Betty heads the production department at Riffer Inc., a firm that stresses the importance of maintaining regular contact with customers. Betty is expecting a labor surplus in the future. Mike, a supervisor, recommends downsizing as an option to deal with this labor surplus, however, Betty rejects this option. Which statement will validate that Betty made the right decision?

A) Downsizing cannot be used to reduce the number of managers.
B) Downsizing would result in increased operational costs.
C) Downsizing cannot provide an immediate solution to labor surplus.
D) Downsizing would hurt long-term organizational effectiveness.
E) Downsizing would harm the hierarchy of top management.

Question

Destini Jadaa · Accepted Answer

Final Answer : D, Explanation :  Downsizing can have negative impacts on long-term organizational effectiveness, including loss of valuable skills, decreased employee morale, and potential damage to the company's reputation, which can affect customer relationships and overall performance.

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