Final answer:
Companies often cut human resource management costs without considering the impact on profits can lead to negative consequences, such as losing talented workers and decreasing employee morale.
Step-by-step explanation:
The statement that companies often cut human resource management costs without considering the impact of their move on profits is True.
When companies cut human resource management costs without considering the impact on profits, it can have several negative consequences. One major impact is that companies may lose their most talented workers, known as adverse selection, as they may choose to leave for better employment alternatives at other firms. This can lead to a decrease in business performance and profitability.
Moreover, if companies focus solely on cutting costs without considering the long-term effects, it may result in a decrease in the quality of employees or a decline in employee morale, both of which can ultimately harm a company's profitability.