Final answer:
Downsizing generally leads to decreased employee satisfaction due to increased stress and a heightened perception of risk and insecurity among remaining employees, contrary to the belief that it increases satisfaction through added responsibility and empowerment.
Step-by-step explanation:
The statement, "Downsizing tends to increase employee satisfaction because employees' increased workloads make them feel more responsible and empowered," is generally false. Downsizing, which is when a company reduces its number of employees to cut costs, can lead to a host of negative outcomes for remaining employees. These can include a greater sense of vulnerability to stress, an overall increase in stress levels, and a heightened perception of risk, which research has shown to predict lower job satisfaction. Industrial-organizational psychologists suggest that downsizing affects employees' intent to quit, their organizational commitment, and their sense of job insecurity.