Question

In the context of the stages of organizational decline, which of the following is a difference between the faulty action stage and the crisis stage?a. In the faulty action stage, the company is dissolved through bankruptcy proceedings, whereas in the crisis stage, management recognizes the need to change but still takes no steps.b. In the faulty action stage, management announces belt-tightening plans designed to cut costs, increase efficiency, and restore profits, whereas in the crisis stage, bankruptcy or dissolution is likely to occur unless the company completely reorganizes the way it does business.c. In the faulty action stage, managers wait to see if organizational performance problems correct themselves, whereas in the crisis stage, companies completely reorganize the way they do business.d. In the faulty action stage, companies typically lack the resources to fully change how they run their businesses, whereas in the crisis stage, managers assume that if they just run a tighter ship, company performance will return to previous levels.

Answer 1

The correct answer is B

Step-by-step explanation:

Organizational decline happen or occur when the companies or the firms does not anticipate, acknowledge, adapt the external or the internal pressures or neutralize, which threaten the survival of the company or firm.

And in the stage of the faulty action, it arises because of the increasing costs and the decreasing profits and the market share. The management states the plans of the belt tightening, which is established or designed in order to cut the costs, restore the profits and to increase the efficiency.

The stage of crisis, where the dissolution or the bankruptcy is likely to happen unless the firm completely acknowledge the way it does the business. But the companies lack the resources required to fully change how they should run their business.