Question

Wilma heads the production department at Riden Inc., a firm that stresses the importance of maintaining regular contact with customers. Wilma is expecting a labor surplus in the future. John, a supervisor, recommends downsizing as an option to deal with this labor surplus. However, Wilma rejects this option. Which of the following statements will validate that Wilma 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.

Answer

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