Question

Which of the following is a consequence of restructuring?

A. Increase in the size of departments

B. Increase in employee attrition

C. Increase in hierarchical levels

D. Increase in customer satisfaction

E. Improvement in morale of employees

Answer 1

A consequence of restructuring in a business organization can be an increase in employee attrition.

Step-by-step explanation:

A consequence of restructuring in a business organization can be an increase in employee attrition. Restructuring often involves changes to the organizational structure, which can lead to job redundancies and layoffs. This can result in employees leaving the company voluntarily or through layoffs, leading to an increase in attrition rates.

For example, during a merger or acquisition, two companies may combine departments and functions, resulting in redundancies. In this process, some employees may choose to leave the organization due to uncertainties or changes in job roles and responsibilities.

Therefore, option B, an increase in employee attrition, is a consequence of restructuring.