizing strategies: workforce reduction,work redesign,and systemic change.

Accepted Answer

The answer of There are three types of downsizing strategies:...

Question 18

Distributive justice refers to the rules used to determine which employees will be downsized.

Accepted Answer

Distributive justice refers to the fair distribution of rewards and resources, not downsizing decisions.

Question 19

Research evidence indicates that downsizing creates job insecurity and low job satisfaction,which are related to greater safety compliance because employees do not wish to be hurt on the job.

Accepted Answer

Research evidence suggests that downsizing creates job insecurity and low job satisfaction, which can lead to decreased safety compliance. Employees feeling insecure or unsatisfied may be less engaged and attentive, potentially increasing the risk of accidents or non-compliance with safety protocols.

Question 20

Negative consequences of downsizing might be minimized with greater communication and employee participation.

Accepted Answer

When a company communicates openly with employees and involves them in the decision-making process during downsizing, the negative effects such as decreased morale, increased turnover, and lowered productivity can be minimized.

Quiz 10: Downsizing and Restructuring