Which of the following statements is true concerning company downsizing?

BlackTom题目解析

Question

Which of the following statements is true concerning company downsizing?

BlackTom题目解析

BlackTom AI · Accepted Answer

Exploring the concept of company downsizing, we’ll evaluate each statement on its accuracy.
Option 1: It positively affects employee productivity. Often, downsizing disrupts workflows, increases workload on remaining staff, and can undermine collaboration, which commonly harms morale and productivity rather than improves it. Therefore this claim is not generally true.
Option 2: It improves employee morale. In most cases, downsizing lowers morale among both laid-off employees and those who remain, who may feel job insecurity or survivor guilt. Unless downsizing is part of a broader, clearly communicated strategic plan that restores stability, morale is unlikely to improve. Thus this statement is misleading.
Option 3: It exceeds company financial objectives. While downsizing can reduce costs, it does not automatically guarantee that financial objectives are surpassed; success depends on many factors like execution, market conditions, and long-term impact. As a blanket claim, it overstates typical outcomes and is not a universally true statement.
Option 4: It is sometimes called "rightsizing." This is a common and accepted term in business management; rightsizing refers to restructuring to align the organization’s size with its needs and strategy, which can include downsizing or resizing more selectively. This statement accurately describes downsizing in many contexts.

Which of the following statements is true concerning company downsizing? BlackTom题目解析Single choice

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