Question

All of the following are negative impacts of downsizing on organizational performance, except ________. a) less commitment to the organization b) increased sickness absences c) lower creativity d) lower concentration on job e) lower wage costs

Answer 1

Option E

lower wage costs

Step-by-step explanation:

All this other options are negative impacts of downsizing on organizational performance which include:

- A: less commitment to the organization; this will bring about less motivation

- B increased sickness absences; there will so much excuses not to work effectively

- C lower creativity; because to the lack of motivation, creativity will be lowered.

- D lower concentration on job; it is normal to experience this and it is mainly because when an organization is downsized, there is guarantee for appreciation for Joan well done.

But all this options are a negative effects of downsizing an organization except lower wage costs

Answer 2

Answer: e) lower wage costs

Explanation: Reduction in the size of the workforce always have an immediate positive result or outcome in the case of lower wage costs. Companies who tend to cut employees and don't restructure experience stress reactions among their employees that can lead to increased sickness absences, lower concentration on the job, and lower creativity. But reduction in wages tend to have positive effects on the company.