Question

The employees of Carlofen, a cell phone manufacturer, raised a concern to their management about their poor pay and excess workload. However, the management failed to address their issue, so a majority of them resigned at once. As a result, the company's sales began to fall and its overall performance began to deteriorate. This scenario best illustrates:

Answer 1

This scenario best illustrates: organizational decline.

Step-by-step explanation:

Is when a company doesn’t take action against the changes that may be a threat. Sometimes, companies become confident in the processes that have brought success over the years, nevertheless, the environment is always changing, therefore actions should be innovated but companies are often reluctant to do so if not ignoring the situation.

There are five stages of organizational decline: blinded, inaction, faulty action, crisis, and dissolution.