Question
Joe, the CEO of TexTel Inc., studies the structure of his organization and finds that many of its processes are inefficient. His company has a
Joe, the CEO of TexTel Inc., studies the structure of his organization and finds that many of its processes are inefficient. His company has a team-oriented culture in which people perform as groups and complete short-term projects to earn revenue. He decides to downsize the organization to increase profits and use the profits to enhance the organization\'s efficiency. Emily, the company\'s HR manager, thinks downsizing is detrimental to the organization\'s growth. Which one of them is right?
1. Emily is right because downsizing requires moving to relatively expensive locations.
2. Joe is right because downsizing yields slow but long-term profits.
3. Emily is right because downsizing often results in acquisition of companies by other organizations.
4. Emily is right because downsizing will affect the organization\'s team culture and result in poor productivity.
5. Joe is right because downsizing is the simplest way to ensure current and future competitiveness.
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