Which of the Following Statements Is True About Downsizing

Multiple Choice

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.